From This is Money:
Around £115m has gone on Rent to Homebuy since it was launched in July last year. It pays part of people’s rent for up to five years while they save for a deposit.
But nobody who signed up has actually managed to buy their own home yet.
The Tories, who published the official figures, attacked the scheme as ‘incompetent’ and ‘a complete and utter failure’.
What is Homebuy Direct?
HomeBuy Direct is a shared equity scheme that the Government said would help first-time buyers and house builders.
It operates on specific new build properties from developers. Buyers borrow at least 70% of the properties value on a mortgage with a further equity loan of up to 30% of the purchase price, split between the Government and developer.
There is no charge on the equity loan for the first five years, after which the developer charges a 1.75% annual fee on its portion of the loan.
Buyers can buy out the extra equity in instalments. If they do not buy the rest of their equity and sell…