As the general election approaches the government have made getting first time buyers on the property ladder a high priority on their agenda. Government guidelines state that house builders must create homes aimed at first time buyers, in order for them to access £200m in loans from the Department of Communities and Local government.
This Rent to Buy fund claims that it want to give those people renting the chance to get onto the property ladder without having to find a large cash deposit when they buy a property.
The Government scheme works by giving low cost loans to large building companies, and in return they are required to rent out these homes at a below-market rental prices for a minimum of seven years to would be buyers who have never owned their own home. This will then give the tenant to save whilst paying lower than market level rents to either buy the home they are renting or to buy another property.
The current funding level of £200m is for the next two years between 2015-2017, there is also another 200m for builders who constructing homes in London.
The government prospectus states: “The Homes and Communities Agency [administering the scheme] wants to encourage bidders to bring forward schemes which can be built out quickly. We want to minimise the risks presented by a heavily back loaded programme and we will aim to do so by advantaging bids in our assessment that can demonstrate both starts and completion of schemes in the early part of the programme” says the prospectus.
If you are looking to make your first move then give in touch with a member of our team who will happily go through the steps and offer tip to help you get started.