While you may be considering extensions for your Liverpool home, for some homeownership alone is enough of a challenge. However, City Mayor Joe Anderson has launched a new scheme which he hopes will help more of Liverpool’s residents get on the housing ladder.
According to LBN Daily, the ‘ethical’ housing project, called Foundations, will aim to provide rent to buy housing options for low-income families. The scheme aims to create 10,000 new homes across Liverpool in the next decade with investment worth at least £1 billion.
The rent-to-buy scheme will mean that approved tenants will pay a reduced rate, allowing them to save up the money for a deposit to buy the property which they are renting.
Foundations, which is the brainchild of the mayor, is part of his recognition that saving up for a deposit can be the biggest hurdle to homeownership, but rent to buy won’t be the only option available. “I have also asked the Foundations team to explore other financial incentives and by the time homes are available to buy in 2019 there will be an opportunity for some of those, assessed on a per scheme basis, to be available rent to buy or through an alternative incentive,” he said.
Not only will this benefit Liverpool’s residents, but also its businesses, as Mayor Anderson has pledged to use local firms to supply and build the properties. Liverpool’s local authority has set up a procurement framework for local contractors, which is thought to be up and running in the next two weeks.
Mark Kitts, Chief Executive of the new Foundations organisation, told Inside Housing that they would be looking to work with private developers and housing associations as part of the scheme also.
It’s also been made clear that the scope of the project will be city-wide, not just in up and coming development areas, ensuring homes are built in ‘challenged neighbourhoods’ as well as the city centre and waterfront areas. One such neighbourhood that will be a core focus is the regeneration of pre-First World War terraces that are in more run-down, less affluent areas of Liverpool.
Not only will this scheme benefit those already living in the city, but also those looking to move to the area and looking for affordable housing options. According to the Buy Association, Liverpool is one of the UK's most popular choices for young people, especially those priced out of London. The percentage of those living in Liverpool under 30 is 42 per cent, compared to a UK average of 37 per cent. They describe Liverpool as a city that's regeneration has been driven by youth and entrepreneurialism, and contemporary housing within reach of the city's vibrant cultural scene is important for attracting more young people to the city.
At present, it's yet to be determined whether Foundations will be given a housing association status, or whether the scheme will just continue to work with third parties in providing affordable housing options.
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