The Liberal Democrats have proposed a new loan to help, what Nick Clegg calls, the “clipped-wing generation” afford to rent their first property.
With a predicted two million people aged 20 to 30 unable to afford the deposit for their first home, more and more young people are being forced to live in their childhood homes. The Liberal Democrat leader Nick Clegg has described the situation as “simply unfair”.
As a generation already burdened with student debt and increased competition in finding well-paid jobs, the Lib Dems offer of an extra £1,500 (or £2,000 if living in London) could help millions to get on the property ladder.
Clegg said: “When you get your own job, you want to stand on your own two feet, have your own space and not have to rely on the bank of mum and dad.”
The Lib Dems have also said that this loan will help to deal with the “big knock-on effect” caused by young people staying at home.
Clegg added: “It means that couples whose children have grown up are not downsizing as readily as they might because they have to keep large properties to maintain space for their kids.”
In order to qualify for the proposed low-interest loan, applicants must be aged 18 to 30, not be looking for social housing and be in full time, paid employment.
The loan is also expected to be paid back within two years; a factor that the Lib Dems have said will eliminate the loan from being classed as public expenditure. However, the party have said they would set aside £50 million as a contingency.
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