CIH Cymru welcomes new Rent-to-Own and Shared Ownership Wales initiatives
The Minister for Housing and Regeneration Rebecca Evans has launched two new initiatives aimed at increasing the rate of homeownership in Wales for those who may not be in a position to afford and save for a deposit.The Welsh Government will spend £70m on the two projects before 2021.
Rent-to-Own Wales will allow buyers to rent new-build homes from housing associations, allowing them to purchase it during the second year of the rental period. A quarter of the rent paid, and 50% of any increase in value of the home, will be gifted to the buyer to use as a mortgage deposit.
Shared Ownership Wales will allow 25-75% of a housing association home to be bought by buyers unable to obtain the level of mortgage needed to buy a home outright.
Responding to the announcement Matt Kennedy, policy and public affairs manager at CIH Cymru, said:
“The launch of Rent-to-Own Wales and Shared Ownership Wales brings the ambition that many hold, of owning a high-quality, safe, affordable home forward into reality. These products will clearly help those who struggle to save additional money while also meeting the cost of living and paying rent. With our supply of social housing under so much pressure, this is a step forward in increasing the effectiveness of those homes while also maximising the opportunities to increase home ownership in Wales.”