Rent to Buy

Learn about Rent to Buy on Share to Buy!

What is the Rent to Buy scheme?

Rent to Buy: Overview

With Rent to Buy, working households are able to rent a new build home on an Intermediate Rent basis. The property will be let at up to 80% of the equivalent market rent (a 20% subsidised rate) with a fixed rate of inflation. You can then go on to make an offer to purchase the property on a Shared Ownership basis when you can afford to; this can be done at anytime during the outlined tenancy as long as you’re still eligible for the scheme.

The property would be let on an assured shorthold tenancy for a fixed term for up to five years which will be linked to (but not necessarily the same as) the required savings period. 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 five years. 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.

When you decide to buy, your housing provider will assess what share of the property can be bought based on an independent financial assessment of what you can afford. Please note that terms and incentives may vary from development to development. The tenancy can also be ended at any point, subject to the terms of your tenancy agreement and initial fixed terms being spent.

Rent to Buy: Eligibility

To be eligible for Rent to Buy, you must meet certain criteria:

  • At the time of letting, you must be a working household.
  • You must not already own another home.
  • You must be able to demonstrate that you have a good credit history (no bad debts or County Court Judgements).
  • 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!