A new programme offering people the chance to pay less rent on their new home in order to save up for a deposit to buy it is set to launch in Liverpool.
The city council’s housing firm Foundations is expected to have its rent to buy scheme approved by the cabinet next week, with the aim of helping more people get on the property ladder.
The policy for first-time buyers - funded by government money - will mean people are able to rent a home at 80% of the market rent while saving the other 20% towards a deposit for a mortgage on it.
They will be given the option to buy the home after 12 months, and up to five years at a “fair” market price - based on an independent valuation at the time of purchase.
Foundations was one of the flagship housing policies for the Mayor of Liverpool Joe Anderson, and the pilot project will initially involve 14 new homes in Dingle.
It’s thought demand will be high straight away, and Foundations has said it will work to offer new homes under the scheme “in the coming months and years”.
The firm’s chief executive Mark Kitts said: “We can make a real difference to people’s lives by giving them an opportunity they would not otherwise get to buy a home for themselves and their families.
“It gives people a stake in their communities and helps us in our broader ambitions to improve neighbourhoods and improve the quality of the city’s housing.
“At this stage we are only able to offer 14 homes under the scheme. We understand that demand might be far in excess of that so we will be working hard to offer new homes under the scheme in the coming months and years.
“Our promise is to be as fair as we can be in making these opportunities available to people who register their interest.”
The programme will be available to people who live or work in Liverpool and are either first time buyers or people who have had to sell a home because of a relationship breakdown. Other criteria include being in work but unable to buy a home on the open market because the household is unable to save a sufficient deposit due to living costs.
The scheme being launched is subject to agreement by Liverpool City Council’s cabinet at its meeting on June 21, with 14 new family homes at Harrington Row, Park Street, Dingle, the first to be included.
Foundations wants to either deliver or start a number of projects across the city over the next two years. These will deliver a mix of affordable and family housing, including apartments, for both sale and rent, as well as bespoke properties for the homeless, foster carers, large families, the elderly and people with a disability.
The company’s rent to buy launch follows news that the city council intends to begin building council homes again for the first time in 30 years.
Mayor Anderson said: “The work of Foundations and the new rent to buy scheme complements our council house building plans. Buying is not for everyone, for a range of reasons, so it is important that we do what we can to help people in every situation to get the home they deserve.”
The local authority is expected to reveal more details of its council housing plans in the near future, but has already identified a site in Yew Tree, a former council-owned housing estate, where 120 new homes are set to be built.
The council also said Foundations is “fundamental” to addressing the city’s need to develop 30,000 new homes by 2030.
The firm recently announced plans for a high-quality, housing-led regeneration project in Kirkdale which could see the creation of affordable new homes, community facilities, elderly care accommodation, an eco-park and a new boxing academy.
Frank Hont, Chair of Foundations, said: “Foundations has the potential to transform the lives of thousands of families in our city. We want to rebalance the city’s social housing stock, revolutionise the rent to buy sector and drive up council tax receipts for the council.”
