Rent now buy later 'too complicated'

The government's 'rent now buy later' scheme must be simplified to encourage buyers, a mortgage advisor has claimed.

Helen Adams of FirstRungNow.com believes that the Rent to Home Buy scheme could confuse home owners, and that a simpler stamp duty holiday would encourage buyers back into the market.

The project, announced earlier this month by the housing minister Caroline Flint, applies to all first-time buyers with an annual household income of less than £60,000.

Eligible homeowners would be able to rent at 80 per cent or less of the going rate for two to three years to save for a deposit.

"It won't make a big difference. I think first-time buyers would rather see something simpler targeted at them, like the removal of stamp duty," said Mrs Adams.

"The 'rent now buy later scheme' takes a lot of researching and understanding but stamp duty will be immediately recognised," she added.

The government hopes that this program will help 75,000 first-time buyer households on to the property ladder.

Mortgages News posted on 30/07/2008 13:51:46