Rent to Buy: how the scheme works

Saving for a deposit can feel slow when rent takes a large part of your income. Rent to Buy offers some homes at a reduced rent, normally 20% below the local market rent, giving you more room to save.

The scheme operates in England outside London, where London Living Rent provides a separate option. You can only apply for participating homes, so availability depends on your area. Crucially, your rent does not buy a share of the property: you build your mortgage deposit separately.

How the Rent to Buy scheme works

Who is eligible for Rent to Buy?

You normally need to work full or part time, be a first-time buyer and be able to pay rent while saving for a deposit. You may also qualify if you previously owned a home but cannot afford to buy following a relationship breakdown.

Each provider checks your circumstances, including household income and credit history. It may set extra eligibility requirements or give priority to people with a local connection. A single £80,000 income cap does not apply across all Rent to Buy homes. Check the advertised criteria before spending time on an application.

How reduced rent could support savings

This example shows what a 20% rent reduction could leave available to save. It assumes the market rent stays the same.

Saving the full £200 each month would build £2,400 over a year. Your actual savings will depend on bills, moving costs and other spending. Rent can also change under your tenancy terms.

You may need a rental deposit and rent in advance before moving in. Budget for these separately from the mortgage deposit you hope to build.

Treat the rent reduction as a chance to build a savings habit. Moving the amount you can afford into a separate savings account each month can help you track progress. Keep some money available for unexpected bills, so one large expense does not undo your plans.

Finding a home and applying

Start with local housing associations and council housing websites, or use the government’s Rent to Buy application guidance to find providers. Availability can be limited, so check which homes are open for applications.

Read the listing for local conditions and income requirements. Ask what evidence you need: this may include payslips, identification and details of your savings and regular spending.

Before accepting a home, check the tenancy length, upfront payments, rent reviews and purchase terms. Ask what happens if you are not ready to buy when the tenancy ends. Muttuo can help with mortgage planning, while the housing provider handles your rental application and allocates the home.

What happens when you can buy?

Once you have enough savings, you can explore buying any suitable home on the open market or through an affordable home ownership route. You do not have to buy the property you rent.

YOUR HOME

Buying the home you currently rent

To purchase your home from the landlord, you need its agreement to sell. The price reflects its market value at the time, which may have risen since you moved in. Shared ownership may be possible if the landlord offers it and you meet the scheme and mortgage requirements.

YOUR BUDGET

Checking your borrowing and purchase costs

A lender will assess your income, spending, credit history and chosen property. Use our mortgage calculator for an initial estimate of borrowing and repayments, then discuss your circumstances with an adviser.

Allow for legal fees, a survey and moving expenses alongside your deposit. A larger savings balance does not guarantee a mortgage, so checking your likely borrowing and purchase costs together can help you set a realistic price range before committing.

YOUR TIMING

Allowing more time to save

If you need longer to save, speak to the provider early. Tenancy lengths and extensions vary; neither a universal five-year deadline nor an automatic extension applies to every home.

Rent to Buy and related schemes

Our overview of first-time buyer schemes helps you compare these routes with other support.

What to consider before you apply

How Muttuo can help

Muttuo compares options from more than 100 lenders across the market. We can help you understand realistic borrowing and prepare for a mortgage.

Explore borrowing against your budget

Understand your likely deposit needs

Prepare for your mortgage application

Plan your next step towards buying

Talk through your circumstances and the mortgage options that could fit your plans.

Speak to Muttuo →

Your home may be repossessed if you do not keep up repayments on your mortgage.

Common Rent to Buy questions