How does the Rent to Buy scheme work?

Last updated: 12 March 2025

What is the Rent to Buy scheme?

The Rent to Buy scheme is a government program that was set up to help tenants in England to own their first home, even if they can't afford a deposit at the moment.

The scheme allows tenants to rent a home at a discounted rate (usually 20% below market), so that they're able to build up a deposit to buy the property or another one after the scheme has ended. There is no obligation to buy the property if they decide not to, but it can be seen as a helpful stepping stone for those who may struggle to save while paying full rent.

Is the scheme still open?

The scheme is available in England, apart from London. Rent to Buy scheme properties are not available everywhere in the UK, but you can use it and similar schemes in some regions.

Find your local Help to Buy agent here to see if they offer Rent to Buy homes in your area.

How does the Rent to Buy scheme work for tenants?

If you're eligible, you can apply to rent a property that is part of the scheme.

Your initial tenancy agreement can last up to 2 years. If you need more time to save for a deposit, your landlord may offer an extension.

To remain in the scheme, you must pay rent on time and follow the terms of your tenancy agreement; otherwise, you may lose eligibility.

Once you've saved enough for a deposit and secured a mortgage, you can buy the property if you choose to.

Am I eligible for the Rent to Buy scheme?

To qualify for Rent to Buy, you must:

• Be employed full-time or part-time

• Be a first-time buyer

• Afford both rent payments and saving for a deposit simultaneously

Advantages and disadvantages of the Rent to Buy scheme

Advantages:

• Lower Rent – You pay a reduced rent (typically 20% below market rate), making it easier to save for a deposit.

• Flexibility – You are not locked into buying and can choose to continue renting or move elsewhere if circumstances change.

• No Immediate Mortgage Commitment – Allows you to experience living in the property before deciding to purchase.

Disadvantages:

• Limited Property Availability – Rent to Buy homes are not widely available and may be in high demand.

• Strict Eligibility Criteria – You must meet specific affordability and employment requirements to qualify.

• Time Restrictions – If you don’t buy within the agreed period, you may have to move out or pay full market rent.

Other ways to buy your first house

There are several schemes and specialist mortgages to help you buy your first home.

If you are struggling to save a deposit, here is how to get a mortgage with no deposit and get on the property ladder.

Help to buy mortgages allow you to borrow additional money to buy a new-build home with only a 5% deposit.

Specialist first time buyer mortgages can come with high LTVs, meaning you would only need a deposit of 5% or 10%.