Generation Rent hits out at Labour’s ‘Freedom to Buy’ initiative

Generation Rent has criticised Labour’s newly announced ‘Freedom to Buy’ initiative which aims to help more than 80,000 young adults move out of their parental homes and onto the property ladder within the next five years.

However, the tenants’ campaign organisation says the scheme overlooks the struggles of renters.

The initiative is designed to aid first-time buyers who find it challenging to save for a substantial deposit and cannot depend on monetary gifts from family members.

It will offer a permanent mortgage guarantee scheme to assist working individuals in securing a mortgage and purchasing a home.

‘Renters deserve security too’

The organisation’s chief executive, Ben Twomey, said: “Renters deserve security too. While attention to the housing struggles of young adults is welcome, our work or personal circumstances mean not all of us are able to live at home with parents until we save enough to buy our first home.

“12 million people are privately renting right now and more than half of us have no savings at all.

“Trying to put aside a house deposit while renting is like pushing a boulder up a hill that keeps getting steeper and steeper.”

‘Government must slam the brakes on soaring rents’

Mr Twomey added: “The next government must slam the brakes on soaring rents by limiting the current free-for-all that’s forcing a third of renters’ incomes straight into the pockets of landlords.

“This proposed scheme would make permanent the existing ability for people to buy their first home with just a 5% deposit.

“But 5% still means £12,497 on the average first time buyer mortgage, and as much as £21,669 if looking to buy in London.

“If rent rises continue to outpace wage growth, more tenants could face homelessness than benefit from this scheme.”

Statistics reveal that 50% of young first-time buyers currently receive financial assistance from their families to purchase their homes, with an average gift of £25,000.

Homeownership is now twice as likely for children of homeowners compared to those of renters.

Get young people to move out of their childhood bedrooms

Labour also says that more new homes need to be built to get young people to move out of their childhood bedrooms – and they want to build 1.5 million homes over the next Parliament.

Labour leader Keir Starmer said: “My parents’ home gave them security and was a foundation for our family.

“As Prime Minister, I will turn the dream of owning a home into a reality.

“Our changed Labour Party will be on the side of the builders not the blockers, to get Britain building again.

“My Labour Government will help first-time buyers onto the ladder with a new Freedom to Buy scheme for those without a large deposit, and by giving them first dibs on new developments.”