Give young homebuyers state loans for deposits, urges report - The Observer

"Young people struggling to buy their first home should be offered loans by the government to help them pay the deposit, according to a new report which warns that reduced home ownership and the recent surge in private renting is damaging family life.

The idea has been put forward by the Housing and Finance Institute (HFI) as one of several initiatives it believes necessary to increase the number of homeowners by one million by 2035. As with the current system of student loans, the HFI suggests the loans could be repaid as a proportion of salary once the recipient has reached a certain income threshold.

Alternatively the money could be repaid under a simple repayment arrangement, although at a low interest rate and over a long term. The loans would be written off after 40 years or at state retirement age, whichever comes first."

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