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
Futurebuild and UK Construction Week London Unite
Creating the UK’s Built Environment Super Event and over 25 other key partnerships.
Welsh and Scottish 2026 elections
Manifestos for the built environment for upcoming same May day elections.
Advancing BIM education with a competency framework
“We don’t need people who can just draw in 3D. We need people who can think in data.”
Guidance notes to prepare for April ERA changes
From the Electrical Contractors' Association Employee Relations team.
Significant changes to be seen from the new ERA in 2026 and 2027, starting on 6 April 2026.
First aid in the modern workplace with St John Ambulance.
Ireland's National Residential Retrofit Plan
Staged initiatives introduced step by step.
Solar panels, pitched roofs and risk of fire spread
60% increase in solar panel fires prompts tests and installation warnings.
Modernising heat networks with Heat interface unit
Why HIUs hold the key to efficiency upgrades.
Reflecting on the work of the CIOB Academy
Looking back on 2025 and where it's going next.
Procurement in construction: Knowledge hub
Brief, overview, key articles and over 1000 more covering procurement.
Sir John Betjeman’s love of Victorian church architecture.
Exchange for Change for UK deposit return scheme
The UK Deposit Management Organisation established to deliver Deposit Return Scheme unveils trading name.
A guide to integrating heat pumps
As the Future Homes Standard approaches Future Homes Hub publishes hints and tips for Architects and Architectural Technologists.
BSR as a standalone body; statements, key roles, context
Statements from key figures in key and changing roles.
Resident engagement as the key to successful retrofits
Retrofit is about people, not just buildings, from early starts to beyond handover.