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The ‘Rent to Buy’ scheme is ideal for those looking to move from renting to owning a property. For some properties, you’ll be able to pay reduced rent and save up for the deposit of your home. It’s also a great opportunity to get to know the area and community before you commit. So, what do you need to qualify for ‘Rent to Buy’?
In order to qualify for the ‘Rent to Buy’ scheme, you’ll need to meet a few criteria. You must be a first-time buyer and in either full or part-time employment. You’ll also need to be able to pay the rent on your property, at the same time as saving for a deposit. You might also be eligible for ‘Rent to Buy’ if you are re-entering the property market after a personal issue and can’t afford to buy a home.
Read on to find out more about the ‘Rent to Buy’ scheme and if you’re eligible.
This scheme is designed to help you save for a deposit to buy a home, while renting a property at a discount. Typically, you’ll be paying rent at around 20% less than market rate. This gives you time to save for a cash deposit, with the expectation that you buy the home, or a share of it, when you can afford to. After your tenancy ends, you can either purchase the property or shares, or move out.
‘Rent to Buy’ is available across England, except for London. Homes in London are covered under a separate scheme, called ‘London Living Rent’. ‘Rent to Buy’ isn’t available in Scotland, with Wales and Northern Ireland both having different schemes.
As mentioned above, there are a number of requirements you need to meet before you can apply to be part of the scheme:
There may be further criteria you may need to meet in order to qualify, depending on your housing development or the association your property is offered through. For example, like many schemes, some properties may prioritise those who live or work in the area.
You can use money you have saved for a deposit on any home, including those in other affordable ownership schemes. This means you’re under no obligation to purchase the home you’ve been renting and can use your savings to put down a deposit on another property.
However, if you are happy with your property and would like to buy it, your landlord will need to agree. You’ll pay for current market value, which may be more or less than when you first rented your home.
You could also buy the property you’re renting through ‘Shared Ownership’, by meeting the following criteria:
For over 20 years, Plumlife has been making home ownership easier with a number of solutions, including ‘Rent to Buy’, ‘Shared Ownership’, and outright sales. We manage over 6,000 properties across the North West and you can be sure each property, and its potential buyers, are handled by our friendly team through high-quality services.
Have any questions about the ‘Rent to Buy’ scheme and how you can start your journey into home-ownership? Get in touch today!
The ‘Rent to Buy’ scheme allows you to try a property you might consider buying, before you commit to purchasing it. You’ll pay reduced rent, typically over a period of three to five years, with the scheme giving you time to save for a deposit.
Here’s an example of how your savings could work if you decide to take part in this scheme:
Take a look at the properties we have available in the ‘Rent To Buy’ scheme.
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