How to rent your way to buying a home

The gap between renting and buying can feel impossibly wide, especially when saving for a deposit feels like climbing a mountain.

Renting schemes exist to bridge that gap.

Rent to Buy (sometimes called ‘rent to own’), London Living Rent and Intermediate Rent all work by offering homes at a below-market rate, so you can put the difference towards saving a deposit.

Renting schemes in England

All three renting schemes in England are government-backed and designed to help first time buyers take meaningful steps toward homeownership. But most budding buyers don’t know they exist. According to our research:

• 7% have heard of Intermediate Rent.
• 9% have heard of London Living Rent.
• 49% of prospective buyers have heard of Rent to Buy.

Let’s explore each scheme, so you can see how it could help you rent your way to homeownership.

Intermediate Rent

Partially funded by the government through the Affordable Homes Programme, Intermediate Rent offers homes at a discounted rate – usually around 80% of the rate you’d expect to pay in the private rental market. It’s a popular option for middle-income households who struggle to afford private rents, want to reduce their rental costs and save towards buying a home.

Intermediate Rent homes are:

• Usually brand-new or refurbished.
• Rented at a subsidised rate – around 20% less than a comparable private rental.

AST contract periods on Intermediate Rent homes are usually six months. You may be able to rent a home for longer – up to five years – but this will depend on the landlord’s plans for the property.

Learn more about Intermediate Rent eligibility and prioritisation.

London Living Rent

If you live or work in London and want to save to buy a Shared Ownership home, London Living Rent could help you get there. This form of intermediate affordable housing, offered by the Mayor of London, lets eligible renters pay a subsidised rent and put the money saved towards a deposit.

London Living Rent homes are:

• High-quality properties (usually new-builds).
• Rented at a discounted rate, based on a third of local household incomes.
• Let on a minimum tenancy of three years and a maximum of 10 years.

Rent levels vary by location and property size. The Mayor of London sets benchmark levels for each borough annually, calculated using one-third of local household incomes, and adjusted for the number of bedrooms in the home.

Homeownership within 10 years is the goal, and landlords are expected to support tenants to get there. This includes offering them the option to buy their home on a Shared Ownership basis during their tenancy.

Learn more about London Living Rent eligibility and prioritisation.

Rent to Buy

Rent to Buy works similarly to the London Living Rent scheme, but it’s designed for eligible renters across England, outside of London. It offers homes at a discounted rent (typically 20% lower than local market rates), so budding buyers can redirect the money saved towards a deposit.

Rent to Buy homes are:

• High-quality properties (usually new-builds).
• Rented at a discounted rate, typically 20% below local market rates.
• Offered on an initial tenancy agreement of up to two years. Your landlord may agree to extend your tenancy if you need more time to save a deposit.

The aim is to help tenants raise a sufficient deposit to purchase a home on Shared Ownership or equity loan terms. It may be possible to buy the home you’re renting if your landlord agrees. If your landlord decides to sell the property you’re renting, they must offer you the option to buy it first before putting it on the market.

Learn more about Rent to Buy eligibility and prioritisation.

Search for homes in your area on Share to Buy

If your goal is to buy a home in the next few years, but you need more time to save, a renting scheme could be the stepping stone you need. Through subsidised rents, they give you a real opportunity to build your deposit fund.

Whether you’re interested in Intermediate Rent, London Living Rent or Rent to Buy, we can help you find your space. Use our property portal to search for homes in your area and create an account to save your search, register for alerts and more.