Rent now, buy later scheme 'could be a great opportunity'

A scheme proposed by the government in a bid to help first-time buyers get a foot on the property ladder could be a great opportunity for those who qualify, it has been claimed.

This is according to Paul Holmes, chief executive of financial advisory service Firstrung, who said that although he is waiting for the full details before he reserves judgement, it does seem like a good idea for first-time buyers.

The government has set out a new rent now, buy later scheme which will allow households earning under £60,000 to rent at 80 per cent or less of the going rate for two or three years in order to save up for a deposit.

"I have to say, on the face of it, the system appears to be sound. So far there doesn't appear to be a sting in this tail and it does appear to be quite a laudable concept that the government are pioneering," Mr Holmes commented.

"If you do fall under the umbrella of being applicable for the scheme, then again, on the face of it without having seen thorough detail…it sounds a terrific opportunity."

However, he added that there will still be large number of would-be buyers that are priced out of the market as they may not qualify for the scheme.