Rent to Buy: pay lower rent to save for a deposit

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1. Overview

Rent to Buy helps tenants in England save for a deposit to buy a home by offering properties at a discount. This is normally 20% below market rent.

The scheme is available in England, apart from London. Properties in London are covered by a separate scheme called .

Rent to Buy is not available in Scotland. The has closed to new landlords, but some properties might still be available. There鈥檚 a .

2. Eligibility

To be eligible for Rent to Buy, you must be:

  • in full or part time employment
  • a first-time buyer
  • able to pay your rent and save for a deposit at the same time

You may also be eligible for Rent to Buy if you are returning to home ownership following a relationship breakdown.

A landlord may check your income and credit history to decide if you鈥檙e eligible.

3. How the scheme works

You apply to rent a property that is in the scheme. If you鈥檙e considered eligible, and the property is still available, it will be offered to you.

Your initial tenancy agreement will be for up to 2 years. After that, if you need more time to save for a deposit, your landlord may agree to extend your tenancy.

If you do not pay your rent on time and follow the terms of your tenancy agreement, you may not be allowed to stay in the scheme.

You can buy a home as soon as you鈥檝e saved enough deposit and can get a mortgage.

4. How to apply

If you live in England (excluding London), you can search for organisations that have Rent to Buy homes using the .

Properties in London are covered by a separate scheme called .

Council and housing association homes

Some local councils and housing associations advertise Rent to Buy homes.

Check the or with your local council or housing association for more information. There may be extra eligibility requirements to apply.

5. Buying a home

You can use the deposit you鈥檝e saved to buy any home, including those available using an affordable home ownership scheme.

If you want to buy the home you鈥檙e renting

You may be able to buy the home you鈥檙e renting if your landlord agrees.

If your landlord decides to sell while you鈥檙e a tenant they must give you the option of buying your home first.

The price you pay will be the property鈥檚 market value. This may be more or less than when you first rented your home.

Check with your landlord whether buying the home you鈥檙e renting is an option.

Buying the home you are renting through shared ownership

You may be able to buy the home you鈥檙e renting through the shared ownership scheme if:

Check with your landlord whether buying the home you鈥檙e renting through shared ownership is an option.