Intermediate Rent is a type of affordable housing that allows eligible households to rent a home for less than the local market rate. It is generally aimed at people who struggle to afford a suitable home on the open market but are unlikely to access social housing.
Despite often being called the Intermediate Rent Scheme, it is not one standard London-wide programme. The rent, income limits, tenancy arrangements and eligibility requirements can vary between properties and housing providers.
In short: Intermediate Rent offers qualifying applicants a home at below-market rent. You remain a tenant and do not own a share of the property. A future opportunity to buy the home is not guaranteed.
Guinness Homes does not currently offer Intermediate Rent. We offer Shared Ownership and private sale homes. This guide explains how Intermediate Rent generally works in London and how it differs from Shared Ownership.
How Intermediate Rent works in London
Intermediate Rent homes are generally owned or managed by councils, housing associations and other housing providers. The rent is set below the amount charged for a comparable home on the open market.
Some providers describe their Intermediate Rent homes as being offered at around 80% of the rent for a comparable open-market property. This is not a fixed London-wide discount. Other homes may use a different discount or method to set the rent.
Where the rent is linked to the local market, the provider may compare the property with homes of a similar size, type and location. Ask the provider how the rent for the individual home was calculated.
You remain a tenant while living in an Intermediate Rent home. The property information and tenancy agreement should explain:
- The rent and any service charge
- The type of tenancy you will receive
- When the tenancy starts
- How the rent may change
- The deposit and rent required in advance
- The notice arrangements
- How the provider manages repairs
- Your responsibilities as a tenant
- Any restrictions affecting how you can use the property
Your tenancy documents do not replace any rights or responsibilities that apply under housing law.
A below-market rent may give you a better opportunity to save towards a future home deposit. The amount you can save will depend on your income, service charges, household bills and other financial commitments.
How much does Intermediate Rent cost in London?
There is no standard Intermediate Rent amount covering every home in London.
The rent can depend on:
- The borough and neighbourhood
- The size and type of home
- Rents for comparable local properties
- The provider’s rent-setting method
- The funding or planning conditions attached to the home
- Any service charge
Check the total regular housing cost before applying. The advertised rent may not include everything you need to pay.
Your costs could include:
- Rent
- Service charges
- Council Tax
- Energy and water
- Broadband
- Contents insurance
- Parking or estate charges
- Travel and other regular household spending
Check which charges are included in the advertised amount, when they are reviewed and how the provider will communicate any changes.
The property’s Energy Performance Certificate can help you understand its energy rating. Your actual energy costs will depend on your tariff, household size and energy use.
Who is eligible for Intermediate Rent in London?
There is no single eligibility test for every Intermediate Rent home in London. Each property has criteria set by the council, housing provider or development through which it is offered.
Depending on the home, applicants may need to:
- Be unable to afford a suitable home on the open market
- Meet minimum or maximum household-income limits
- Show that they can afford the rent and other regular costs
- Live or work in the relevant borough
- Meet any household-size requirements
- Not own another suitable home
- Provide any identity, residency or Right to Rent evidence required by law
- Pass the provider’s referencing and financial checks
- Have enough money for the deposit and rent in advance
Eligibility and affordability are separate assessments. Eligibility determines whether you can apply for a home. An affordability assessment considers whether you can meet the rent and other regular costs for that property.
Providers can use different affordability assessments. These may consider household income and regular financial commitments, so check how the provider will assess your application.
Meeting the basic criteria does not guarantee that you will receive a home. Providers may prioritise eligible applicants according to local connection, housing circumstances, income, household needs or other allocation criteria.
Availability can be limited, and suitable homes may not be advertised in every London borough or at all times.
Intermediate Rent income limits
There is no universal income limit for Intermediate Rent in London.
Some properties have minimum and maximum gross household-income requirements. A minimum threshold may be used to assess whether you can afford the home. A maximum limit can help direct properties towards households that cannot meet their needs through the open market.
The provider may look at the combined income and financial commitments of the people applying for the property.
Income limits and application rules can differ between boroughs, developments and providers. Check the current property listing, your borough’s housing website and the relevant housing provider before applying.
Do you need to be a key worker?
You do not always need to be a key worker to apply for Intermediate Rent.
Some homes are open to anyone who meets the property criteria. Others are reserved for, or give priority to, applicants working in occupations defined by the council or provider as key-worker roles.
The property listing should explain whether key-worker status is required or used to prioritise applications. You may need to provide evidence of your occupation and employer.
Key-worker status does not automatically mean you will qualify or receive a home. You will still need to meet the income, affordability, local connection and household requirements for the property.
Is Intermediate Rent the same as London Living Rent?
Intermediate Rent and London Living Rent are related, but they are not the same.
Intermediate Rent is a broad category of below-market rented housing. The rent, eligibility criteria and tenancy arrangements depend on the individual property and provider.
London Living Rent is a specific type of intermediate affordable housing. Its benchmark rents are based on local household incomes and adjusted according to the location and number of bedrooms.
At the time this article was updated, the general criteria for London Living Rent included:
- Living or working in London
- Having a formal tenancy or living with family or friends because of difficulties meeting housing costs
- Having a household income of no more than £75,000
- Not owning another residential property
- Being unable to buy a suitable home locally, including through Shared Ownership
Eligibility, affordability and allocation checks for the individual property will also apply.
London Living Rent is designed to give tenants greater rental stability and support them towards home ownership. The programme currently describes homes as being offered with a minimum three-year commitment. The provider should confirm the tenancy arrangements that apply to the individual home.
Depending on the property, provider and tenant’s circumstances, an opportunity to buy through Shared Ownership may be available during the tenancy.
These features apply specifically to London Living Rent. Other Intermediate Rent homes may have different rents, eligibility criteria, tenancy arrangements and home ownership options.
Can you buy an Intermediate Rent home later?
Intermediate Rent does not automatically give you the right to buy the property you rent.
Some developments may offer a future route into Shared Ownership or another affordable home ownership scheme. Other Intermediate Rent homes will remain rental properties without a purchase option.
If buying the home later is important to you, ask the provider:
- Whether that particular home could become available to buy
- Which home ownership scheme would apply
- When the opportunity might become available
- Whether it is guaranteed
- Whether you would need another eligibility and affordability assessment
- What deposit, mortgage and purchase costs you may need
Ask for any proposed purchase opportunity to be confirmed in writing. Do not assume that paying Intermediate Rent will automatically lead to ownership.
Intermediate Rent compared with Shared Ownership
Intermediate Rent and Shared Ownership can both help households whose needs are not being met by the open market, but they work in different ways.
Intermediate Rent
With Intermediate Rent, you are a tenant. You pay below-market rent but do not own a share of the property or build equity through your rental payments.
Initial costs may include a tenancy deposit and rent in advance. Regular costs can include rent, service charges, Council Tax and household bills.
Shared Ownership
With Shared Ownership, you buy a share of a home and pay rent to the housing provider on the share you do not own.
You will normally need a mortgage deposit. Other initial and ongoing costs can include legal fees, mortgage advice, surveys, mortgage repayments, rent, service charges, Council Tax, insurance and household bills.
Shared owners may be able to buy further shares through staircasing. The shares available, purchasing costs and maximum ownership level depend on the lease.
Repair responsibilities depend on the Shared Ownership lease, the type of home, any building warranty and whether an initial repair period applies. Shared owners usually pay towards relevant repair and maintenance costs. This can include communal or structural costs collected through a service charge.
Check the lease and key information documents before buying a Shared Ownership home.
Intermediate Rent may suit someone looking for a below-market rental home without buying immediately. Shared Ownership may be an option for someone who wants to purchase a share and can afford the initial and ongoing costs.
How to apply for Intermediate Rent in London
There is no single application service covering every Intermediate Rent home in London. The process depends on the borough, property and housing provider.
1. Check your borough’s housing information
Visit your London borough’s housing website to find out whether it operates an intermediate housing register or publishes local application information.
A register may give eligible residents or workers access to property details or priority viewings. Joining a register does not guarantee that you will receive a home.
2. Search for available homes
Use the Homes for Londoners portal, your council’s website and the websites of housing providers operating in your preferred area.
Availability changes, so you may need to check more than one source regularly.
3. Check the property criteria
Read the criteria for the individual home before applying. Check:
- The household-income limits
- Any local connection requirement
- Whether key workers receive priority
- The household-size rules
- The affordability and referencing requirements
- Whether existing homeowners can apply
- Any allocation priorities
- The deposit and rent required in advance
Do not rely on the criteria for another home, even if it is in the same borough or managed by the same provider.
4. Calculate the full cost
Work out the total monthly cost of living in the property. Include rent, service charges, Council Tax, utilities, insurance, parking, travel and other regular spending.
Consider whether the home would remain affordable if your costs or circumstances changed.
5. Prepare your application
Depending on the property and provider, you may be asked for:
- Proof of identity
- Any residency or Right to Rent evidence required by law
- Evidence of household income
- Proof of your current address
- Details of savings and regular financial commitments
- Employment or rental history
Follow the instructions in the property listing. You may need to join a council register, apply through a property portal or contact the provider directly.
6. Review the tenancy information
If your application is successful, read the proposed tenancy agreement and supporting documents before accepting the home.
Check the rent, service charge, deposit, tenancy type, notice arrangements, rent review process and repair information. Ask the provider to explain anything that is unclear before you sign.
What to ask before accepting an Intermediate Rent home
Before accepting a property, ask:
- What is the total monthly cost?
- Is the service charge included in the advertised rent?
- How was the rent calculated?
- What is the process for changing the rent?
- How much deposit and rent in advance must you pay?
- What type of tenancy will you receive?
- What are the arrangements for ending the tenancy?
- How does the provider manage repairs?
- What happens if your income, employment or household changes?
- Is there a written opportunity to buy this particular home later?
The answers should help you compare the property with other rental and home ownership options.
Before you apply for Intermediate Rent
Intermediate Rent can provide a below-market rental option for eligible London households. It may give some tenants a better opportunity to save, but there is no guarantee that the property will later be available to buy.
Check the full monthly cost, property criteria, tenancy arrangements and any proposed route to ownership before applying.
This article provides general information about Intermediate Rent and does not form part of a tenancy, property offer or eligibility assessment. It is not personal financial, mortgage or legal advice. Eligibility, affordability and allocation decisions are made by the council or housing provider responsible for the property.
If you are deciding whether to buy a home, consider speaking to an independent financial adviser or qualified mortgage adviser about your circumstances. Obtain independent legal advice before entering into a property purchase.
Housing schemes, rents, income limits, tenancy arrangements and eligibility requirements can change. Check the current property listing and information supplied by the relevant council or housing provider before applying or making a decision.
Useful official information
- Learn about intermediate homes in London
- Search the Homes for Londoners portal
- Read about London Living Rent
- Read the Shared Ownership costs guidance on GOV.UK
Explore Shared Ownership homes in London
Guinness Homes provides Shared Ownership and private sale homes in London and other locations across England.
With Shared Ownership, you buy a share of a home and pay rent on the remaining share. Eligibility, initial costs and ongoing payments depend on the property and your financial circumstances.
