Pilot for new Rent to Homebuy scheme to help first time buyers announced today
Housing Corporation News Release
Wednesday 16 July 2008 53/08
Pilot for new Rent to Homebuy scheme to help first time buyers announced today
A pilot ‘Rent to Homebuy’ scheme to help first time buyers onto the property ladder was announced today by Housing Minister Caroline Flint as she launched 'Facing the housing challenge - Action today, innovation for tomorrow’.
The pilot will be managed by the Housing Corporation and will help prospective first time buyers who find that they are unable to access the housing market at the present time. Households who would normally be eligible to purchase a New Build Homebuy property will be able to rent that property at less than market rent for a pre-specified period. At the end of that time (or sooner if they are able) they will be given first option to buy a share of the property through the New Build HomeBuy scheme. The rent being charged will give households time to save for a deposit, or for their financial circumstances to improve sufficiently, for them to enter homeownership via New Build Homebuy.
An evaluation of the success of the pilot scheme, including whether there are opportunities for a Rent to Homebuy product to offer a wider choice in the intermediate market on a longer term basis, will be carried out at the end of the current financial year.
The Minister also announced today that the national clearing house launched just two weeks ago has already taken two offers through the process. The Corporation is in discussion with a number of other major house builders about further offers.
The Minister confirmed today that the £200m which may be used to purchase unsold developer stock is not capped and should properties at the right price, in the right locations and offering good standards be available, additional allocations may be made.
The clearing house builds on the Corporation’s track record of working with the private sector to deliver affordable housing. The Corporation is also announcing today its support for Bellway’s latest scheme in the north east is at Wheatridge Park in Seaton Delavel. Bellway will develop 44 new homes for shared ownership and rent in partnership with Blyth Valley District Council and Riverside Housing Association.
Housing Corporation Chief Executive, Steve Douglas, said, “The announcements made today are welcomed. We believe that a Rent to Homebuy option will be attractive to customers in the current market and will help associations and developers manage their sales risk. Through the clearing house we are having positive discussions with many of the major house builders to discuss options for bringing unsold new homes into the affordable housing sector.”
For more information on the Housing Green paper visit: www.communities.gov.uk
Ends.
For more press information please contact Sandra White on 020 7393 2094 or Terry Sefton 020 7393 2118.
Notes to editors:
1)The Housing Corporation is the Government's national affordable homes agency, responsible for investing in new affordable homes and regulating nearly 2,000 housing associations who provide some two million homes across England.
2) The Corporation's £8.4 billion investment programme for 2008-11 is its biggest ever, set to fund at least 155,000 homes. Over 100,000 of these are for affordable rent and more than 50,000 for affordable sale through the Government's HomeBuy initiatives, helping people get a foot on the property ladder.
3) The Housing Corporation is working with Communities and Local Government and English Partnerships to establish the proposed Homes and Communities Agency and Tenants Services Authority.
