Rent to buy
The ‘rent to buy’ scheme was launched by Communities Secretary Eric Pickles in September 2014. It is part of the affordable homes initiative, which also includes ‘help to buy’ and ‘right to buy’.
Rent to buy allows housing associations and other private housing providers to bid for low-cost loans to build new homes. These will mainly consist of 1 and 2 bedroom apartments. Half of the funding will be made available in London, with London-based housing providers bidding for funding through the Greater London Authority (GLA).
Housing providers must then make the homes available for rent at below-market rates for a minimum of 7 years, that is, at up to 80% of market rent. This 7-year period is intended to give tenants the time to save up for a deposit to buy the home. At the end of the period, the tenant will have first refusal to buy the property.
Housing providers have the flexibility to repay the loan at any time but must repay it no later than 16 years after construction of the funded homes. Only once the loan is repaid can the housing provider sell or rent out the homes at a market rate.
Communities Secretary Eric Pickles said, “As part of our wider housing programme, this new scheme will help increase the provision of low-cost rented accommodation and provide a springboard for young people to upgrade to home ownership down the line.”
The Mayor of London at that time, Boris Johnson, said, “Loans are available to significantly accelerate the pace of development, especially on bigger schemes, and unlock additional supply. Through this exciting new fund we hope to provide thousands of brand new homes many years sooner than would otherwise be possible, and make them available to rent at below market rates for hardworking Londoners.”
[edit] Related articles on Designing Buildings Wiki
- Affordable housing.
- Affordable rented housing.
- Build to rent.
- Help to buy.
- Housing associations.
- Intermediate housing.
- Real Estate Investment Trusts.
- Right to rent.
- Scotland reaches homebuilding milestone in 2021.
- Section 106 agreements.
- Social rented housing.
[edit] External references
Featured articles and news
Buildings that changed the future of architecture. Book review.
The Sustainability Pathfinder© Handbook
Built environment agency launches free Pathfinder© tool to help businesses progress sustainability strategies.
Government outcome to the late payment consultation, ECA reacts.
IHBC 2025 Gus Astley Student Award winners
Work on the role of hewing in UK historic conservation a win for Jack Parker of Oxford Brookes University.
Future Homes Building Standards and plug-in solar
Parts F and L amendments, the availability of solar panels and industry responses.
How later living housing can help solve the housing crisis
Unlocking homes, unlocking lives.
Preparing safety case reports for HRBs under the BSA
A new practical guide to preparing structural inputs for safety cases and safety case reports published by IStructE.
Male construction workers and prostate cancer
CIOB and Prostate Cancer UK encourage awareness of prostate cancer risks, and what to do about it.
The changed R&D tax landscape for Architects
Specialist gives a recap on tax changes for Research and Development, via the ACA newsletter.
Structured product data as a competitive advantage
NBS explain why accessible product data that works across digital systems is key.
Welsh retrofit workforce assessment
Welsh Government report confirms Wales faces major electrical skills shortage, warns ECA.
A now architectural practice looks back at its concept project for a sustainable oceanic settlement 25 years on.
Copyright and Artificial Intelligence
Government report and back track on copyright opt out for AI training but no clear preferred alternative as yet.
Embedding AI tools into architectural education
Beyond the render: LMU share how student led research is shaping the future of visualisation workflows.
Why document control still fails UK construction projects
A Chartered Quantity Surveyor explains what needs to change and how.
Inspiration for a new 2026 wave of Irish construction professionals.
New planning reforms and Warm Homes Bill
Take centre stage at UK Construction Week London.