Chancellor Philip Hammond to launch new type of housing tenure
The government is considering launching a “buy as you go” housing scheme to give renters the chance to buy their own property after 25 years of paying rent.
Chancellor Philip Hammond is expected to announce the new type of tenure in this month’s autumn statement, with details in a housing white paper afterwards, according to the Guardian.
Buyers would not need to pay a deposit or arrange a mortgage, instead building up equity in their homes over time, the report says.
Rents under the scheme would be about 90% of the local market rate, with a split between rent and equity payments.
The news came as business lobby group the CBI called on the government to take “bold steps” to tackle the housing crisis in the Autumn Statement.
Recommendations included expanding the rental sector and giving incentives to older homeowners to move from large properties.
Josh Hardie, deputy director general of the CBI, said: “If we are going to more than double the number of homes built each year, we need a step-change – not just in delivery, but in mindset. Business as usual isn’t an option.”
The CBI’s key recommendations
- A strategic housing plan from the Department for Communities and Local Government, with the forthcoming white paper on housing being integrated and joined up across Whitehall and beyond
- Government help for small and medium-sized enterprise (SME) housebuilders through improved release of small sites of public land and making access to finance easier, by rolling out its Home Building Fund
- Recognising the importance of and improving the attractiveness of the Private Rented Sector.
- Government should give greater flexibility to Housing Associations, and increase capital spending on affordable housing
- The National Infrastructure Commission include housing as a strand within its forthcoming National Infrastructure Assessment
- Exploring the value of broadening the category of new homes that can be built on brownfield sites within the Green Belt
- Joint collaboration between new players in the market – from hedge funds to construction contractors – and established industry experts, as well as further support for innovation in the sector, such as off-site manufacturing.