How it works

What is Rent to Own?

If you want to own your own home, but can’t get the mortgage, Rent to Own might be for you.

It’s a fixed-term rental commitment. You rent the property and are legally a tenant, but you get the benefits of living in the home you want now, with a plan to own it later.

You choose the property, and we buy it for you. There are no extras or booking fees to pay.

How does it work?

You commit to a 3-year payment plan:

  • You pay a down payment of £2,500.
  • You get 25% of your money back on the rent you pay.

Together, they build up a lump sum that’s used as a deposit against a mortgage at the end of the 3-year tenancy.

For more information, please download our information pack.

Am I eligible?

To be eligible for Rent to Own, you must:

  • Be working – this can include being self-employed or being in temporary work.
  • Be able to pay your rent
  • Manage your money well
  • Want to own your own home, and see yourself living there in 3 years time.
  • Be unable to get a mortgage, Co-Ownership and housing benefit.

We’ll assess your circumstances, and find out if you can’t enter home ownership at this stage.

What sort of property can I choose?

To be suitable for Rent to Own, the property must:

  • Be a new build starter home (no previous occupants), with a 10-year warranty.
  • Have a purchase price of less than £165,000.
  • Have more than one bedroom.
  • Be ready to occupy now or in the near future.
  • Have a ‘turnkey’ package, with white goods and wall to floor finishes.

Properties that aren’t suitable include:

  • Flats, apartments and one-bedroom properties.
  • Properties that have extras, PC sums or personal add-ons to the builder’s spec.

Look for a property that fits this bill and we’ll take a look at it for you.

If you’re interested in a property and are not sure if it may be suitable – ask us.  You can:

Your property has to pass valuation and be otherwise suitable for us to purchase.  It’s important that you feel you could make your home there in the longer term.

Do you have a pool of properties I can pick from?

We don’t have any properties sitting waiting for a tenant.  We aim to purchase the property of your choice and then rent it to you.

What will my rent be?

The Rent to Own commitment is for 3 years, details will be in your rent book.

Your rent payment is the current market rent, set at the start and the amount won’t change for those 3 years.

It’s due at the start of each calendar month and paid by direct debit.  So, for example, if your rent is £500 a calendar month, you’d be making 36 payments of £500 – one for each month over the 3 year period.

How do I buy my Rent to Own property?

Your options to purchase at the end of the 3-year period, are set out in your option to purchase agreement.

To use your option to purchase, you must keep to the terms of your tenancy agreement, including not having rent arrears.

You can buy your Rent to Own property in the second and third year, but your rent rebate will be less, because we calculate it based on the rent you have actually paid.

Depending on your circumstances, you can buy your Rent to Own property through a mortgage or through Co-Ownership.

When you buy the property, the price will be the market value at the time. This will normally be at least the price we paid for it.

If for some reason you find that you can’t get a large enough mortgage to buy your Rent to Own property, you can use your lump sum towards buying another property.

Is Rent to Own a kind of shared ownership?

Rent to Own isn’t shared ownership.  You are renting and legally you are a tenant.

Are there any furnished properties available through Rent to Own?

You must provide your own furniture.

Rent to Own homes will typically have a turnkey package, for example they will have flooring, the walls will be decorated, and the white goods will be included.  You will also get an inventory of what is included in your property at the time you move in.

Will you undertake repairs if needed?

You as Rent to Owner must keep the property clean and properly maintained, in good decorative order.  OwnCo Homes will provide a property repair service, through subcontractors.

Further information is in your tenancy agreement and we will also give you details your Rent to Owners Guide.

Do I need to use a solicitor for my Rent to Own tenancy?

Your Rent to Own tenancy agreement is a binding legal document, and although we do our best to set out the contents clearly,  you may still want to get independent legal and financial advice.  We only want you to sign if you understand it.

We provide example copies of the Rent to Own documents on our website for you to download.

Who are OwnCo Homes?

OwnCoHomes is the landlord and the company that buys the properties for Rent to Own.

We’re a private company and wholly owned subsidiary of Co-Ownership Housing, and we’re funded by interest-free loans from the government.

How do I contact you?

If you still have questions, you can: