Millions of renters could be given right to buy homes at discount price

MILLIONS of renters could be given the right to buy their homes at a discount price.

Boris Johnson is considering making 2.5million Housing Association homes available to buy through the scheme, according to reports.

Millions of council tenants were given a discount to buy their home through the Right to Buy scheme launched in the 1980s by Margaret Thatcher.

Now Mr Johnson is considering similar plans for more than 2.5million properties rented through Housing Associations, the Telegraph reports.

It could help a generation of first-time buyers locked out of the housing market because of rocketing prices get on the property ladder.

A government insider told the newspaper: "The Prime Minister has got very excited about this. It could be hugely significant.

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"In many ways it is a direct replica of the great Maggie idea of ‘buy your own council flat’. It is ‘buy your own housing association flat’."

The plans to help "generation rent" come ahead of local elections on May 5 this week.

Fed-up Red Wall voters are ­running out of patience with a ­government dogged by the Partygate scandal — with the Prime ­Minister facing a battle to keep them onside.

With the current Right to Buy scheme, council tenants a can buy their home at a discount of up to £116,200 in London and £87,200 in the rest of England.

They need to have lived in their property for three to five years already to qualify for a 35% discount.

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There's an extra 1% that can be claimed for every year after that (up to 70%).

It was originally introduced by Margaret Thatcher through the Housing Act 1980.

You’ll usually have to repay some or all of your discount if you sell your home within five years, or all of it within the first year.

Any similar scheme for Housing Association tenants would still need to be created and passed into law, and that can be a lengthy process.

Millions of renters face hurdles getting on the property ladder, including sky high house prices.

Higher house prices are a problem because it means you need to save even more for a deposit to be in a position to buy.

And the cost of living crisis is also putting pressure on future homeowners.

Incomes are squeezed meaning many are not able to save as much to buy their first home.

And mortgage lenders are factoring in these higher costs when deciding how much people can borrow.

Typically, mortgage providers will only lend you a maximum of four times your annual salary, or three times your joint income if you're buying as a couple.

Most lenders also want you to have at least 5% of the property price as a deposit.

Interest rates are also set to rise and that means mortgage repayments will get more expensive.

Existing schemes to help first-time buyers on to the property ladder include Help to Buy and Lifetime ISAs.

Savers can get up to £32,000 free cash bonus with a LISA and through Help to Buy can put down just a 5% deposit for a new build home.

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A new scheme recently launched helping homebuyers get on the ladder with a 5% deposit.

The Deposit Unlock scheme is open to first-time buyers and second-steppers purchasing a new build property worth up to £750,000. 

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