Rent to Buy is a government-backed scheme in England (excluding London, which has its own London Living Rent version). It’s designed to help working households move from renting to home ownership by reducing the financial pressure of private rents.

Key Features:

• Pay rent at around 20% below market value.
• Live in the property for a fixed term (usually up to five years, though this can vary by provider).
• Use the rent discount to save towards a deposit and other buying costs.

At the end of the rental period, you may have the chance to buy the home outright or through Shared Ownership, but:

• The right to buy isn’t guaranteed, check the provider’s terms before you sign.
• If you do buy, the price is normally based on the market value at the time of purchase, not when you moved in.

While there’s no legal obligation to buy, the scheme is intended for people who aim to own.

Eligibility is generally based on the following criteria:

• You must be working or in training that’s likely to lead to work.
• You must have a household income under £80,000 (£90,000 in London, for the London Living Rent scheme).
• You must be a first-time buyer, or returning to ownership after a relationship breakdown.
• You must not own another property.

Some providers may have additional local criteria or prioritise certain applicants, such as key workers.

1. Find a Rent to Buy home through housing associations, developers, or local housing portals.
2. Rent the property at a discounted rate for a fixed term (usually up to 5 years).
3. Use the reduced rent to save for a mortgage deposit during your tenancy.
4. At the end of the term, you may:
   • Buy the home outright.
   • Buy a share through Shared Ownership.
   • Choose not to buy and move out.

Some landlords may offer you the first option to purchase, but this varies, check before signing up.

Here’s an example:

If the market rent is £900/month and your Rent to Buy rent is £720/month, you save £180/month, or over £10,000 across five years, money that can go towards your deposit, fees, or moving costs.

However, you’ll still need to save for:

• A deposit (usually 5–10% of the home’s value).
• Mortgage and legal fees.
• Potential stamp duty (though first-time buyers are often exempt).

Rent to Buy homes are available across parts of England, though availability is patchy. You’re more likely to find them in:

• The North West, Midlands, and some rural areas.
• Through housing associations who also offer Shared Ownership.

In London, the similar London Living Rent scheme offers discounted rent and a pathway to Shared Ownership.

In Scotland and Wales, Rent to Buy is not currently available. Wales had a similar Rent to Own scheme, now closed to new landlords.

You can find Rent to Buy homes through:

• Housing associations (check their websites).
• Share to Buy: a national portal for affordable home ownership.
• Local council housing portals: look under “affordable housing” or “intermediate rent”.

You’ll usually need to:

• Register your interest.
• Provide income and employment details.
• Pass affordability and credit checks.

• You’re still a tenant: Until you buy the home, you don’t own it. You must follow tenancy rules, including rent payments and property care.
• No guarantee to buy: In some cases, the property might not be available to purchase later, or prices may rise. Always get clear information upfront.
• It’s not emergency housing: Rent to Buy is not a solution for homelessness or urgent housing needs. You must be able to afford the reduced rent and have a plan to save.

• Use a benefits or affordability calculator to check how Rent to Buy fits your budget.
• Speak to a mortgage advisor early to understand how much you’ll need to save.
• Compare Rent to Buy with other schemes like Shared Ownership, First Homes, or Help to Buy (resale).

Rent to Buy won’t suit everyone, but if you’re working, renting privately, and stuck saving for a deposit, it could be the break you need to finally make home ownership achievable. 

If you’re eligible for any household support, on a low income, or receiving certain benefits, you might also qualify for schemes like ECO4 or the Great British Insulation Scheme. These government-backed programmes provide free insulation, heating upgrades, and other improvements to help lower your energy costs and make your home more comfortable.

Check your eligibility today. It’s free, quick, and could make a real difference to your household costs.

Useful Resources:

• Rent to Buy: pay lower rent to save for a deposit
• Housing association homes
• Share To Buy

Cost of Living Support Available:

• Household Support Fund (England)
• Cost of Living Payments
• Support for Mortgage Interest (SMI)
• Mortgage Guarantee Scheme
• Council Tax Reduction

ECO4 Support Available:

• Department for Business, Energy & Industrial Strategy, Energy Company Obligation
• Ofgem Energy Company Obligation (ECO4) Guidance: Delivery V1.1
• Ofgem Energy Company Obligation (ECO)
• UK Government, Help from your energy supplier: the Energy Company Obligation
• Which? Energy Company Obligation (ECO)

Other Support Available:

• Household Support Fund
• Cold Weather Payment
• Cost of Living
• Fuel Vouchers