How does Rent To Buy work?
With Rent to Buy, you can rent a newly built home at 20% below the market rate for up to five years. This is to allow you to save for a deposit with the intention of buying the home. After the first year, you can apply to buy a share in your home to convert it to a shared ownership property. We will discuss with you the minimum share purchase and under what circumstances we will convert it to shared ownership. This is to make sure we don’t make a loss if market conditions change.
When you get to the end of your five year period, you can either buy the property or leave it. In some cases, we might consider renting the property to you at full market rent.
Why choose Rent To Buy?
- You get to live in a home that you can work towards purchasing
- You will have five years to save towards a deposit
- Shared ownership options may also be available to help you take the next step
Are you eligible for Rent To Buy?
- Your household earns £60,000 a year or less
- You are a first time buyer
(or you used to own a home but can’t currently afford to buy one on the open market)
- You have a good credit history
There is also a priority structure which is given to The Pioneer Group‘s existing housing association tenants and people that fit with local priorities, as well as first time buyers.
Saving for a deposit is one of the most difficult aspects of buying your own home, but by taking advantage of this option, a household could have a sufficient deposit in just under two and a half years!* Rent to buy is a great opportunity to get access to properties that you otherwise may not be able to afford, and as Pioneer Places are part of The Pioneer Group (a social landlord), we understand the difficulties a person may be experiencing in the housing sector at the moment.
(*For a shared ownership tenure based on savings generated between average market rent and Rent to Buy)
To apply for Rent To Buy, you first need to register with the governments Help To Buy scheme before speaking to one of our advisors about your preferred property.
Buyers are responsible for ensuring their approved application with Help to Buy is correct and up to date before proceeding with our advisors. Any information which is withheld or is proven to be incorrect may delay or affect any potential purchase.
Once your initial application has been registered we will also need to see the following from you to support your application:
- Proof of your income by way of your payslips for the last three months or a P60
- If you are self-employed we will need to see three years audited accounts
- Proof of identity such as a passport or driving licence
- Proof of address such as a recent utility bill
- A tenancy reference
(If you are renting your current home)
We will then check the information on your application form to make sure that you are eligible by carrying out an affordability check to ensure that you can afford your home now, and in the long term.
Following the success of these processes, we will be ready to welcome you into your brand new home!