What is Rent to Buy?
Rent to Buy is a government scheme that allows you to rent a property at a subsidised rent of 80% of the market value for up to 5 years. This enables you to save a deposit to then go on and purchase the home. You have the option to apply to buy the home outright after five years or on a shared ownership basis within 5 years, subject to the housing associations approval.
Am I eligible?
Eligible applicants must meet the below criteria:
- Be looking to buy a home but unable to save for a deposit.
- First time buyers.
- Previous homeowners that have had a change in circumstances such as a relationship breakdown.
- Be over the age of 18.
- Applicants must not have an income in excess of £80,000 per annum.
- The property must be the applicant’s main and only residence.
- Be in employment and have a good credit history in order to pass referencing.
- Be a British or EU/EA citizen or have indefinite leave to remain in the UK.
How do I apply?
You’ll need to apply to the housing association direct. Your application will be assessed and put through external credit referencing and an affordability assessment. If accepted, you can pay a holding deposit on the property you are interested in.
Rent to Buy FAQ's
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What is a tenancy agreement?
When you become a Rent to Buy tenant you sign a tenancy agreement which is a legal document that sets out what RBH’s responsibilities are as the landlord and what your responsibilities are as the tenant. By signing the tenancy agreement, you are only committing to rent the property in accordance with the tenancy terms. You are not committing to buy the property and we are not committing to sell.
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How long is the tenancy agreement?
A tenancy agreement with RBH under the Rent to Buy initiative is for 12 months. This doesn’t mean you have to move after 12 months though. If you pay your rent, meet the terms of your tenancy agreement and want to stay living in the property we will renew your tenancy for a further 12 months.
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What costs will I need to pay?
You will be required to pay a month’s rent in advance and a month’s rent as a deposit that will be lodged with a government approved deposit protection scheme.
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Who will carry out repairs to my property?
As a tenant you’re expected to look after your home, but RBH as the landlord are responsible for day to day repairs.
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What happens if I want to leave the property?
You are not obliged to stay at the property for the full 5 years. If you want to terminate your tenancy agreement you can do so by providing 4 weeks’ notice at the end of your fixed term period.
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How much will the house be to buy?
The property will be sold to you at the current market value at the time of purchase.
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What if I can’t afford to buy the house after 5 years?
If you are unable to purchase the property RBH will review and either decide to re-let to a tenant wanting to buy a home or continue to let to you at an affordable rent tenure.