The Rent to Home-buy scheme that was launched by the government in the hope of enabling more people to get onto the property ladder has been deemed unsuccessful.
According to a recent report the scheme has cost taxpayers tens of millions of pounds yet has failed to help anyone get their foot onto the property ladder. The scheme is said to have cost £115 million, and was launched last July.
The idea behind the scheme was that people renting a property would have part of their rent paid for them so that they could save towards a deposit to get their own place, and with lenders demanding increasingly high deposits it was hoped that this would allow people that would otherwise be frozen out of the mortgage market to get their own home eventually by saving the money that they would otherwise have been paying on their rent.
However, reports have confirmed that nobody that signed up to the scheme has actually managed to buy their own home yet. The Conservative Party has said that the scheme is incompetent, and branded it ‘a complete and utter failure’.
The scheme was launched as part of a package of measures by the Labour Government after radical changes to the mortgage market made things increasingly difficult for non-homeowners that wanted to get onto the property ladder.
There are a number of options that are available for those that are looking to get onto the property ladder but cannot afford to get a property on the open market in the normal way.
This includes the Homebuy Direct scheme, where a 30 percent deposit is available from the government and developer, and shared ownership, where a percentage of the property is purchase with a mortgage and rent is paid on the remaining share.
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