Lib Dems offer first-time home buyers 'no deposit' plan

Lack of a deposit is seen as a barrier preventing many people from buying their own home

Young people will be offered the chance to buy their first home without a deposit, under plans unveiled by the Welsh Liberal Democrats.

The party has pledged to make at least 2,500 "rent to own" homes available over five years to first-time buyers.

Lib Dem housing spokesman Peter Black said people should be able to buy their own home whatever their background.

Community Housing Cymru, which represents housing associations, said it welcomed help for first-time buyers.

The Lib Dems said it would use the Welsh government's existing Social Housing Grant scheme, an incentive for developers to build affordable homes for sale or rent by offering to meet around half of their costs.

Peter Black says family circumstances should not affect first-time buyers

Aspiring home owners in such developments would make monthly payments equivalent to rent to build up an increasing share in their home until they owned the property outright after 30 years.

Occupants would have the right to sell their home on the open market at any time, cashing in their share of the proceeds.

"This is all about equal opportunity," said Mr Black.

"Under our proposals, it doesn't matter what your background or family circumstance is, if you can afford your rent then we will help you own your home - something nearly everyone dreams of."

Sioned Hughes, director of policy for Community Housing Cymru, said housing associations had provided more than 600 intermediate rented or shared equity homes in the last year.

"It's a key aspect of creating sustainable communities," she said.

"We as a sector have a track record of adopting innovative models of finance and different options, and we are more than happy to explore further to ensure that the needs of the people and communities of Wales are met in the best possible way."

The Welsh Conservatives have said they will exempt first-time buyers from six months' council tax and from paying stamp duty on homes below £250,000 if they win the 2016 assembly election.