What is Rent to Buy?

For millions of people across the country, getting on the property ladder can feel like an impossible dream. With house prices too high and rents too much to leave room for any savings towards a deposit!


But there are options available. Two great schemes are Help to Buy and shared ownership. Both can massively increase the chances of achieving that home ownership dream. However, with both schemes you will still need a small deposit. So, what about those who have no deposit and whose rent is too high to save? Why not look out for Rent to Buy.


Rent to Buy is a government-designed scheme that allows working households to rent a home at 20% below the open market rent (intermediate rent). This can provide you with the opportunity to save for a deposit to go on and purchase your home in the future.

With Rent to Buy, you can live in a high-quality, new build home at intermediate rent (approximately 80% of the open market rent) for a minimum of five years. During that time, you will save towards a deposit.



How to get on the property ladder with Rent to Buy

Owning your home is easier with Rent to Buy!

Do you dream of owning your own home but are struggling to save a deposit while paying high rental prices? If so, the Rent to Buy scheme could be the answer for you.

Helping you build up the deposit you need

With Rent to Buy, you will be able to rent your new home for 80% of the market rate for up to five years. The lower rental payments then give you some breathing room to start building up a deposit. At the end of the rental period, the money that you’ve saved can then be used to help buy your property. Rent to Buy allows you to look forward to starting life in your new home as soon as your rental agreement begins, knowing that it will soon be yours to own.


Who is Rent to Buy for?

Saving for a deposit can be hard work, especially when you need to rent as you save. If you’re a first-time buyer or returning to the property market after a relationship has ended, Rent to Buy could help you to become a homeowner. You’ll also need to be currently working or self-employed and have an intention to buy your home in the future.


What happens at the end of the rental period?

At the end of the rental period you can use the money you’ve saved as a deposit to buy your home outright. If you are not quite ready to buy you can continue to rent at full market rent/intermediate rent. Or you can move out and find another property using the money you’ve saved as a deposit.

Rent to buy is a fantastic opportunity to live in the property and ‘try before you buy’!

Your landlord will likely be in touch to discuss your options with you at various points throughout your five year rental period. This gives you the opportunity to discuss the  various options to buying your home or for advice on applying for a mortgage or the stages of purchasing a property.


Other things to think about:

When working out if you can afford to Rent to Buy, remember that as well as your rent payments and saving for your deposit, you’ll also have to pay for your electricity, gas, water, home insurance and council tax. Plus, you may also have to pay a service charge to look after communal areas around your home.


Most Rent to Buy properties will come unfurnished and without flooring or blinds, this gives you the opportunity to put your own stamp on the property and decide your own décor and style. Your landlord should be able to provide assistance with the flooring, blinds or furniture.


To find out more about Rent to Buy or about our stunning brand new development Artifex, on the edge of Manchester City visit willohomes.co.uk


Chris Forrester






Chris Forrester

Property Sales & Marketing Manager

Willo Homes, part of Salix Homes