In the UK, government ‘Rent to buy’ programs are ways to help lower income households to afford to buy a home. In Australia ‘Rent to buy’ contracts offered by private vendors are very different arrangements and have even been banned by one state.
What is ‘Rent to buy’ in the UK?
In 2015 the UK government instigated a ‘Rent to buy’ program to encourage low income households to save money while they are renting so that they will have a sufficient deposit to put towards buying a home in several years time. As part of the program, the UK government offered £400 million in loans to housing associations and social landlords to build 10,000 new homes for potential lower income rent-to-buyers.
In September 2016 the ‘Rent to buy’ program transformed to be part of the Shared Ownership and Affordable Homes Programme 2016 to 2021.
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