Plans for a rent-to-own homes scheme would be a priority for the Liberal Democrats if they are part of the new government in May.

The scheme would allow people to slowly build up a share of their home over a period of 30 years, instead of having to pay deposits up front.

They would make a monthly payment that was equivalent to, or slightly above, the market rental value of the property.

Cash in value

One of the options available would be for the renter to cash-in their share of the property at any time.

It is hoped that the cash provided by this option would be used as a deposit to buy a home on the open market.

Nick Clegg says the scheme would help thousands of young people across England to finally get their foot on the housing ladder.

The plan is for around 30,000 of these homes to be delivered over the period of the next parliament. They would be created in partnership with housing association and other organisations.

Stronger economy

Mr Clegg says the scheme would provide a stronger economy and fairer society. It would, he claims, give 'generation rent' the same chance to get on the housing ladder as their parents had.

Current research shows how home ownership levels have dropped for under 35s in the last decade. The percentage of 25 to 35 year olds owning a home is now around a third (36%), down from 59%.

The Deputy Prime Minster says that currently owning a home is out of reach for most working young people as prices are so high that renters cannot afford to save for a deposit.

However, there will be some strings attached such as the anyone applying for the scheme would need to be in steady employment and would have to complete affordability tests and credit checks.

Rent-to-own versus rent-to-buy

Rent-to-own is different from previous schemes like rent-to-buy. With rent-to-buy people rented a newly built home at around 20% below the market rate for around five years.

The aim of rent-to-buy was that during the five year period, they could use the money they saved by paying a lower rent to save for a deposit. After the period was up the renter was given the options to buy or move out.