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.
The schemes are not just available to first time buyers but eligibility criteria apply, including a requirement for applicants to have a combined annual household income of £60,000 or less.
Minister for Housing and Regeneration Rebecca Evans said, “Help to Buy Wales has successfully supported many people in Wales who have a 5% deposit to buy their own home. However, we know there are many hard-working people who find it hard to save a deposit. We are committed to supporting people to take that difficult first step into buying their own home in Wales.
“There are currently a small number of properties available to buy through Rent to Own – Wales and Shared Ownership – Wales, and we are working with housing associations throughout Wales to ensure that more will be available soon.”
Hayley Macnamara, Policy and Programmes Manager at Community Housing Cymru said, “As a sector we are committed to meeting the target to build 20,000 affordable homes by 2021, and are working closely with the Welsh Government to develop effective models such as Rent to Own that will help us achieve our vision to make good housing a basic right for all.”
Matt Kennedy, policy and public affairs manager at CIH Cymru, added, “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.”