Rent To Buy Homes With No Deposit UK
Stop Renting – Start Owning
1. Overview
The Rent to Buy scheme is a government-backed program created to help working tenants move from renting to owning their dream home. It allows you to rent at around 20% below market rent, giving you the breathing space to save a deposit and to buy your property in the future.
By paying less rent, you can gradually build your savings, making home ownership more achievable. The scheme is available throughout England (excluding London), where a separate initiative—London Living Rent—applies.
It’s not available in Scotland, and the Rent to Own scheme in Wales has now closed to new landlords, although some available properties may still be listed. Northern Ireland operates its own local version.
For many customers, Rent to Buy offers a middle ground: live in a home you love while saving for your future.
(Sources: gov.uk/rent-to-buy, hoa.org.uk, guinnesshomes.co.uk)
2. Eligibility
To qualify for the Rent to Buy scheme, you must:
- Be in full-time or part-time employment.
- Be a first-time buyer.
- Be able to make regular rent payments and save for a deposit at the same time.
- Possibly returning to home-ownership after a relationship breakdown.
Each provider checks your household income and credit history before approval. In some cases, your combined household income will determine the type or size of the home you can apply for.
This eligibility process ensures that you can realistically save your deposit for future buying and maintain regular payments.
3. How the Scheme Works
The Rent to Buy program is simple, flexible, and structured to help you become a homeowner step-by-step.
- Apply for a property within the scheme.
If eligible and the property is still available, it will be offered to you. - Move in and pay lower rent. You’ll live in your home for up to two years (and possibly extend to five) while paying rent at 80% of market rent.
- Save your deposit. Every month of less rent gives you more room to increase your deposit savings.
- Build a solid payment history. This strengthens your credit score and shows lenders you can manage a mortgage.
- Buy your home. Once your savings are enough and your finances are in order, you can apply for a mortgage and purchase your home either fully or through shared ownership.
If you keep up with your payments (for rent) and meet the terms of your tenancy agreement, you’ll stay eligible to purchase your home when ready.
4. How to Apply
If you live in England (excluding London), you can find properties by using the Shared Ownership and Rent to Buy search service.
Local councils and housing associations often list homes on their own sites. The process typically includes:
- Completing an application form.
- Submit proof of income.
- Passing an affordability and credit check.
Once approved, you’ll sign a tenancy agreement that outlines your rent, savings expectations, and next steps toward buying your home.
If you live in London, the London Living Rent scheme operates instead.
Get the keys to your future home today, with a plan to buy it tomorrow.
5. Buying a Home
When your savings are ready, you can buy your home or another property through an affordable home-ownership program.
If you want to buy the home you’re renting:
You may purchase it if your landlord agrees. If they decide to sell, they must first give you the option to buy at its current market value—this could be higher or lower than when you started renting.
If you choose Shared Ownership:
You can buy a percentage of your home and increase ownership over time. To do this, you’ll need:
- Your landlord’s agreement.
- Enough savings to buy a share.
- A mortgage offer.
- Compliance with shared ownership eligibility rules.
This process allows flexibility depending on your savings and long-term plans.
6. Long-Term Commitment
Choosing Rent to Buy means making a long-term commitment, typically lasting up to five years. During this period, you’ll make regular payments for the rent at a reduced rate while saving your deposit (to buy the property).
This shows your dedication to achieving home-ownership and sets you apart from traditional renters.
However, you must remain realistic—if your financial situation changes or you cannot obtain a mortgage later, you may not be able to purchase property.
Still, this programme structure gives customers structure and time to prepare, offering a clear path toward owning a home in the UK.
7. Moving into Your New Home
Once you complete the application and approval procedure, you can move into your home and begin enjoying all the benefits. The reduced rent helps you grow your deposit, and you’ll have stability while preparing for ownership.
After five years, you’ll have the option to buy the property outright or through shared ownership.
This flexible, affordable route helps you climb the property ladder at your own pace. With Rent to Buy, you’re not just renting—you’re investing in your future and working toward your home.
8. Benefits and Considerations
| Advantages | Considerations |
|---|---|
| Pay lower rent (20% discount from market rent). | To buy, you must still save enough deposit. |
| Build your deposit while living in your home. | The purchase price depends on future market value. |
| Stability and a clear arrangement. | Limited choice of available properties. |
| Boost your credit history for lenders. | Requires a steady income. |
9. Practical Tips Rent to Buy
- Track your deposit progress each month.
- Set up automatic transfers to your savings account.
- Plan your meeting with a mortgage advisor early.
- Review your income and spending habits.
- Understand all legal terms before signing.
- Use the official Rent to Buy portal for reliable listings.
Stop pouring money into rent. Invest it in your future instead.
10. Summary Rent to Buy
Stop Renting. Start Owning.
The Rent to Buy program offers an opportunity for working families and individuals to move from renting to owning. By paying lower rent, building your deposit, and following a clear process, you can achieve your goal of owning your home.
As a company with many years of experience, Step by Step Financial Solutions Ltd specialises in supporting customers applying for Rent to Buy and other government mortgage programs.
If you’d like to check your eligibility or learn about your next steps, contact us today for a free consultation.
Stop pouring money into rent. Invest it in your future instead.
Frequently Asked Questions (FAQ)
Is Rent to Buy hard to get?
Qualifying for Rent to Buy requires meeting certain criteria, including being in employment, being a first-time buyer, and passing an affordability assessment. While the scheme is designed to help working tenants move onto the property ladder, you must demonstrate you can afford the reduced rent and save for a deposit. Approval depends on your household income, credit history, and ability to maintain regular rent payments. Meeting these requirements can be challenging for some, but the scheme aims to support those genuinely ready to progress toward home ownership.
Is it possible to buy a house with 0 deposit?
Buying a house with a Deposit-free mortgage for renters is possible in some cases, especially through government-backed schemes like Rent to Buy. This scheme allows tenants to rent at around 20% below market rent, enabling them to save money each month to build up a deposit over time or, in some cases, proceed with little or no initial deposit.
Rent to Buy offers a practical alternative to traditional mortgage routes, helping first-time buyers and those returning to home ownership gradually prepare financially for purchasing a home. While many buyers still need a deposit to secure a mortgage, certain options within the scheme, such as shared ownership, may require a lower or no deposit at the initial point of purchase.
Bank Skipton No Deposit Mortgage for Renters
Bank Skipton offers mortgage options that may require little to no deposit for eligible renters. This can help renters transition more easily into home ownership without the immediate need for a large upfront payment.
It’s advisable to check Bank Skipton’s specific criteria and speak with their mortgage advisors to explore available options tailored to your financial situation.
How much deposit do you need for a Rent to Buy house?
With Rent to Buy, you typically need a deposit of around 5% to 10% of the property’s purchase price to secure a mortgage.
Renting at about 20% below market rent helps you save this deposit over time. You can buy the home outright or opt for shared ownership, purchasing a share and paying a smaller deposit. Remember to also budget for additional costs like legal fees and stamp duty.
Planning your savings and consulting a mortgage advisor early can help you prepare for buying your home.
Disclaimer
This article is for information purposes only and does not constitute financial or legal advice. The content provides general information and should not be relied upon as professional guidance. Always consult qualified professionals before taking financial actions. The author accepts no responsibility for actions taken based on this article.
Risk Warnings
Your home may be repossessed if you do not keep up with repayments on your mortgage.
Step by Step Financial Solutions Ltd is an Appointed Representative of Stonebridge Mortgage Solutions Ltd, which is authorised and regulated by the Financial Conduct Authority.
Registered Office: Unit 314, Solent Business Centre, 343 Millbrook Road West, Southampton, SO15 0HW.
Registered Company Number 08946989 in England & Wales.
