This week saw the publication of the fifth Generation Rent Report by the Halifax. The full report can be found here: http://www.lloydsbankinggroup.com/globalassets/documents/media/press-releases/halifax/2015/150407-halifax-generation-rent-report_final.pdf
Since the publication of the first report, first-time buyers have increased, but there is also a growing number of people aged 20-45 who do not believe they will ever own their own home.
The report is based on interviews with over 40,000 potential first time buyers and shows that many potential first-time buyers believe that banks don’t want to lend to first time buyers and that the deposits required are still 10% and above. In fact, the report states that there are currently over 100, 95% loan to value mortgages available to first time buyers.
QSH is addressing the issue of affordability for first time buyers. QSH is working with Local Authorities, Housing Associations, house builders and other housing organisations to build rent-to-buy properties, we are currently developing bungalows, flats and 2, 3 and 4 bedroomed homes. The properties are rented to households at market or affordable rents. Half of the rent the tenant pays counts towards a deposit for the property, up to a maximum of 10% of the market price of the property. The property can be purchased within the first 5 years. If the tenants are unable to buy the property within that time, they can continue to rent.
Our first properties in Kirklees have been incredibly popular and we hope to increase the number of rent-to-buy properties in Kirklees to over 70 in the near future. Tenants on our first scheme have begun the process of purchasing their homes.
QSH will very shortly begin the construction of 150 of rent-to-buy properties in Glasgow and Doncaster with further schemes being announced very shortly.
If you are interested in renting/purchasing one of our properties or are a housing organisation wishing to provide this type of housing, please contact Nicola Clayton at [email protected]