Rent to Buy
If you can't afford to buy a home without help and:
- you are a first time buyer
- earn less than £60K per year.
How does it work?
This option offers new build homes to rent for a pre-defined period of time with the expectation that you will buy a share of the property at the end of the rental period.
Homes are available through a range of housing associations on assured shorthold tenancies with an affordable rent of 80% (or less) of market rents. The rent is payable for a pre-defined and limited period, after which time there is an expectation that you will purchase the property on the terms of Shared Ownership.
The rental period provides you with the opportunity to save for a deposit towards buying a share in the home, enabling you to access mortgage availability.Some housing associations offer variations of Rent to Buy. Some of these schemes are marketed with different names, for example "Try Before You Buy" or "Rent Save Buy", etc. Please enquire with the relevant housing association to clarify the terms under which the scheme you are interested in is being offered.
You may have the opportunity to purchase a share in the property throughout your tenancy. At the end of the rental period, you will be assessed to determine your affordability and eligibility to purchase a share in the property.If your circumstances have changed and you are no longer able to afford to buy, your landlord may review your tenancy. Please note that there is no guarantee that your tenancy will be renewed after each of the agreed periods.
Intermediate rent
If you can't afford to buy a home without help and:
- you are a first time buyer
- earn less than £60K per year.
How does it work?
Intermediate Rent is where you pay reduced rent on a new-build home, enabling you to save for a deposit so you are able to purchase a property at a later date*.
If you are having trouble obtaining an affordable mortgage without a deposit, you may be eligible to take part in Intermediate Rent. (You pay no more than 80% of the current market rent on a new-build home for up to five years.) You use the time that you’re paying a reduced rent to save up for a deposit so that you can obtain a mortgage and purchase a home at a later date.*
Unlike Rent to Buy there is no expectation that you will purchase the property you are renting.
How to apply
Intermediate Rent is only available on certain developments . Please visit the property search pages to see if there are any homes for intermediate rent listed. You should apply online and select the 'intermediate rent' option on the application form.
* The option to sell the property you are renting is at the discretion of the Landlord or Housing Association. The Landlord will only be in a position to offer the property for sale if this is economically viable.