Rent to Buy: What is it?

How can the Rent to Buy scheme help me buy a home?

What is Rent to Buy?

Rent to Buy is a government housing scheme designed to help budding buyers save for a deposit while renting a new-build home at a reduced cost on an Intermediate Rent basis.

Available to eligible renters across England (except for London), Rent to Buy provides middle-income earners with the opportunity to live in a high-quality home typically set at 80% of the local market rate (that’s a 20% subsidised rate) with a fixed rate of inflation. This reduction allows tenants to save toward purchasing their home or another property in the future. It’s also possible to make an offer to buy the property on a Shared Ownership basis at any time during the outlined tenancy if you are still eligible for the scheme.

Rent to Buy is open to households that meet specific eligibility criteria, including income thresholds and specific housing circumstances. You can find out more about Rent to Buy eligibility here.

If you’re looking for a similar housing product in the capital, the London Living Rent scheme could be the perfect option for you.

How does the Rent to Buy scheme work?

Rent to Buy homes are offered on an assured shorthold tenancy for a fixed-term agreement, typically lasting up to five years. A savings plan will be put in place to help you raise a sufficient deposit to purchase on either Shared Ownership or equity loan terms within the five year tenancy.

The housing provider will discuss your deposit savings during regular reviews to check your progress, and the savings period can also be extended if you still want to buy but need a bit more time.

Housing providers encourage Rent to Buy tenants to transition to homeownership by:

• Helping tenants save for a deposit while they rent.
• Offering the opportunity to buy their home outright or through Shared Ownership during or at the end of the tenancy.

In some cases, tenants may also receive additional support or priority for other affordable housing options if they do not purchase their Rent to Buy property.

Are Rent to Buy homes near me available?

Ready to start your Rent to Buy property search? Visit our property portal to explore homes available under this scheme in your area.

If you’d like to learn more about how Rent to Buy works, including eligibility and affordability, explore our comprehensive guides and FAQs to see if this scheme is the right fit for you. Find your path to homeownership on Share to Buy.