Lib Dems announced “Help To Rent” scheme

The Liberal Democrats have announced plans for a new Help to Rent scheme to support young workers move out of their family home and into a rented property.

Research shows that around two million young working adults still live with their parents despite being in paid work.

The party said that rising rental costs mean that many young workers can't afford the money needed for a tenancy deposit of the one to two month's rent expected up front unless they have financial help from their parents or friends.

Under the proposed Help to Rent scheme, young working people in England will be able to borrow up to £1,500 (£2,000 in London) from the government to go towards their tenancy deposit.

To be eligible, tenants would need to be between 18 and 30-years-old, in paid employment and not be home owners or seeking social housing tenancy.

Loans could be paid over one or two years and once paid off, could be used for future rental properties.

Launching the scheme, deputy prime minister and leader of the Liberal Democrats Nick Clegg said: "Increasingly we see young people stuck in the family home as they can't afford the upfront costs of a deposit to rent a property despite having a paid job.

"It's simply unfair that thousands of hard-working young people still have to live in the same bedroom they lived in when children.

"When you get your own job, you want to stand on your own two feet, have your own space, and not have to rely on the bank of mum and dad.

"Our Help to Rent scheme removes this barrier to young people's independence, providing access to up to £2,000 towards their tenancy deposit so they can fly the nest and rent their own space."

Matt Hutchinson, director of flat and house share site SpareRoom.co.uk, said the plan was a great example of a housing policy driven by what real people need.

“It takes a similar scheme, already in place in the capital, where deposit loans are offered by employers and paid back monthly through salary deductions, and makes it available to all renters, regardless of where they live,” he said.

"Getting a deposit together is tough and, all too often, renters wanting to move house need to find a new deposit before they get their old one back. The ability to borrow from the Government will really help those starting their housing journey but also young renters who need to move, helping our workforce stay flexible.

"All too often policy is aimed at helping a few people deal with the huge affordability gap, rather than providing practical solutions. We must address affordability in the long term but sensible, practical policies to help in the meantime are also vital.”

http://www.landlordtoday.co.uk/news_features/Lib-Dems-announced-%E2%80%9CHelp-To-Rent%E2%80%9D-scheme