Rent To Buy

Discover how the Rent To Buy scheme works.

When you’re not quite ready to buy a new home, and need a little help saving towards a deposit, Rent to Buy could be the perfect option for you.

What is Rent to Buy?

Rent to Buy is a government scheme designed to transition you from a renter into a homeowner.

Homes under the Rent to Buy scheme have subsidised rents, which means they are often priced at up to 80% of which you would expect to pay for a similar property on the open market. The aim of renting a home through Rent to Buy is to save the extra money you would be spending on renting privately to put towards your deposit to buy your home.

At the end of your tenancy, you may have the option to buy a share of the home you’re renting in, through Shared Ownership or outright. Alternatively, you can use your deposit to purchase another property.

Rent to Buy allows you to rent and save for your deposit now and then when you’re ready, buy later.

Rent to Buy is available on properties outside of London. Properties in London are covered by a separate scheme called London Living Rent.

How are the rents calculated?

The rent you pay on a Rent to Buy property is set at 20% below the market rent for a similar property on the open market.

Am I eligible for a Rent to Buy property?

To rent a home through Rent to Buy with L&Q, you must:

Be a first-time buyer
Be in full-time employment
Have the right to rent – proven by possession of British/EU/EEA Citizenship or a valid UK residency visa
Meet the minimum income and affordability standards – this will depend on the price of the home you are interested in. Minimum income requirements should be used as a guide and can vary depending on a household’s circumstances and financial commitments
Have the intention to purchase a home at the time of application

You must not:

Own any other residential home in the UK or abroad or be in the process of buying a property
Have an adverse rental history, this includes rent arrears or damage to a property
Have a history of bankruptcy, defaults which include late payments, county court judgments (CCJs) or Individual Voluntary Agreements (IVAs)

For some properties, there may be additional criteria such as priority given to those who currently live or work in the area which is specified by the local authority. Please note, Shared Ownership eligibility criteria will apply on your Rent to Buy home, L&Q cannot guarantee you will meet future affordability requirements should you wish to buy a Shared Ownership home once your tenancy has ended.

Rent to Buy Frequently Asked Questions

How long is a Rent to Buy tenancy?

The tenancy is two years, providing stability in a fast-paced rental market.

Do I have to save money each month?

During your tenancy, we are on hand to help you and check in on your savings goals. We will provide you with any information you need on buying your Rent to Buy property so you’re fully prepared when the time is right.

Do I have to buy the home I am renting in?

We understand that circumstances can change over five years therefore there is no obligation to buy your Rent to Buy home with us. After your tenancy has come to an end and you cannot buy the home you have rented, you will be required to move out of the property.

What happens if I cannot afford to buy the home I am renting in?

We will work with you to assess what purchase options are best suited to your financial circumstances.