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CONCERN FOR TENANTS IN RENTS-TO-MORTGAGE SCHEME

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Council tenants are to be given a new way to buy their homes, the Financial Times reports (p9). ...
Council tenants are to be given a new way to buy their homes, the Financial Times reports (p9).

The rents-to-mortgages scheme was launched yesterday by Sir George Younge, the housing minister, and is aimed at the 1.4m council tenants who pay full rent and secure tenants of non-charitable housing associations.

Under the scheme, tenants will pay two-thirds of the cost as regular mortgage repayments based on their current rent level, and pay the final amount, less a discount, when they sell the property.

The scheme is criticised by the ALA, the Labour Party and others, who claim that council tenants who have already bought their homes find it hard to sell because banks and building societies are unwilling to lend against ex-council flats. Critics are concerned that tenants who take up the new scheme could end up losing their homes if interest rates rise.
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