Could ‘Rent to Buy’ be the answer to your dream home?

10th December 2014

The government has set aside £400 million to boost the building of new rental homes. The rent to buy scheme will help hardworking people to initially rent, and then one day buy their own home. Julie Tomasik, residential property lawyer at Ansons Solicitors, explains how it works.

The new scheme allows housing associations and other providers to bid for a share in low cost loans to build new homes. These will mainly be one and two bedroom apartments, which landlords must make available at below market rates for a minimum of seven years. This gives the tenant time to save for a deposit, as they have first refusal to buy the property. If they do not want to buy it after seven years, they can move out and rent or buy elsewhere.

If the property is sold to the tenant, the housing association can use their return to build even more affordable properties. Otherwise, they can continue to rent the property at an affordable price to another eligible tenant.

To qualify as a tenant, you must earn less than £33,000 individually or £66,000 as a couple. So if you are interested in owning your own home one day, this scheme could be just the helping hand you need to get onto the property ladder.

Julie advises, “As with other housing schemes such as Help to Buy, the rules and obligations for Rent to Buy can be complex and you should take legal advice to ensure you understand your rights and responsibilities before you sign up. “

For more information on housing schemes or any of our conveyancing services, please contact Julie Tomasik in the conveyancing team, on 01543 267 988 or email Ansons Solicitors has offices in Cannock and Lichfield, Staffordshire.