Government's new 'Rent to Buy' scheme

Eric Pickles is set to announce a new £400 million 'rent to buy' initiative.

The Government is wanting to fund housing associations and social landlords in the offering of cheap loans to build new homes that will then be rented out  at below market rates, capped at 80 per cent of local market value  for a seven year period. 

Following this initial period, tenants will be offered the chance to buy the property.

The scheme hopes to see 10,000 homes built during 2015 to 2017, and will be focused on helping young people onto the property ladder.

The Communities Secretary, Eric Pickles said. “As part of our wider housing programme, this new scheme will help increase the provision of low-cost rented accommodation and provide a springboard for young people to upgrade to home ownership down the line.”

The scheme will be open to those with a combined income below £66,000 a year, based on two people earning £33,000 each. 

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