The rent to buy scheme is designed to aid in the transition from the private rented sector into owning your first home. The rent you pay will be subsidised to allow you the chance to save for a cash deposit so you can apply to buy a share of you home later.
New homes under this scheme are available to rent at a reduced rate of 80% of local market rates. You will then have the option to buy your home after your first five years of renting. If after five years you still intend to buy but need more time to save, your landlord can agree to extend your rental agreement with the option to purchase as soon as you have saved enough for the deposit.
In some cases, you may be able to buy a share of the ownership and enter a part rent part buy scheme. It is important note there is no obligation to purchase within your lease period if this becomes financially unviable.
Rent to buy schemes in Wigan Borough are administered by various housing associations or registered providers of social housing.
Who can apply?
This scheme is tailored to first-time buyers as it looks to ease the transition into buying a home by allowing the chance to save for a cash deposit. You will need to be:
- in full or part time employment
- a first-time buyer
- able to pay your rent and save for a deposit at the same time.
You may also be eligible if you are returning to home ownership following a relationship break down. Visit the GOV.UK Rent to Buy website for more information on eligibility.
Do I need to buy my house?
Although it is the expectation that the period of subsidised rent will give you the opportunity to save for a cash deposit:
- If you are unable to afford the purchase of the home, you will not be expected to do so
- In some cases, you may be able to buy a share of the ownership and enter a part rent part buy scheme known as Shared Ownership where a share of either a 35%, 50% or 75% can be purchased initially with a rental amount due on the remaining share
- It is important note there is no obligation to purchase within your lease period if this becomes financially unviable.
Rent to buy schemes in Wigan Borough are administered by various housing associations or registered providers of social housing.
Can I buy the property before the tenancy ends?
If you wish to buy the property before your tenancy ends, depending on your provider you may be entitled to do this at any time:
- If your landlord agrees and you can get a mortgage for the share you wish to purchase
- Some providers allow you to purchase your home from them on a shared ownership basis after year 1, with the possibility to buy outright after 5 years.
If your landlord decides to sell the property during your tenancy, they must give you the option of buying the property in the first instance.
Property price will be dependent on its market value and therefore may change during your tenancy.
What is the difference between rent to buy and Affordable rented properties?
Although both schemes offer subsidised rent set a minimum of 80% of the market rent value:
- Affordable rented properties are properties intended for continued rental use
- Rent to buy homes are for those with the intention to purchase the property in the future when or if this is financially possible, and the subsided rent is used to aid in the saving of a deposit for the property.
Rent to buy homes help you to settle into your surrounding knowing you will have the option to buy your rent home.
Who has priority?
Depending on your chosen scheme and register provider some may give priorities to certain groups. We recommend discussing any interest with the registered provider for your chosen scheme to ensure you meet their eligibility criteria.
Our list of Properties available to buy indicates whether they are available as Rent to Buy or not. You apply directly to the Rent to Buy scheme provider, therefore do not fill in the online application form for Wigan Council. For more information, visit the relevant provider websites.