The government has just announced a raft of measures designed to breathe some life into the housing market, primary of which is a “rent first, buy later” scheme. 

The pilot project will be open to some in
England with household earnings under £60,000. They would rent the property at a discounted rate for two or three years, with an option to buy part of it.  

A first-time buyer couple on low incomes must save a year’s worth of their take-home pay to buy their first home, the Royal Institution of Chartered Surveyors (Rics) said last week.  

A couple in the bottom quarter of earners in the UK would need £27,738 to pay the upfront fees even before paying any of their mortgage, Rics said. Under the government’s plans, households earning £60,000 or less would be able to rent at 80% or less of the going rate for two or three years in order to save up for a deposit.  

They would have an option to buy 25% or more of the property at any time under the scheme, called Rent to Home Buy. The government had previously extended the shared ownership scheme from key workers to those households earning £60,000 or less.  

The government hopes that this scheme, alongside others, will help 75,000 first-time buyer households on to the property ladder.

It is worth noting, however, that the scheme is only open to residents of
England, with other parts of the
UK currently left out despite fears about the property market extending right across the country.

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