Will Rent To Buy Scheme Help Liverpool People Purchase Homes?
There is no denying that work must be done to help people get on to the property ladder. There are many people who are happy to rent, but there are also people who are keen to buy property but find that they are unable to. However, a new plan that is being championed in Liverpool and has the backing of the council could bring changes to the way people buy homes.
One of the biggest issues in buying property is saving for a deposit. Many would-be buyers believe they can easily meet the demands of monthly mortgage payments, but it is the amount of money that has to be saved up in order to buy a home that causes the problem for many prospective buyers.
Work is being carried out to help people buy homes
Liverpool Council has plans to develop more than 10,000 homes in the city in the next decade and they have set up an organisation called Foundations. This is an organisation billed as an “ethical housing company” and it aims to provide tenants with the means to save money to buy the home they are living in.
The Mayor of Liverpool has discussed the difficulties many buyers face in saving the lump sum they require to buy property and he spoke to local press, saying; “We recognise that getting the cash together for a deposit can be a major challenge for many first time buyers so the new Rent to Buy scheme will play an invaluable part in addressing this problem."
The plan is built around people paying a reduced level of rent on Foundation properties, which in turn should help them put money aside to raise the deposit. This will, in turn, allow them to purchase the property that they are currently renting. The Mayor also announced that Foundations is looking for other ways in which they can assist the people of Liverpool to buy a home.
The Council is currently reviewing the eligibility for the scheme and it is believed that an announcement about the scheme is due in early 2019. No building work has started but planning permission is being sought for over 100 homes in Dovecot.
All assistance is of benefit in the property market
This sort of scheme isn’t going to be of benefit or assistance to everyone looking to get on to the property ladder, nor will it be of benefit to people currently looking to sell their home. However, there is an argument that anything which stimulates the Liverpool property market will offer benefits to everyone, so in this regard, it is something to keep an eye on.
However, the difficulties in saving money to pay for a deposit is obvious, and this is an area that people need assistance with. The Autumn Budget of 2018 vowed to make the Help To Buy scheme more relevant for first-time buyers, but there were concerns that not enough is being done to make it easier for first-time buyers to step on to the property ladder.
No matter what move you are looking to make in Liverpool, you will find that Peter Anthony is here and ready to help. If you would guidance and advice, get in touch and we will be more than happy to assist you.