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
Shading for housing, a design guide
A look back at embedding a new culture of shading.
The Architectural Technology Awards
The AT Awards 2025 are open for entries!
ECA Blueprint for Electrification
The 'mosaic of interconnected challenges' and how to deliver the UK’s Transition to Clean Power.
Grenfell Tower Principal Contractor Award notice
Tower repair and maintenance contractor announced as demolition contractor.
Passivhaus social homes benefit from heat pump service
Sixteen new homes designed and built to achieve Passivhaus constructed in Dumfries & Galloway.
CABE Publishes Results of 2025 Building Control Survey
Concern over lack of understanding of how roles have changed since the introduction of the BSA 2022.
British Architectural Sculpture 1851-1951
A rich heritage of decorative and figurative sculpture. Book review.
A programme to tackle the lack of diversity.
Independent Building Control review panel
Five members of the newly established, Grenfell Tower Inquiry recommended, panel appointed.
Welsh Recharging Electrical Skills Charter progresses
ECA progressing on the ‘asks’ of the Recharging Electrical Skills Charter at the Senedd in Wales.
A brief history from 1890s to 2020s.
CIOB and CORBON combine forces
To elevate professional standards in Nigeria’s construction industry.
Amendment to the GB Energy Bill welcomed by ECA
Move prevents nationally-owned energy company from investing in solar panels produced by modern slavery.
Gregor Harvie argues that AI is state-sanctioned theft of IP.
Experimental AI housing target help for councils
Experimental AI could help councils meet housing targets by digitising records.
BSRIA Occupant Wellbeing survey BOW
Occupant satisfaction and wellbeing tool inc. physical environment, indoor facilities, functionality and accessibility.