How much deposit do you need for a rent to buy?

Your rental deposit when you first move into a rent to buy home is set by the landlord, and is typically 1 month's rent. This deposit is secured in a tenancy deposit scheme. You will also pay a down payment of £2,500. If and when you come to buy the property, after a period of saving, your purchase deposit will depend on the mortgage product you secure for the purchase. Currently the lowest deposit for a first time buyer is 5% of the purchase price. If at the time of purchase you are not able to save and borrow enough for the full market value of the property, many rent to buy schemes allow you to purchase a share of the property in a shared ownership scheme. You purchase the share that you can afford - with the deposit and mortgage you are able to borrow - and continue to pay rent on the remaining share.

Can I ask my landlord to rent to buy?

Rent to Buy is a government scheme, also known as Try Before You Buy, Rent Save Buy, Rent to Own, Intermediate Market Rent and other variations on the name. Rent to Buy is not available on your existing rental property, it is available on new builds only.

Rent to Buy Scheme Explained by SAM Conveyancing. A hand places a coin into a house-shaped money-box

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Rent to Buy Schemes, Explained

by:

Caragh Bailey

Last Updated: 05/10/2022

Read by:

317

4 min read

How often does someone in the UK ask themselves 'How can I save for a deposit, when I'm spending so much on rent?!' - We'd guess that number is pretty high. The Rent to Buy scheme is designed to help you save for that important deposit, while living in the home you hope to buy.

What does Rent to Buy mean?

Rent to Buy is a government scheme, which subsidises your rent on certain new build properties. You pay 20% less than market rent and save the difference toward your deposit. After a certain amount of time (usually at least 5 years), you will have to:

Buy the property;
Buy a part of the property, through shared ownership;
Apply to extend your time to continue renting and saving, or;
Move out of the property.

If you do not buy at this stage your landlord could sell the property to someone else, or continue renting the property at market rent.

There is very limited availability on these schemes and there are strict criteria to apply. The rental lease can be anywhere from 6 months to 5 years, but you can buy the home in full, or with shared ownership at any time.

Different housing associations have different terms, so it is extra important to check the terms carefully before you sign up.

How does rent-to-own work?

Rent to Own is the Welsh equivalent. Just like the English version, you rent for up to 5 years; however, you pay full market rent. Between the end of years 2 and 5 you have the option to buy the property.

When you apply to make the purchase you will receive 25% of all of the rent back, as well as 50% of any increase in the value of the property. This amount goes towards your deposit.

What is London Living Rent?

This is the Rent to Buy scheme in London. Tenancies run for a minimum of 3 years, during which time you will be prioritised for shared ownership homes - so you can buy a share of the property as soon as possible. The rent is subsidised by 33.33%, placing the average London Living Rental at around £1000 per month.

Am I eligible for rent to buy?

The affordability criteria are based on your household. This can be you alone, or you and a friend, or partner who you will live and purchase with. You must be working and earn together less than £60,000.

You must be intending to purchase your home within 5 years of the start of your lease and have a good enough credit rating to secure a mortgage when you come to purchase the property.

You must be a first time buyer, or you owned your own home in the past but cannot afford to purchase on the open market now. For example, your relationship with your previous joint owner has broken down and you can't afford to buy alone.

Each housing association will apply their own additional criteria, so you will need to check whether you are eligible with each one in your area.

Priority is often given to existing tenants of the housing association, or council tenants. If the development is on a rural development site, then you'll get priority as a current resident, or if you have a family or employment connection to the area.

How do I apply for rent to buy?

The first step to finding your rent to buy property differs in each country:

England	Search for Rent to Buy by Local Authority
London	Visit the Mayor of London's page to find out more and use the property search to find living rent properties.
Wales	Find your local Rent to Own Landlords
Northern Ireland	Apply through the Co-Ownership website

Scotland's Help to Buy scheme is now closed. There are shared ownership or shared equity options available through mygov.scot

Frequently Asked Questions

Deposit

Landlord

Written by: Caragh Bailey

Caragh Bailey is a Lead Property Content Specialist at SAM Conveyancing, having joined the firm in 2020. With a portfolio of over 150 technical conveyancing, house survey and mortgage guides, she has become a primary authority on the end-to-end sale and purchase process.

Caragh specialises in complex legal workflows, including Help to Buy redemptions, equity transfers, shared ownership structures, trust deeds for tax planning, and joint ownership disputes. Her expertise extends to leasehold reform and RICS home surveys, where she provides clear, factual guidance on independent legal advice for specialist mortgage products and intricate ownership structures.

Reviewed by: Andrew Boast

Andrew Boast FMAAT is a qualified accountant, conveyancing specialist and author with over 25 years of experience in the UK property sector. Since beginning his career in 2000 within established SRA and CLC-regulated conveyancing solicitor firms, Andrew has overseen the legal journeys of more than 75,000 clients.

He is the author of the property guide 'How to Buy a House Without Killing Anyone' and a frequent contributor to mainstream UK media on legislative updates, property law, first-time buyer guides, conveyancing best practices, and stamp duty changes. Andrew specialises in resolving complex title issues, property conflict disputes, and property tax options, streamlining the enquiry process to reduce transaction times and maintaining a client-friendly focus.

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