Rent to Own

"Rent to own" is used loosely to describe two quite different things. Knowing which one you are looking at matters, because the eligibility, the cost and the protections are not the same.

• Government Rent to Buy: a subsidised affordable housing product delivered by housing associations. You rent below market rent so you can save, then buy outright or through shared ownership. Allocation is usually through the housing association or local authority.
• Private rent-to-own: a commercial arrangement with a company that buys the home and lets it to you, with part of your payments building toward a deposit. Terms, fees and exit rules are set by the provider, not by government.

The rest of this guide covers the government scheme first, then compares the private providers.

Rent to Buy schemes allow you to rent a property at below market rate (typically 80% of the local market rent), with the intention of using the savings to build a deposit and eventually purchase the property or move into shared ownership.

Rent to Buy availability varies significantly by area. In London, the Mayor's London Living Rent scheme operates as a Rent to Buy product, with rents set at around a third of local household incomes, supporting tenants to save for a deposit and move into home ownership within 10 years.

Rent-to-own schemes provide a structured pathway from renting to owning a home. They are designed for people who have a steady income and can afford mortgage level monthly payments, but face one or more barriers to traditional home purchase.

• People with steady income but limited savings for a deposit
• Those who need time to improve their credit score or credit history
• Buyers who want to lock in a purchase price before property values rise further
• People who struggle to access traditional mortgages due to non standard employment or thin credit files

• You move into the property and pay rent (sometimes with an additional payment on top)
• Over an agreed period (usually 2 to 5 years), you build equity toward eventual ownership
• The purchase price is usually fixed at the start of the agreement
• At the end of the term, you purchase the property using a mortgage, using the equity you have built as your deposit
• With most schemes, if you choose not to buy, you can walk away, though you may lose some or all of the equity built

Model: Rent credits toward deposit. Founded 2021, London based.

Keyzy buys a property and rents it to you on a fixed term lease (typically 2 years) at a pre agreed purchase price. Up to 100% of your rent payments can be applied toward your deposit when you choose to buy. In November 2025, Keyzy secured £130 million in asset backed funding from Crayon Partners, enabling expansion from 28 properties to over 250 across Greater London by 2027. The company's first cohort of residents have now graduated from renting to owning.

Best for: Young professionals and key workers in London with decent income (£50,000 plus) but limited savings, who want active credit building alongside deposit accumulation.

Model: Property purchase service with deposit contribution. Founded 2019.

HomeNow buys a property that you choose. You move in, pay a fixed monthly rent, and at the end of the plan you receive a 5% deposit contribution based on the property's value at that time. In November 2025, HomeNow secured £65 million in funding to expand. The company now has properties across England and Wales, with residents in Kent, Surrey, Essex, the Midlands, Yorkshire, and North Wales.

Best for: People who want to choose their own specific property and are confident they will be mortgage ready within the plan term. Particularly suited to those comfortable with the obligation to purchase.

Model: Affordable rent-to-buy through housing associations. Registered Provider since July 2024.

Rentplus is the only provider in this guide that operates within the social and affordable housing framework. It buys new build homes through section 106 agreements and lets them at affordable rents through housing association partners. Tenants who go on to purchase receive a gifted deposit of 10% of the property's market value. Allocation is managed by local authorities, not by Rentplus directly.

Best for: Lower to middle income households who qualify through their local authority. Particularly suited to key workers and essential workers with a local connection who need genuinely affordable rent while saving toward ownership.

Model: Fixed rent plus top up payment. Launched 2024, Sussex based.

BeHomed buys a property at current market value and agrees a fixed future purchase price with you. You pay a fixed monthly rent (covering mortgage costs and investor returns) plus an additional monthly top up payment that builds toward your deposit. The model targets 100% ownership at the end of the agreement, unlike shared ownership.

Best for: People with steady income who want to lock in today's property prices and build a deposit through structured monthly payments over a 5 year period.

Model: Mortgage broker and savings platform. Founded 2020, FCA regulated.

Tembo Money is different from the other four providers in this guide. It is not a rent-to-own company that buys properties. Instead, it is a specialist digital mortgage broker and savings platform that connects buyers with a range of affordability boosting solutions, including access to rent-to-own schemes run by other providers. Tembo raised £16 million in February 2026 and had £3 billion in savings under administration by end of 2025. It has been voted Best Mortgage Broker at the British Bank Awards for four consecutive years.

• Mortgage brokerage: Searches over 100 lenders to find the best mortgage deal for your circumstances.
• Income Boost: Joint Borrower Sole Proprietor (JBSP) mortgages where family members' income boosts your affordability without them going on the property title.
• Deposit Boost: Family members can use their property equity to supplement your deposit.
• Lifetime ISA: Market leading LISA rates with the 25% government bonus, helping you build a deposit.
• HomeSaver: Combined savings and mortgage product offering competitive savings rates when you use Tembo's mortgage service.
• Access to rent-to-own and part buy schemes: Tembo can advise on shared ownership, no deposit rent-to-own options from other providers, and other alternative pathways.

Best for: Buyers who need expert mortgage advice on complex situations, those with family members willing to help financially, and anyone wanting a structured savings and mortgage platform. Not a rent-to-own provider itself, but a broker that can connect you to the right scheme.

Tembo Money is not included in this comparison table because it operates as a mortgage broker and savings platform, not as a rent-to-own provider. Tembo can advise on and connect you to schemes like those listed above.

• Total cost: What are all the costs, both upfront and ongoing? Include the joining fee, monthly payments, valuation fees, and any costs at purchase.
• Equity building: Exactly how does equity build month by month? Ask for a worked example showing the numbers over the full term.
• Exit options: What happens if I cannot or choose not to buy at the end? What do I lose? What fees apply?
• Extensions: Can I extend the lease if I need more time? On what terms?
• Property values: What happens if property values fall significantly? Is my purchase price still locked in?
• Final purchase price: How exactly is the purchase price calculated? Is it locked at the start or based on a future valuation?
• Track record: Can you show me evidence of residents who have successfully purchased? How many have completed?
• Legal protections: What legal protections do I have? Is the company regulated? What happens if the company fails?

Always have an independent solicitor review all agreements before signing. Do not rely on the provider's solicitor. Your solicitor should check: what happens if the company becomes insolvent; whether your equity is protected; what your rights are if you cannot purchase; and whether any restrictive covenants or resale restrictions apply.

Calculate the total cost of the rent-to-own route compared to saving for a deposit and buying traditionally. Include all fees, the premium you pay on rent above market rate (if any), and the opportunity cost of your initial contribution. Verify the company's financial stability by checking Companies House filings and looking for evidence of institutional backing.

Consult a mortgage broker early in the process, ideally before signing up. You need to be confident that you will realistically qualify for a mortgage at the end of the term. Understand the credit score, income, and deposit requirements you will need to meet. If you are on a 2 year scheme like Keyzy, you have limited time to improve your financial position, so start early.

• Pressure to sign quickly without time to seek independent advice
• Reluctance to answer detailed questions about costs, equity, or exit terms
• No verifiable physical office or web presence
• Promises of guaranteed outcomes
• No customer references or evidence of successful completions
• Unclear, inconsistent, or frequently changing terms
• Unwillingness to let your solicitor review agreements