First-time buyers scheme potentially “terrific opportunity”

The government’s scheme to help people get onto the property ladder may benefit some first-time buyers, an expert has said.

The Rent to Home Buy scheme announced recently by the government would allow certain households with an income of less than £60,000 a year to rent a property for 80 per cent or less of the market rate for two to three years, allowing tenants to save for a deposit for their own home.

People concerned about unaffordable rent resulting in debt management issues may be interested in the proposals.

While full details have not been released, the chief executive of First Rung, an informational website for first-time buyers, said the scheme “doesn’t appear to be a sting in [the] tail”.

However, Paul Holmes went on to say not everyone would qualify for the scheme.

“Whilst some priced out first-time buyers may feel encouraged by the scheme, there’s a vast amount that will still be priced out and this concept will not be applicable to them,” he commented.

This month prime minister Gordon Brown pledged three million new homes would be built by 2020.

By Morwenna Kearns