Using rent to buy to get on the property ladder
Rent to buy, how it works.
To be eligible for the rent to buy scheme, you'll need to have a good credit score, and your household will need to have earnings of £60,000 or less per year. You'll either be a first-time buyer or someone who previously owned property, but you're no longer in a position to afford to buy one on the current open market.
The rent to buy scheme is government-run, it allows you to rent a new property at a reduced rate, typically around 20% below market value for up to a 5-year term. However, this may vary. The idea behind allowing those eligible for the scheme only to pay a rent which is 80% of the market value, is that it'll give you a chance to hopefully save up a deposit to either buy or part buy the property. At any point during your rental term, you'll have the opportunity to buy or part buy the property under the shared ownership scheme. However, once your term ends, you can either part buy your property under the shared ownership scheme or move.