Rebecca Evans, Minister for Housing and Regeneration
As Minister for Housing and Regeneration, my overarching priority is the provision of good quality housing for the people of Wales. Our ambition, as outlined in the Welsh Government’s national strategy, Prosperity for All, is that everyone in Wales should have a safe, affordable home which supports and promotes a prosperous life. For many people, this aspiration will be achieved through home-ownership. Rising house prices and higher deposit requirements have, however, made it more difficult for potential home buyers to get their foot on the housing ladder. We are committed to improving the range of options available to those who wish to own their own home.
As part of this work, I am today committing £70m of funding to support the launch of two new schemes, Rent to Own – Wales and Shared Ownership - Wales, which will in different ways offer the opportunity of home ownership to households who can afford the monthly mortgage payments but do not have the level of deposit normally required to purchase a home.
Rent to Own – Wales Scheme Design
Under Rent to Own – Wales, aspiring buyers will pay market rents for new-build homes from participating housing associations, and will have the option to purchase these from the end of the second year of their rental period.
Upon exercising the option to purchase, the aspiring buyer will be gifted an amount equivalent to 25% of the rent they have paid and 50% of any increase in the value of the home, to use as a mortgage deposit. This will help them to purchase the home that they are renting.
Shared Ownership – Wales Scheme Design
Shared Ownership - Wales is a part-buy, part-rent scheme suitable for aspiring buyers who have some deposit but are unable to obtain the level of mortgage to purchase the home outright. Aspiring buyers can purchase an initial share of 25% to 75% of the value of new-build homes, which are available for this scheme from participating housing associations.
They can staircase up to full ownership at any time. Rent will be payable on the un-owned share.
Funding will be provided to participating landlords this year to start building new homes for Rent to Own – Wales and Shared Ownership - Wales. A small number of homes are currently available for both schemes, but more will become available over the next few years.
Today, I am also launching the new Your Home in Wales website. This essential tool will provide key information on all Welsh Government funded home ownership schemes to anyone wanting to become a home-owner. This clear guidance will help them to decide which scheme is best suited to their personal circumstances.