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Lib Dems unveil tenancy loan scheme for young renters

by: Samantha Partington
  • 10/04/2015
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Lib Dems unveil tenancy loan scheme for young renters
The Liberal Democrats have announced details of a scheme which will allow renters to borrow up to £1,500, or £2,000 in London, to put towards a tenancy deposit.

According to the party’s research, two million young working adults still live with their parents despite being in paid work and struggle to raise the money for deposit, typically one or two months’ rent, without family help.

The Lib Dems claim the knock-on effect of having young working adults in the family can also lead to parents having to upsize or delay the downsizing of family homes to accommodate older children, clogging up availability of family homes.

Help to Rent will be available to tenants aged between 18 to 30, in paid employment and not already in ownership of a home or looking for social housing.

Loans can be paid over one or two years and once paid off the money could be put towards future rental properties.

The scheme has been welcomed by the British Property Federation which said the government loan would stop young people turning towards riskier financial sources.

“Young renters often do not have a credit history and therefore struggle to raise a deposit. This welcome policy will help more people into their first homes and stop them having to raise funds through payday lenders and other risky means,” said director of policy Ian Fletcher.

 

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