The Benefits of Rent to Buy

Rent to Buy is a Government scheme which gives customers the opportunity to progress towards being on the property ladder.

The scheme allows a customer to pay a reduced rental amount towards a new build home, providing them with a chance to save for a mortgage deposit. Those eligible for Rent to Buy must live in the home they are paying the reduced rental amount for and between years 1 and 5, must decide whether to proceed down the Shared Ownership or the outright sale route. 

Let’s take a look at the benefits of Rent to Buy, so you can determine if it’s the right route to home ownership for you. 

1.Reduced Rental Costs

The reduced rental costs associated with Rent to Buy mean that saving for a mortgage deposit will be much more achievable. On average, subsidised rent is 20% less than the standard market value. When comparing to private renters, monthly outgoings towards rent will be significantly lower, meaning customers can work on saving to apply for a mortgage. 

2. Settle Into Your New Home

Rent to Buy offers the chance to move into a new home so the customer can begin to make it their own. They will have flexibility to make decorative changes to your home, however they will need to contact us to request permission for any structural changes. 

Not only this, but the customer can get used to their surroundings. They can settle into their new neighbourhood, get used to the commute to work or send their children to the local school, all in preparation for them to one day own their own home. 

3. Trusted Landlord

Compared to private renters, customers who choose Rent to Buy can rest in the fact that their landlord is a reliable and trusted landlord and can feel secure living in their new home. Not to mention that all defects that may occur in a new build home will be covered by Platform, until the customer chooses their route to home ownership. 

4. Ownership Options

Between years 1 and 5, Rent to Buy customers have the flexibility of choosing between two routes to home ownership: Shared Ownership and outright sale. Meaning that customers have the opportunity to assess which home ownership option is financially viable for them.