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Party comes up with rent-to-own policy

NZ Newswire logoNZ Newswire 7/06/2017

United Future leader Peter Dunne has come up with a rent-to-own housing policy designed to help people who are struggling to raise a deposit.

He's suggesting half the 20,600 new homes the government is going to build in Auckland could come under the scheme.

"That would provide a new opportunity to people who have difficulty in meeting the financial requirements around buying a house," he said on Wednesday.

"We would offer these houses as rental properties that people could lease, provided they lived in that property and paid market rent."

Under the scheme, a portion of rent would cover fixed costs, such as rates, and deliver some revenue for the government.

The balance of the rent would count towards buying a share of ownership in the house.

When the tenant owned enough of the property to count as a deposit, they would be offered title and would then have to raise a mortgage.

"A generation of New Zealanders are facing the prospect of home rental for the rest of their lives and this policy would put them on a pathway towards home ownership," Mr Dunne said.

"The rent people pay would be accumulated as savings earmarked for a home deposit - we want to see specific targeting of people who are struggling to save for a deposit and pay rent at the same time."

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