Rent to Own

"Rent to own" is used loosely to describe three quite different routes. 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 organised by a provider. Depending on the model, the provider may own the home or pair you with a participating landlord, with part of your payments building towards a deposit. Terms, fees and exit rules are set by the provider, not by government.
• A rent-to-buy agreement with a private landlord: the landlord may be someone you already rent from or someone introduced through a company or intermediary. The old version of this deal no longer works as advertised, and the sections below explain why.

The rest of this guide covers the government scheme first, then compares the private providers, then looks at rent-to-buy agreements with private landlords, where the rules changed sharply under the Renters’ Rights Act 2025.

• A fixed term tenancy, typically two to five years, alongside a separate agreement giving you the right to buy at a set price, or at a price set by a formula.
• An upfront fee for that right, and a monthly payment above the going rate, with the extra credited towards your deposit or the purchase price.
• The idea was that you built a deposit pot while living in and looking after the home you intended to buy, then used it to qualify for a mortgage.

The appeal was real: you could live in the home you hoped to buy while building your deposit. The problem is that almost every part of that structure now clashes with the Renters’ Rights Act 2025.

• Tenancies are now open-ended. You can give two months’ notice and leave at any time, so a landlord can no longer tie the tenancy to the option period, and whatever the option agreement says, you cannot be held to stay.
• A landlord cannot lawfully require payments outside rent and the standard tenancy deposit. An upfront lump sum for the right to buy, or ongoing extra amounts credited towards a purchase, do not fit within what the law allows a landlord to ask for.
• Rent set above the going rate to fund those credits can be challenged in the first six months of the tenancy, with the rent brought down to the open market level.
• Money taken that is not clearly rent for a named period risks being treated as a tenancy deposit instead, which is capped and must be protected in a scheme.

The practical upshot for you: the deposit pot, which was the whole attraction of the old arrangement, cannot be funded the way it used to be. Housing associations still run a version of the idea at around 80% of market rent, which is the government Rent to Buy scheme covered earlier in this guide, but for a private landlord the model has effectively been closed.

• An option fee or any other lump sum asked for before the tenancy starts, or at the outset.
• Monthly "credits" on top of your rent, described as building your deposit or reducing the purchase price.
• A promise of a fixed term, or being told you must stay for the full option period.
• Being told you lose everything you have paid if you pull out.

• Is the extra money rent or something else, and for which period?
• Where is it held, and what happens to it if I cannot get a mortgage?
• Can my right to buy be registered against the property, so it survives if the home is sold to someone else?
• What is the price, or the exact formula, at which I could buy?

Whatever a side agreement says, you keep your normal tenant protections, and you can leave on two months’ notice. Never sign anything or pay anything before an independent solicitor has read both the tenancy agreement and the purchase agreement. That advice is not a formality: these arrangements sit exactly where tenancy law, consumer law and property law overlap, and only your own adviser can tell you whether a specific deal is lawful and safe.

There is one variant that fits within the new rules: where the landlord is genuinely undecided about selling. In that case, a landlord could grant a normal tenancy at the going market rent, with no upfront fee and no extra credits, alongside a standing promise to offer the home to you first at an agreed price or formula.

Be clear about what that is worth. It is a first refusal: valuable if you already want the home and the price is fair, but it is not a rent to buy. Nobody is building a deposit pot for you, and you save for your deposit exactly as any other renter would. Our Deposit Builder tool can show you what a realistic monthly saving plan looks like, and the Affordability and Deposit Alternatives guide covers other ways buyers bridge the gap, such as a family gifted deposit or a guarantor mortgage.

If a landlord wants to sell to you without the open market, the workable route is usually the simplest one: agree a price, exchange contracts and complete like any ordinary sale, with a mortgage and a solicitor. That is what we call a private treaty purchase, and we have a separate guide to it, including how to approach your landlord, get a valuation and negotiate.

• Exchanging contracts now with completion delayed to a later date, so you can build a deposit in the meantime. Both sides are locked in, the landlord’s lender has to consent, and delays create real problems for a seller who needs their money.
• Buying by instalments, paying the price off in stages. Deferred purchase arrangements can stray into regulated financial territory, and you carry real risk if the landlord’s own creditors have a claim on the property.
• A long lease at a low rent, with the intention to buy later. Leasehold complications and consents from the landlord’s lender and any freeholder make these fragile.

For you as a buyer, the same principle applies to every one of these: have your own solicitor and, for anything involving staged payments, take advice before committing. The ordinary purchase route comes with established protections; the unusual ones make you the guinea pig.

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 usually finds landlords willing to enter a rent-to-buy relationship and pairs them with prospective tenant-buyers. A participating landlord owns the property, while BeHomed arranges the pathway and agrees a fixed future purchase price with you. You pay a fixed monthly rent plus an additional monthly top up payment that builds towards 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