Lib Dem manifesto to include rent-to-own policy

Would-be housebuyers unable to save for a deposit would be offered the opportunity to buy their own home at market rental rates under plans to be unveiled by the Liberal Democrats.

The plan will be included in the party's general election manifesto unveiled this evening, along with a range of policies aimed at helping young people, says the BBC.

"As part of its housing offer, it will promote a scheme in which those renting a property will be able to build up equity with every monthly payment, which they will eventually be able to convert into full ownership after 30 years," adds the broadcaster.

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A "rent-to-own" policy was first proposed at the 2015 election, when the Lib Dems said they had wanted to introduce it during their time in the coalition government but had been blocked by the Tories.

In effect, the policy is a subsidised home purchase scheme for those struggling to afford a deposit.

"Tenants" would not need to put down money in advance and the government would subsidise monthly payments so they are contained at market rental rates. Each monthly payment would accrue a chunk of equity in the property.

"Developers and housing associations building thousands of new homes [would be] underpinned by loans and guarantees from a new Housing and Infrastructure Development Bank," adds the BBC.

"The total capital investment in the initiative, part of the Lib Dems' plans to build 300,000 new homes a year will be £3bn by 2022."

The manifesto, which will be unveiled this evening, will also promise to reverse cuts to housing benefit for those aged 18 to 21, offer discounts on bus ticket for 16 to 21-year-olds and boost funding for schools.

Full costings will be included in the policy document, but the party has already said money will be raised by upping corporation tax to 20p, less than the 26p proposed by Labour.

They will also add a penny to all rates of income tax and the dividend tax to fund new investment in the NHS and argue that averting a hard Brexit and staying in the single market will free up billions of pounds of lost tax revenue.