A scheme has been launched in Barking and Dagenham to help tenants get on the property ladder.
The council’s cabinet approved on 28 June 2016 the introduction of Right to Invest.
The scheme will support tenants in council houses who wish to buy their home: it will allow them to purchase a share of the property – between 25% and 70% - and pay the rest as a percentage of their rent.
This will reduce the amount of mortgage council tenants on low incomes need, as they will only have to borrow money for the share of property they wish to own rather than the full value of the home.
Right to Invest will be available to all council tenants who meet the Right to Buy criteria. The scheme enables people who have spent at least five years as public sector tenants to buy the property they live in at a price lower than the full market value. The Right to Buy discount will apply to the portion of property the tenants will buy.
Barking and Dagenham is the first council in the country to adopt the scheme.
Councillor Darren Rodwell, leader of the council, said: “London’s ridiculously expensive property market has meant the idea of home ownership for most ordinary people is just a pipedream.
“Barking and Dagenham has the lowest level of owner-occupation in London, so it is important that we help those on low incomes to get a foot on the housing ladder. This will also help create a stable community where no-one is left behind.”
More details on Right to Invest can be found here.
The City of London Corporation is about to buy Barking Power Station site in east London for around £125 million, according to Property Week.
A £25 million grant for Barking and Dagenham Council will help it support new housebuilding over the next four years.
Councillor Darren Rodwell, the leader of Barking and Dagenham Council, has welcomed the decision to approve the proposed Beam Park…