First-time Buyer
Mortgage-free ‘buy as you go’ scheme could be in Autumn Statement
Households who are “just managing” will be able to buy their homes after 25 years of paying rent, under government plans expected to be outlined in the Autumn Statement.
The weekend papers ran stories of a proposed scheme allowing rent-paying tenants to build up equity with no deposit or mortgage.
Reportedly the National Housing Federation has assured ministers local housing authorities could build 335,000 homes over four years, with ‘some’ on the buy as you go tenure, if extra funding was provided.
‘Buy as you go’ homes will be valued at around 90% of the local market rate.
On the steps of No 10, in her inaugural address as Prime Minister, May said her government would be “driven” by the interests of individuals that were “just managing…working around the clock” and yet finding life “a struggle”.
The development comes as Labour releases new figures showing that the drop in homeownership since 2010 has been worst for young people in the north of England.
In October, the government announced a £3bn fund to increase the number of homes built in England and invited a spectrum of developers to apply for the funds, including smaller and community builders.
