Rent to Buy

Rent to buy home ownership schemes offer future homeowners the opportunity to rent their homes under approved affordable rental schemes with a view to saving to eventually buy the house they are renting. The UK scheme launched in 2014 made available £400m in low-cost loans that housing associations could bid for to finance the construction of new homes that were then rented out at below-market rates for seven years minimum, during which time renters were incentivised to save for a deposit to buy the home. At the end of the seven years, tenants are offered the right of first refusal to buy the property.