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Eddie_George

Nick Clegg Pledges Home Ownership With No Mortgage

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Tens of thousands of Londoners could become homeowners without taking out a mortgage under plans unveiled by Nick Clegg today.
The “rent to own” scheme would give some 30,000 people a year the chance to start off as tenants but become full owners after 30 years.
In an exclusive interview with the Evening Standard, the Deputy Prime Minister set out to steal David Cameron’s clothes as the champion of home ownership, saying the scheme would be “at the core” of the Liberal Democrat manifesto.
“The wish to own your own home, to create a family, have a roof over your head you can call your own, is a very profound dream,” he said.
His move comes ahead of next week’s Budget, when Tory MPs believe George Osborne will unveil an expansion of his Help to Buy scheme.
Under Mr Clegg’s alternative, families would not need to raise huge deposits demanded by banks for a mortgage.
They would pay a market level of rent to housing associations for specially-built properties on land unlocked by the Government. Each year, they would own a bit more of the home until after three decades they would own it outright.
Unlike ordinary tenants, the families would be responsible for maintenance and upkeep, just like owners. And they would have to prove they have a steady income, just like mortgage-seekers.
Mr Clegg said the “preponderance” of new homes under the scheme would be aimed at London, where millions of young people are kept off the housing ladder by punitive deposits.
“It’s not only unfair that dream is being pulled away from the younger generation, it’s also financially unsustainable,” he added. “Over a decade ago well over half of 24 to 35-year-olds were able to become owners of homes. That’s plummeted to 39 per cent.
“We are witnessing the beginnings of a generation who will end up being supported through the housing benefits system for years to come.” He said the plan could expand if successful.

The schemes keep a-comin'. Councils become mortgage providers.

http://www.standard.co.uk/news/politics/nick-clegg-pledges-home-ownership-with-no-mortgage-10106196.html

Edited by Eddie_George

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what happens if the renter dies before 30 years ? are the next of kin entitled to anything ?

Not sure, he only thought this policy up this morning.

Maybe it could be better than HTB because councils could make a profit, as releasing the land would cost very little.

Edited by Eddie_George

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Sooooooooo you have to stay there for 30 years? Is it transferrable and if so are there restrictions on the distance you'd like to move or are debts going to be transferred between councils now as well as banks? What happens re fluctuations in the value of the building and how does that equate to geographical differences? What's the interest rate proposal?

My new pledge: subsidised chocolate radiators for all.

“We are witnessing the beginnings of a generation who will end up being supported through the housing benefits system for years to come.”

Erm, not if someone does what's right for a change. It's just more debt introduced to solve the debt problem.

Free chocolate kettle with that rad, too.

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“We are witnessing the beginnings of a generation who will end up being supported through the housing benefits system for years to come.” He said the plan could expand if successful.

Is he saying that a lifetime of benefit dependency is a good thing?

30 years trapped in a new-build with a government-provided mortgage sounds like hell.

One more reason not to vote for the liar.

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At the last general election it was tens of thousands could have higher education without tuition fees.

There seems to be a pattern there.

They should just come straight out with it and change their name from the Libdems to the Something For Nothing Party.

For sure they'll have already decided they can't afford it if they get a sniff of power - although wait a mo it's house prices and their chums the banks and property developers etc.

To think that they've been helping to run the country for the last few years.

Edited by billybong

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In an exclusive interview with the Evening Standard, the Deputy Prime Minister set out to steal David Camerons clothes as the champion of home ownership, saying the scheme would be at the core of the Liberal Democrat manifesto.

At least you do get a laugh as you go along.

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Anything but let prices come down.

these *unts will do anything to keep them high , if they stayed at 2008 prices i would gladly pay that now

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Tenants pay upkeep and maintenance. However, the article mentions they will be specially built. So what they are constructing might not be able to take a mortgage out on.Can they be sold? Are they shipping containers?

Edited by Ash4781

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They would pay a market level of rent to housing associations for specially-built properties on land unlocked by the Government.
They've been going on about what a problem it is with builders sitting on land banks and now, just before the general election, they start on about how much land they themselves have got available for housing even in and around London that they can just "unlock" if you vote for them (as if).
If they have so much spare land under their control what's all the stuff about needing to free up planning etc.
Amazingly there'll be enough for 30,000 people a year in London - just vote for them.
It gets more incredible by the day.
Edited by billybong

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“The wish to own your own home, to create a family, have a roof over your head you can call your own, is a very profound dream,” he said.

The problem is Nick for must that is all it is, a dream. And why is that? Because the prices are just to ******ing high you ****.

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