Rent to HomeBuy
In Rent to HomeBuy you pay reduced rent on a new-build home, enabling you to save for a deposit and then purchase the property.
If you are having trouble obtaining an affordable mortgage without a deposit, you may be eligible to take part in Rent to HomeBuy. In the scheme, you pay ‘intermediate rent’ – which is no more than 80 percent of the current market rent – on a new-build home for up to five years. You use the time that you’re paying reduced rent to save up for a deposit so you can obtain a mortgage and purchase your home.
How the scheme works
At the end of the intermediate rent period, or earlier if you prefer, you are able to buy your home through the New Build HomeBuy shared ownership scheme. Your HomeBuy agent helps you to determine the proportion of the property that you can afford to purchase, which has to be between 25 and 75 percent of the property’s value. You continue to pay rent on the share that you don’t own and as you become able to afford it, you can buy further shares until you own 100 percent of the property.
If you are not able to buy the property at the end of the intermediate rent period, your landlord will review your position. Landlords consider each case on its individual merits but there is no guarantee that your tenancy will be renewed.
Eligibility criteria
You may be eligible for Rent to HomeBuy if you are a first-time buyer with a yearly household income of up to £60,000.
How to apply
Rent to HomeBuy is a pilot scheme and at this time it is only available in certain areas. Please contact your local HomeBuy agent to find out what options are available in your area. If you are a key worker, you should contact a HomeBuy agent for the area where you work.
Last updated: 5 June 2009