Currently, over a third of Millennials cannot buy a house on their own as it’s too expensive, especially with the average price tag on a home in Great Britain topping £350,000!
Property expert and CEO of iPlace Global, Simon Bath, spoke to “This is Money” about the Right to Buy scheme and how it could help get the younger generation onto the all-exclusive property ladder.
This blog gives you the low-down on the scheme and how it could benefit aspiring homebuyers.
What exactly is the Right to Buy scheme?
Boris Johnson has announced his plans to bring back one of Margaret Thatcher’s famous schemes by giving millions of people the right to buy the homes they rent from housing associations.
This could likely affect around 2.5 million households in England who rent properties from associations and give them the chance to purchase them at a discounted price.
Currently, Right to Buy lets most council tenants buy their homes at a discount – but tenants have limited discounts and can only buy a property acquired by an association since 1997. The Prime Minister’s new plan is to widen the scheme to all housing association tenants.
Similar to the current scheme, tenants could get a discount of up to 70% of the market price, depending on how long they have lived in the property.
Who would benefit from the scheme?
We recently conducted a landmark study and found that the younger generation finds it increasingly difficult to step onto the property ladder. In fact, 36% of Brits aged 25-34 are waiting to get in a partnership/marriage before purchasing their first home because they simply can’t afford it on their own – this number rises to 40% for those aged 18-24!
The Right to Buy scheme could provide the perfect solution for first-time buyers that are looking to step onto the property ladder but can’t afford to currently.
A step in the right direction for generation rent
As the cost-of-living crisis continues to impact millions of people across the UK, the Prime Minister’s announcement could potentially act as a stepping stone for young people that are stuck in the cycle of renting.
Whilst the Right to Buy scheme could help millions of Brits achieve their dream of buying a home, experts believe that more social housing should be built so that there are still options for those who may not be able to buy and need it most.
Ready to step onto the property ladder?
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