What is the Intermediate Rent scheme?
Intermediate Rent: What does it mean?
Intermediate Rent or Intermediate Market Rent is designed to help first time buyers who can’t yet afford to buy a home, but want the chance to save for a deposit to purchase a home within the next five years.
This rental option offers budding buyers the opportunity to rent a brand new or refurbished home at less than the market rate. The rent is subsidised, normally at approximately 20% lower than what you would expect to pay for a similar home in a similar area if you were renting on the private market. As well as being more affordable, you have the assurance that your home is built, managed and let by a registered housing provider.
Homes available through Intermediate Rent are usually let on an Assured Shorthold Tenancy basis with a six month contract period. You may have the opportunity to rent a home for longer than this initial contract period – for example, up to five years – but this will depend on your landlord’s future plans for the home.
Intermediate Rent: Eligibility
To be eligible for Intermediate Rent, you must meet certain criteria:
- Your total household income must be less than £90,000 if in London, or less than £80,000 outside of London.
- You must be unable to afford to buy a suitable property on the open market.
- You must not already own another home.
- You must be able to afford 80% of the local market rent without assistance.
- For some developments, there may be additional criteria such as priority given to those who currently live or work in the local area.
To find out more about other home-buying and rental options, visit our article index, or check out our helpful FAQs and guides. Alternatively, you can start your search for a new home on Share to Buy’s property portal today!