The developer behind BoKlok homes has unveiled an innovative scheme aimed at revolutionising the housing market and getting more people on the property ladder.
Live Smart @ Home’s ‘Try Before You Buy’ scheme will give people the opportunity to rent a two-bedroom BoKlok apartment for a six-month period before buying the property outright.
If they opt to buy their home their rental payments will be refunded, less a small administration fee, and used as a deposit, effectively giving them six months free rent.
For example, people who rent a two-bedroom apartment on the BoKlok development in Gateshead will pay £625 a month rent and if they decide they want to buy their home, will then be given £3,000 back as a deposit towards the purchase price of £124,950.
Although this offer initially applies to a limited number of two-bedroom apartments only, Live Smart @ Home is expecting to extend it to some of the BoKlok homes when they are completed in the next couple of months.
Alan Prole, managing director of Live Smart @ Home, said: “With today’s still high property prices one of the biggest obstacles for people, especially young professionals, getting on the housing ladder is having enough money to put down a deposit.
“With 10% deposits now typically required from lenders, this is delaying or stopping many people from owning a home particularly as saving an additional deposit whilst also paying rent and other rising living costs is now even harder.
“However, with our Try Before You Buy scheme, we are not only letting people experience life in a BoKlok but at the end of the six months giving them the opportunity to buy their home and receive their rental payments back to use as part of a deposit.
“We are confident that once people have tried living in a BoKlok home they will want to go ahead with the purchase and secure that all important foot on the property ladder.”
If Try Before You Buy proves successful, Live Smart @ Home may also extend the scheme to cover new (non-Boklok) properties in cities such as Leeds and Edinburgh.
The first phase of the 119-home (93 Boklok properties) development at St James Village in Felling, Gateshead, is rapidly nearing completion and the first residents will begin moving into their new BoKlok homes in the next couple of weeks.
Keywords: BoKlok
