Rent to Buy is a housing scheme available in England outside London. It allows eligible first-time buyers to rent a home at around 20% below the local market rate, giving them an opportunity to save towards a deposit.
You can use the money you save to buy a suitable home when you are financially ready. You may be able to buy the property you are renting, outright or through Shared Ownership, but this depends on your landlord’s agreement and is not guaranteed.
Rent to Buy at a glance
- Available in England outside London
- Rent is normally around 20% below the local market rate
- Intended mainly for working first-time buyers
- Designed to help tenants save towards buying a home
- Buying the property you rent is not guaranteed
Check the terms for each property
Rent, service charges, tenancy periods, extension arrangements and purchase options can vary. Check the terms for the individual property before applying, including whether you may be able to buy the home.
How does Rent to Buy work?
You apply to rent a property offered through the scheme. If you meet the eligibility requirements and the home remains available, the provider may offer you a tenancy.
The discounted rent may leave you with more money to put towards a deposit. The provider does not set these savings aside for you, so you will need to create and maintain your own savings plan.
Your tenancy agreement should explain:
- how much rent you will pay
- whether a service charge applies
- how and when the rent may increase
- how long your tenancy will last
- whether your tenancy could be extended
- whether buying the property may be possible
- what will happen when your tenancy ends
Your initial Rent to Buy tenancy may last for up to two years. Your landlord may agree to extend it if you need more time to save, but an extension is not guaranteed.
You must pay your rent on time and follow the terms of your tenancy agreement to remain in the scheme.
Before applying, estimate how much you could realistically save each month. Compare this with your likely deposit and buying costs to see whether you could reach your target within the expected tenancy period. Allow for possible rent increases, service charges and changes in property prices or mortgage rates.
You can buy a home as soon as you have saved enough and can obtain a suitable mortgage. You do not necessarily need to wait until your tenancy ends.
What happens when the tenancy ends?
If you do not buy the property or agree an extension, your options will depend on your tenancy agreement and the actions your landlord takes.
You may need to leave when the tenancy lawfully ends, following any required notice and possession process. Do not assume that you can remain in the property or continue paying the discounted rent.
Speak to your landlord before the tenancy ends if you need more time to save or are unsure what options may be available.
Who is eligible for Rent to Buy?
To be eligible for Rent to Buy, you will normally need to:
- be in full-time or part-time employment
- be a first-time buyer
- be able to pay your rent while saving towards a deposit
You may also qualify if you previously owned a home but are returning to homeownership after a relationship breakdown.
Your landlord may check your income and credit history when deciding whether you are eligible. Providers may also apply additional affordability, local or property-specific requirements.
Depending on the provider, an affordability assessment could consider your:
- income and regular spending
- existing loans and credit commitments
- savings
- expected housing costs
- ability to pay the rent while saving
Check the eligibility information for the individual property rather than assuming every provider uses the same criteria.
You can read the national requirements in the official GOV.UK Rent to Buy eligibility guidance.
Can you buy the Rent to Buy property?
You may be able to buy the home you rent, but your landlord must agree to the sale.
If your landlord decides to sell the property, ask whether you will be able to buy it. Do not assume that you have a general right of first refusal. Check your tenancy agreement and the provider’s terms to understand any purchase rights that apply to the property.
If the property is available to buy, you may be able to:
- buy the whole home using a mortgage
- buy a share through Shared Ownership and pay rent on the remaining share
To buy through Shared Ownership, the landlord must agree and you must meet the relevant eligibility, affordability, deposit and mortgage requirements.
If the provider agrees to sell the property, the price and valuation process will depend on the provider’s terms and the sale arrangement. Ask how the property will be valued and whether the price will reflect its value at the time of purchase.
Before applying for a Rent to Buy property, ask the provider:
- Can I buy this particular home?
- When would I be allowed to buy it?
- How would the property be valued?
- Would the price reflect its value when I purchase it?
- Could I buy it through Shared Ownership?
- What happens if I decide not to buy?
- What happens if I cannot obtain a mortgage?
- Could my tenancy be extended if I need more time?
- What happens when the tenancy ends?
Rent to Buy terms can differ between properties and providers. Asking these questions before you apply can help you understand whether the tenancy period, monthly costs and possible purchase arrangements fit your plans.
Read the GOV.UK guidance on buying a Rent to Buy home.
What is the difference between Rent to Buy and Shared Ownership?
With Rent to Buy, you rent the whole home at a discounted rate while saving towards a future purchase.
With Shared Ownership, you buy a share of a home and pay rent to the housing provider on the remaining share. Depending on the terms of your lease, you may be able to buy further shares later through a process known as staircasing.
Moving from Rent to Buy to Shared Ownership is not automatic. The home must be available through Shared Ownership, your landlord must agree and you must pass the required eligibility and affordability assessments.
Could Shared Ownership be another option?
Rent to Buy is not the only possible route to homeownership. With Shared Ownership, you buy a share of a home and pay rent to the housing provider on the remaining share.
Guinness Homes offers Shared Ownership homes across a range of developments. Prices, availability and eligibility requirements vary by development.
Find out how Shared Ownership works
View available Shared Ownership homes
How do you apply for Rent to Buy?
Search for housing associations and other providers offering Rent to Buy properties in the area where you want to live.
Properties may be advertised through:
- housing association websites
- local council housing pages
- affordable housing agents
- property-search websites
When you find a suitable home, you will normally need to complete an application. The provider may also carry out an affordability assessment.
Depending on the provider, you may be asked for documents such as:
- proof of your income and employment
- bank statements
- details of loans and other financial commitments
- information about your savings
- details of everyone who will live in the home
- proof of your identity and current address
The documents and checks required can differ between providers. Ask for a full list before you apply.
If your application is successful, read the tenancy agreement carefully before signing it. Check:
- the total monthly cost
- the tenancy period
- how the rent may be reviewed
- whether an extension may be available
- whether you may be able to buy the property
- what will happen when the tenancy ends
You can find more information about applying for Rent to Buy on GOV.UK.
What costs should you consider?
The advertised rent may not represent your full monthly housing cost.
Depending on the property, you may also need to pay:
- a service charge
- council tax
- utility bills
- contents insurance
- parking charges
- charges for communal facilities
Ask the provider how the rent and service charge may change during your tenancy. Your overall budget will need to cover these costs while leaving enough money for regular savings.
When you are ready to buy, you may also need money for:
- a mortgage deposit
- mortgage advice or arrangement fees
- legal fees
- valuation fees
- a property survey
- moving costs
- insurance
- furniture and household items
The deposit you need will depend on the mortgage, lender, property and your financial circumstances. Mortgage approval is not guaranteed.
Set a savings target that covers your likely deposit and other buying costs. Review it regularly because property prices and mortgage rates can change.
A qualified mortgage adviser can help you understand what may be affordable based on your circumstances.
You may also find these Guinness Homes guides useful:
- A guide to saving for a property deposit
- Deposits for Shared Ownership: how much do you need?
- The Guinness Homes buying process
Can a Lifetime ISA help you save?
Some first-time buyers may consider a Lifetime ISA, which can provide a government bonus on eligible savings.
Age limits, contribution limits, property conditions, minimum account periods and withdrawal charges apply. Check the current rules before relying on a Lifetime ISA for your deposit.
Read the current Lifetime ISA rules on GOV.UK.
What are the benefits of Rent to Buy?
Rent to Buy may offer:
- Lower rent: paying below the local market rate may leave more room in your budget for savings.
- Time to prepare: your tenancy gives you time to save towards a deposit and review your mortgage options.
- Flexibility over what you buy: you can use the money you save to purchase another suitable home.
- A possible Shared Ownership route: you may be able to buy the rented home through Shared Ownership if the provider agrees and you meet the relevant requirements.
What are the risks of Rent to Buy?
Points to consider include:
- You must manage your own savings: reduced rent does not guarantee that you will save enough to buy.
- You will still need a mortgage: your options will depend on your circumstances and the mortgage products available when you apply.
- Property values can change: if you can buy the rented home, its price may differ from its value when your tenancy began.
- You may not be able to buy the rented home: the provider must agree to the sale.
- Your tenancy may not be extended: an extension is not guaranteed.
- Your future options will depend on the tenancy: if you cannot buy or agree an extension, your landlord may take steps to end the tenancy through the relevant legal process.
- Availability is limited: Rent to Buy is only offered on selected properties.
You are not required to purchase a home simply because you have rented through the scheme.
If you decide not to buy or cannot obtain a mortgage, speak to your landlord before your tenancy ends. Do not assume that you can remain in the property or continue paying the discounted rent.
Is Rent to Buy available across the UK?
The Rent to Buy scheme described in this article is available in England outside London. Other parts of the UK have different arrangements.
London
London has a separate programme called London Living Rent. It provides discounted rented homes to eligible Londoners who want to save towards buying a home.
Eligibility, rents and property availability are governed by the London Living Rent programme and the individual housing provider.
Check the current London Living Rent guidance and use the Homes for Londoners property search to look for available homes.
Scotland
Scotland does not operate the English Rent to Buy scheme.
Separate support includes the Low-cost Initiative for First Time Buyers, known as LIFT. The Scottish Government currently identifies two LIFT shared equity routes:
- Open Market Shared Equity
- New Supply Shared Equity
Availability, priority groups, property-price limits and eligibility requirements apply.
Check the Scottish Government’s current LIFT guidance before applying.
Wales
The Rent to Own-Wales scheme is closed, and all homes provided through it have been built and let. The Welsh Government states that a small number of homes may become available in future.
Check the Welsh Government’s Rent to Own guidance and contact a participating landlord for current information.
Northern Ireland
Northern Ireland has separate homeownership arrangements.
Co-Ownership’s official website currently states that its Rent to Own programme is closed to new applications. Existing customers can still access information and submit requests relating to their current Rent to Own home.
Other homeownership support is available through Co-Ownership. Check the current programme information and eligibility requirements before applying.
Visit the Co-Ownership website or read its current Rent to Own information.
Frequently asked questions
Do you have to buy a home at the end of Rent to Buy?
No. You can use the money you have saved to buy another suitable home. You may be able to buy the property you rent, but this depends on your landlord’s agreement and the provider’s terms.
Is the purchase price fixed when you move in?
Do not assume that the price will be fixed. If the provider agrees to sell the property, ask how it will be valued and how the purchase price will be calculated.
Does the discounted rent include service charges and bills?
Not necessarily. Check the property information and tenancy agreement for the full monthly cost, including service charges, council tax, utilities and other charges.
What happens if you cannot buy before the tenancy ends?
Speak to your landlord as early as possible. An extension may be available, but it is not guaranteed. If you do not buy or agree an extension, what happens next will depend on the tenancy agreement and any steps taken by the landlord.
Explore your homeownership options
Guinness Homes provides Shared Ownership and private sale homes across a range of developments. These are separate from the Rent to Buy scheme described in this article.
Prices, availability, buying options and eligibility requirements vary by development.
View available Shared Ownership homes
View all Guinness Homes developments
This article provides general information about Rent to Buy and is not financial, mortgage or legal advice. Scheme availability, rents, eligibility requirements, tenancy periods, valuation arrangements and purchase options can vary between providers and properties. Check the individual property terms and current government guidance before applying. If you are considering a mortgage, you may wish to speak to a qualified mortgage adviser. If you need advice about your tenancy rights, consider seeking independent housing or legal advice.
Further information
- GOV.UK Rent to Buy guidance
- GOV.UK Lifetime ISA guidance
- London Living Rent
- Scottish Government LIFT guidance
- Welsh Government Rent to Own guidance
- Co-Ownership Northern Ireland
Information checked against current government housing guidance on 25 August 2026.
