Intermediate Market Rent scheme - good idea?

jaredashe

Sorry if this has been posted before.

Me and partner are hoping to at some point get on the property ladder but (unsurprisingly) don't have much of a deposit and are strugglinh to raise the cash.

The government run a scheme called Intermediate Market Rent whereby you move into an allocated property (usually new build flats in areas being redeveloped) and pay rent around 20% below the market rate, the idea being to allow you to save for a deposit.

Sounds great on paper and we are seriously considering it, just wondering if anyone has any experience of this scheme, either good or bad? Any thoughts would be helpful as it's a very confusing time for first time buyers.

Thanks

jaredashe

Nobody has any thoughts?

DaddyBear

Thoughts???

1. I was wondering where all my tax is going.
2. Depends what they consider the "market rate".
3. I'd check out what kind of neighbourhood it is.... it could well be glorified social housing.

jaredashe

1. If you consider no tax should go towards assisting housing needs for the lower income parts of society I'm not sure this is the right country for you to be living in.
2. Market rate is based on averages for the area and assessments, I expect. Rents are certainly lower than similiar properties in the area.
3. Agreed - the enighbourhoods tend to be areas earmarked for redevelopment, which can mean not the nicest of areas. East London has a lot of new builds, for example.

I was really hoping that somebody who had undertaken the scheme could give any pros or cons. Any help is always useful!

Fire_Fox

You'd get a better response if you posted a link to the scheme, people can't always be bothered to have to use Google before they can even attempt to help you.

jaredashe

Thanks - that's a good idea.

The details for the scheme can be found here: http://www.housingoptions.co.uk/ho2/ho2/what_is_IR.asp

One of the problems is, however, that the information to be found online and in brochures is not particularly useful in terms of real details - they sell it all very well, would like to know if there are any cons.

If not then no worries!