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Affordable rent tenancies 'could boost home ownership'
25/11/10
Edited by Bob Witham.Government plans to introduce flexible "affordable rent" tenancies could lead to a substantial increase in home ownership over the next decade or so, according to one expert.
Kate Allen, editor of Social Housing magazine, said the proposals represent a "major change" because they would include the right to buy and the right to acquire.
This suggests tenants are being "encouraged to move into home ownership pretty quickly" and those who receive the minimum two-year term will be likely to look at buying their residential property at the end of it rather than trying to rent again, she added.
"That could result in the sell-off of relatively large parts of the social housing sector relatively quickly," Ms. Allen commented.
Earlier this week, the Department for Communities and Local Government said affordable rent tenancies will be introduced in April 2011.
There will be no maximum length, so councils and housing associations will be permitted to set terms to suit the circumstances in their particular area.
Landlords will also be able to set rents at anywhere from typical social housing levels up to 80 per cent of charges in the local private market.
