L&Q unveils plan to shift homes for sale
Share
Housing group London & Quadrant has unveiled a Homes and Communities Agency-backed drive to shift homes intended for sale.
The Uptoyou scheme will allow would-be buyers to either rent homes at a sub-market rate, buy a share and pay a reduced rent on the remainder, or buy outright. Tenants will be able to increase their stake in homes at a later date if they desire, and eventually buy the property.
The London Board of the Homes and Communities Agency, which is chaired by mayor Boris Johnson, has put up £42 million to back the scheme. Uptoyou is part of the mayor’s First Steps low cost homeownership initiative, which was announced in his manifesto.
The money will bring around 500 homes onto the market, and will also allow progress on a further 800 homes for affordable rent that are on development sites delayed by a lack of demand for the for sale element of the build.
L&Q chief executive David Montague said the scheme would be open to buyers who qualify for other types of shared ownership scheme by having a household income of less that £60,000.
‘It is a new initiative but it has been in gestation for quite a few months now,’ he said. ‘It is responding to the issue that some people haven’t got the confidence or the cash to buy.’
Mr Johnson said the scheme is an example of his First Steps initiative to get first-time buyers back into the market.
Sir Bob Kerslake explains how the HCA is kick starting stalled regeneration work in London
Have your say
You must sign in to make a comment
Readers' comments (2)
Mr Danny Hardie | 03/03/2009 2:54 pm
Dear Sir/Madam, I work as a welfare benefits adviser, and this is a personal opinion which would not necessarily reflect those of my employer. Whilst clearly assistance towards helping low income groups find housing and consider home ownership is a positive idea, there are major areas of concern. Firstly, part buy part rent would appear to put all of the responsibility onto the part tenant/part owner whilst a part - landlord simply enjoys the rent for providing nothing in return. There is no assistance if major works to the property is needed, and whilst household insurance is an option - this isnt made clear to the client group, and bearing in mind this cost, a mortgage and the rent isnt as attractive as it seems. The overall costs over 25years of part purchase work out far higher than saving a deposit and buying outright. Please tell me if i am wrong about this, but to my mind Social rent over say four years, on condition that payment into a deposit account is made would make far more sense. This would enable a client to come away with a deposit, and if the market had risen too high - a further contract could be entered into. If not then the tenancy could either end - or a market rent then be charged. I feel this is a far more attractive option.
Unsuitable or offensive? Report this comment
michaelbarratt | 03/03/2009 7:04 pm
PART BUY COUNCIL HOUSING : 10per cent tenant ownership =100 per cent repair on tenant's account and no improvements - good deal?
Unsuitable or offensive? Report this comment