Rent to Buy: how it works and who can apply

By Sam Kane · Last checked 9 October 2026

Rent to Buy is a government-backed scheme in England that lets you rent a new home for less than the market rent, usually about 20% less, so you can save for a deposit. Later, you can buy the home, either outright or through Shared Ownership. London has its own version, called London Living Rent. Scotland has no Rent to Buy scheme, and Wales has closed its scheme to new landlords.

The short version

How does Rent to Buy work?

  1. You rent a home from a housing association or council at an “intermediate rent”. The rent cannot be more than 80% of the market rent for the home, including service charges. GOV.UK says it is normally 20% below market rent.
  2. You save the difference. The idea is that the lower rent lets you build up a deposit.
  3. You get the chance to buy. The homes are expected to stay as Rent to Buy for at least 5 years. During or after that time, you may be able to buy the home outright with a mortgage, or buy a share of it through Shared Ownership.

Your rent can still go up each year, but Homes England’s rules limit each rise to inflation (CPI) plus 1%.

Do you have to buy the home?

No. Rent to Buy is a way to save, not a promise to buy. If you cannot get a mortgage, or decide not to buy, you are not forced to. If the landlord later decides to sell the home, you should get the first chance to buy it.

Who can apply for Rent to Buy?

To get Rent to Buy in England, you must:

There is no set minimum or maximum income in the national rules, but each landlord may have its own rules. The landlord may check your income and your credit history before you can rent.

How to apply for Rent to Buy

  1. Search for homes. Use the government’s shared ownership scheme service to find organisations that offer Rent to Buy homes near you.
  2. Check with your council and local housing associations. Some advertise Rent to Buy homes directly.
  3. Check the landlord’s own rules. Some have local rules, such as living or working in the area.
  4. Get your paperwork ready. Expect to show payslips, bank statements and proof of identity.

London Living Rent

In London, the Mayor’s London Living Rent scheme takes the place of Rent to Buy. To apply, you must:

The rent is based on local incomes, not local rents. The Mayor of London sets a maximum rent for each ward every year. For homes let in 2026 to 2027, no monthly benchmark is above £1,750. Tenancies are for at least 3 years, and yearly rent rises are limited to inflation (CPI). Providers are expected to help tenants into home ownership within 10 years, usually through Shared Ownership.

Homes are advertised on the Mayor’s Homes for Londoners property search.

Rent to Buy in Scotland, Wales and Northern Ireland

Nation What is available
England (outside London) Rent to Buy, through housing associations and councils
London London Living Rent
Scotland No Rent to Buy scheme
Wales Rent to Own Wales is closed to new landlords, but some homes may still be available
Northern Ireland Co-Ownership’s Rent to Own scheme is closed to new applications. Co-Ownership still offers Shared Ownership

Rent to Buy or Shared Ownership?

The two schemes often work together. Many Rent to Buy tenants go on to buy through Shared Ownership.

Rent to Buy Shared Ownership
What you do Rent at a lower rent Buy a share of the home and pay rent on the rest
Deposit needed at the start No Yes, usually 5% to 10% of the share you buy
Mortgage at the start No Yes, on your share
How much you own Nothing yet Between 10% and 75% at the start
Income limit in England None in the national rules £80,000 a year (£90,000 in London)

Is Rent to Buy a good idea?

It can work well if you have a steady income and you will really save the rent you do not pay. Some things to think about:

Is Rent to Buy the same as rent to own?

No. Rent to Buy is a government-backed scheme run by housing associations and councils. Private “rent to own” deals are set by the seller and are not part of it. Get independent legal advice before you sign one.

Getting ready to buy while you rent

A mortgage lender will look at your credit history. Your rent shows that you manage a big bill every month. Make your biggest bill count on your credit file: rent reporting adds your payments to your Experian, Equifax and TransUnion files, which may help build your history before you apply. See how rent reporting works. Read more in our guides to rent history and mortgages, what credit score you need for a mortgage and going from renter to first-time buyer. For saving, see how much deposit you need and the First Homes scheme.

Rent to Buy is one of several ways to make renting cheaper. Our guide to how much rent you can afford covers the others, and our Rent a Room Scheme guide explains how a lodger could help you save.

Common questions

How much cheaper is Rent to Buy?

The rent is normally about 20% below the market rent. It cannot be more than 80% of the market rent.

How long can I rent before I buy?

The homes are expected to stay as Rent to Buy for at least 5 years. You may be able to buy sooner. Ask the landlord about their timings.

Can I use Rent to Buy if I have owned a home before?

Usually not. It is for first-time buyers, but people returning to owning a home after a relationship breakdown can also apply.

Is there an income limit for Rent to Buy?

Not in the national rules for England, but the landlord may set its own. London Living Rent has a limit of £75,000 a year for the household.

Do I have to buy the home at the end?

No. You can choose not to buy. If the landlord later sells the home, you should be offered it first.

Can I get Rent to Buy in Scotland?

No. Rent to Buy is not available in Scotland.

Sources

You already do the hard part.

You pay your rent every month. From now on, your credit file can show it.

a month