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
We're expanding our collaborative mission by launching DB Intelligence, an exclusive market research advisory panel. Built environment professionals can now get paid to share their expertise on industry trends, products and services.
Panel members receive direct financial incentives for participating in research projects like short surveys, 1-2-1 interviews and focus groups. Register today to shape the future of the construction sector.
Planning condition discharge in England and Wales
A brief exoplanation from a building compliance expert, with further links.
Overheating guidance and tools for building designers
Guidance for dealing with element of building fabric control that have increasing importance.
Shading for housing, a design guide
From the Good Homes Alliance and British Blind and Shutter Association.
UK Standard Skills Classification (SSC)
A shared framework for describing skills needs.
Social media ban consultation comes to close
CIOB urges UK Government to consider social media’s role in careers guidance in ban debate.
The latest of eight Skills England apprenticeship units
The addition of battery manufacturing welcomed by ECA with a warning about the risks of fast-tracked apprenticeship units.
Building Control Independent Panel final report
A precis of a key report led by Dame Hackitt with full recommendations and link to the government response.
Building Safety recap April, 2026
A short and longer run-through of the month, with links to further information and sources.
CIAT May 2026 briefing.
From medieval scribes to modern word art.
ECA welcomes crackdown on late payment and push for clean energy, whilst CIOB seek fixed cladding removal timeframes.
Cyber Security in the Built Environment
Protecting projects, data, and digital assets: A CIOB Academy TIS.
Managing competence in the built environment
ITFG publishes new industry guide on how to meet the ICC principles.
The UK's campaign to reduce noise pollution: Mythbusting, articles and topic guides.