Rent to Buy | Complete Guide
From the basics to the rules, we delve into the ins and outs of the rent to buy scheme. It’s a popular choice among many renters, and aims to make the transition from renting to buying smoother.
What is rent to buy?
The housing scheme gives you the option to rent a newly built home for a period of time. You can then buy the property, or a share of it, once you have saved enough for a deposit and can get a mortgage.
How does rent to buy work?
You rent a new build home at more affordable rates (normally 20% below the market rate) in England, outside London. The exact length varies depending on the property itself.
Your initial tenancy agreement will usually be for up to two years. After that, your landlord may agree to extend your tenancy if you need more time to save for a deposit. You have the option to buy the property, or buy a share of it, using the Shared Ownership scheme. Alternatively, you can move out.
Rent to buy is one example of how the government can help you buy a home and make it that little bit easier to get on the property ladder.
A closer look at the rent to buy scheme
Homes are made available to rent through a tenancy agreement, usually for up to two years initially.
You can buy a home as soon as you’ve saved enough deposit and can get a mortgage. You’re free to make an offer to purchase the property outright, or look at part-rent, part-buy options.
The availability of this scheme depends on local housing providers and the properties available in your area.
What does it all mean for you?
The rent to buy scheme allows you to live in the property at a reduced rate of around 80% of market rents. This can help give you the opportunity to save for a deposit more easily.
The intention is that the scheme makes it more likely you’ll be able to afford to buy the property, thanks to the subsidised rent.
Who is the rent to buy scheme available to?
Rent to Buy in England is generally aimed at people who are working, first-time buyers and able to pay rent while saving for a deposit. You may also be eligible if you are returning to home ownership after a relationship breakdown.
You’re eligible if:
- You’re in full or part-time employment
- You’re a first-time buyer
- You can afford to pay rent and save for a deposit at the same time
- You’re returning to home ownership following a relationship breakdown
Do you need good credit for rent to buy?
Usually, a good credit history is a necessity if you want to rent a home through this government scheme. So, always check your credit score to see where you stand.
Specific requirements vary depending on the property itself. Priority is often given to eligible applicants who meet local priorities set by the housing provider or local authority.
You can check whether you’re eligible with the housing provider advertising the property, or by looking for Rent to Buy homes through your local council or affordable home ownership providers.
What if you don’t qualify for rent to buy?
If you find you’re not eligible for rent to buy, there are a number of other options available to you from the government.
There are the affordable home ownership schemes, including Shared Ownership, Right to Buy and Right to Acquire, depending on your circumstances and where you live. These schemes have helped many homeowners get on the housing ladder.
It’s all in the name
There are slight variations of the scheme, both in name and rules. Therefore, depending on where you live, it might be called something different.
For example, there’s ‘London Living Rent’ for those in the capital, or ‘Rent to Own’ in Wales, although the Welsh Rent to Own scheme is now closed and all homes have been built and let. A small number of homes may become available in future through participating landlords.
What does London Living Rent mean?
London Living Rent a separate affordable housing scheme for middle-income Londoners who want to save to buy a home, usually through Shared Ownership. Under the London Living Rent scheme, eligible households can apply for a rental property at a discounted rate based on a third of local household incomes.
London Living Rent homes are offered on tenancies of a minimum of three years, and landlords are expected to support tenants into home ownership so that homes are sold within ten years. To be eligible, you must live or work in London, have a maximum household income of £75,000, not own another residential home and be unable to buy a home in your local area, including through Shared Ownership.
Is London rent expensive?
Rental prices in London are considered expensive, especially compared to other parts of the UK. Several factors contribute to the high cost of rent in London, including increased demand for housing, a limited supply of rental properties and the high cost of living in the city. This is one reason why the London Living Rent sceme helps.
How do Rent to Own homes work?
In Wales, the scheme has a different name and works a little differently too.
However Rent to Own in Wales is now closed, and all homes have been built and let. A small number of homes may become available in future, so you should contact a participating landlord in your local area for more information.
Under the original scheme, eligible tenants could rent a property at market rent and later apply to buy it. If they bought the home, they could receive 25% of the rent they had paid back, plus 50% of any increase in the property’s value, to help towards a deposit.
Am I eligible for rent to buy?
There are a number of factors you need to consider when deciding if rent to buy is the right option for you or if you’re eligible.
Reduced rent
Are you struggling to save for a deposit and be taken seriously by mortgage lenders?
Unsurprisingly, many hopeful homeowners are tempted by the idea of reduced rate rent. This gives you a much better chance of saving.
However, it’s important to remember this isn’t your only option for getting your foot on the property ladder.
Also, the scheme won’t do the saving for you. You’ll still need to be savvy with your money, doing what’s necessary to save.
Access to properties
Are you currently unable to afford somewhere you’d like to live?
The scheme can also help give you access to properties you may have previously not been able to afford.
You’ll be able to rent the home first, giving you an idea of whether you like living in the area and if it’s right for you. There’s no commitment to buy immediately, you have the time to make up your mind.
Want to get a feel for an area before you rent? A property report can collect all the information you need to know, everything from local schools to amenities. Get one for yourself to gain a better understanding of where you’re going to live.
Social landlord
Remember, when it comes to the rent to buy scheme, you’ll usually be renting from a social landlord or affordable housing provider.
For some, this appeals, as it provides them with extra security. This isn’t for everyone, however, so you need to decide what it is you’re looking for.
Apply to Rent to Buy
Decided the scheme is right for you? The first step is to look for Rent to Buy homes through local housing providers, affordable home ownership providers or your local council. Application routes vary depending on the property and provider.
Other ways to buy a home instead of using rent to buy
Rent to buy isn’t the only option available when it comes to getting help to purchase a home. Other options include:
Traditional mortgage
This is the most common way to buy a home. You’ll need to save a deposit, usually around 5-20% of the property’s value, and then take out a mortgage for the remaining amount.
Shared ownership
The Shared Ownership scheme allows you to buy a share of a property, usually between 10% and 75% of the home’s full market value, and pay rent on the remaining share. It’s intended for people who can’t afford to buy a property outright and is often used by first-time buyers.
Government schemes
There are several government schemes available in the UK to help people buy a home, including the Right to Buy scheme, which allows eligible council tenants and some housing association tenants to buy their home at a discounted price, Right to Acquire for some housing association tenants, and Shared Ownership.
Joint ownership
If you can’t afford to buy a property on your own, it might be worth considering buying with a friend or family member. This can allow you to split the cost of the property and the mortgage payments.
Should I rent to buy?
Whether you decide to rent or buy essentially comes down to your individual circumstances. For many, the idea of renting is better as it gives them more freedom and flexibility without making a significant financial commitment.
Yet, buying a home in the UK is still the dream for a lot of people, and schemes like rent to buy can help you realise your ambitions of getting on the property ladder.
Speak to a mortgage adviser
If you’re planning on buying the property after renting it, it’s advisable to speak to an independent mortgage adviser to understand your options.
Need help finding one? Our recommended mortgage advisers have a 5-star Trustpilot rating from over 5,000 reviews. Get a competitive mortgage quote below.
Your property may be repossessed if you do not keep up repayments on your mortgage.
Last Updated: June 29th, 2026
