What is Rent-to-Buy?

Rent to Buy, also known as Rent to Own or Rent with Option to Buy, is a scheme in the UK that allows renters to rent a property with the option to buy it at a later date. It is a way for people who cannot afford to buy a property outright to get on the property ladder.

Under this scheme, the tenant pays a market rent to the landlord for a fixed period of time, usually between two to five years. During this time, a portion of the rent is set aside as a deposit towards the purchase of the property. This deposit is typically between 10-20% of the property's value.

At the end of the rental period, the tenant has the option to purchase the property at a pre-agreed price, using the deposit they have built up over time as part of the down payment. If the tenant decides not to purchase the property, they can simply walk away at the end of the rental period, with no further obligations.

Rent to Buy schemes can be a good option for those who are struggling to save for a deposit or who are unable to obtain a mortgage due to a lack of credit history or low income. However, it's important to carefully read and understand the terms and conditions of any Rent to Buy agreement before committing to it, as they can vary widely between different schemes and landlords.

If you're a tenant currently thinking about how to get on the property ladder, click here to read about our consultation service.  


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