Tories to introduce 'lifetime' fixed rate mortgages to help renters get on property ladder
3 min read
The Conservatives have vowed to introduce "lifetime" fixed rate mortgages to make it easier for renters to get on the property ladder if the party wins the general election.
Under the plan, buyers would only need a 5% deposit to secure the keys to their first property.
Their mortgage payments would remain the same until it was paid off, meaning they would not be hit by spikes in interest rates.
Plans to build "at least" one million new homes over the next five years, as well as end no fault evictions, are also part of a raft of announcements aimed at voters struggling to buy their own place.
The party is also offering voters a 'First Home' scheme, which will sell properties at a 30% discount to first time buyers seeking a property in their local area.
Meanwhile, private tenants will be entitled to 'Lifetime Rental Deposits', which the Conservatives said could be transferred from one property to simplify the process and cut fees.
The pitch to renters came as Labour unveiled its own plans for a major expansion of council house building in a bid to tackle the UK's housing crisis.
Boris Johnson said the Tories had "always been the party of homeownership" but vowed that a majority Conservative government "can and will do even more to ensure everyone can get on and realise their dream of owning their home".
He added: "At the moment renting a property can also be an uncertain and unsettling business, and the costs of deposits make it harder to move. We are going to fix that.
"A Conservative majority government will empower renters and give them greater peace of mind. We will end no fault evictions, so that landlords can’t remove tenants without good reason, and introduce Lifetime Rental Deposits so renters don’t have to save up for a new deposit while their money is tied up in an old one."
Housing Secretary Robert Jenrick added: "We delivered one million homes in the last five years and we’ll deliver at least another million in the next five years.
"We’ll help renters make the leap onto the housing ladder and we’ll provide discounts for first-time buyers in their local areas."
The plans were given a mixed reception by housing charity Shelter, which said the clampdown on no-fault evictions would bring "stability and security" to tenants - but questioned the one million new homes target.
Polly Neate, chief executive, said: “The commitment to only build 200,000 a year when the Government’s own target is in fact 300,000 shows that even the Conservatives don’t think they’d be able to achieve this goal.
"The missing piece in their plan is any investment in new social house building – without this the housing emergency will continue to get worse."
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