Low cost ownership home schemes

Rent to buy

Rent to Buy is a scheme which allows working households to rent a home from a housing association, on an Assured Shorthold Tenancy, for a year at a time, at a lower rent, which is 80% of the market rent in the area.

The reduction in rent gives you an opportunity to live in a new, affordable home while you save towards a deposit to purchase the property within 5 years. It can help if you can’t currently get a mortgage or can’t afford to raise a deposit.

Eligibility

At least one tenant must be in full or part-time employment and intend to buy the home in the future. You normally need to be a first time buyer.

However, housing associations may consider applicants who are looking to return to home ownership (e.g. following a relationship breakdown).

You must:

• be at least 18
• have the right to live and rent a property in the UK
• have an income less than that required to buy a home on the open market. The maximum household income per annum is £80,000.

Buying the property

You do not have to wait 5 years to buy but can buy whenever you can afford to. Some housing associations will sell on shared ownership if the tenant can’t afford the full amount.

You will need to have adequate funds to cover legal fees, survey costs and mortgage fees which could total around £2,000. You will also need a deposit for the mortgage.

Find a property

These properties will advertised by the housing association and some may be on our Keyways website.

Last updated 01 April 2023