Money News
4th August 2008
Rent to Home Buy scheme 'won't help all first time buyers'
The government's attempt to aid first time buyers via its Rent to Home Buy scheme may not provide the fillip that is required, it has been claimed.
Under plans revealed by Caroline Flint last month, the government will allow homeowners with a combined income of less than £60,000 to rent their home at 80 per cent or less of what it would cost for between two to three years.
It is hoped that this would afford them the chance to save up for deposit.
However, Helen Adams, managing director of campaign website FirstRungNow, said that regional variations in wages would mean that in some areas it would not improve accessibility.
She commented: "In some parts of the country, like in the south of England, it won’t have much impact. Even at £120,000 that would be too low in the south, so the threshold should certainly be reviewed and maybe even its structure changed to give more help."
Ms Adams added: "While limitations have been reduced in that households earning under £60,000 can now be included, it’s still rather bitty and confusing for first-time buyers which I think will reduce uptake."
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