Rent to Own

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Rent to Own Wales is a Welsh Government funded initiative that is perfect for people who can are looking for financial assistance to buy their own home, as we appreciate the struggle to save for a deposit.

Rent to Own enables you to build up a lump sum towards a deposit, whilst you’re renting your home. After renting for a minimum of two years (and up to five years), you will have the option to buy the property outright and 25% of the rent paid to date, will be available for you to use as a deposit. You will also have 50% of the increase in the value of the property, added to your available deposit, to use towards your purchase.

Find out more about Rent to Own Wales here.

If you do not have enough saved for a Deposit to buy your own home Rent to Own – Wales, a Welsh Government supported scheme, could help you take your first step onto the property ownership ladder. The scheme enables you to rent a property whilst building up a lump sum towards a Deposit to enable you to buy the property.

In summary, the Rent to Own – Wales scheme provides that:

• You can rent a property from a Landlord for five consecutive years, after which you can apply to buy the property.

• If your financial circumstances improve you can apply to buy the property at any time after you have rented the property for two consecutive years.

• If you decide to buy the property, the following amounts are gifted to you to use towards your deposit.

The amount gifted towards your Deposit will be:

  • 25% of the total Rent paid over the duration of the tenancy
  • An amount equivalent to 50% of the increase in the Property Value (if any), during the period of time you have rented the property (‘the gifted deposit’).

Deposit:

  • You can only buy the property if both you and the Landlord are confident that you can comfortably afford it.
  • You will initially be a tenant of the Landlord and normally be offered an Assured Shorthold Tenancy agreement.
  • You will need to pay one month’s Rent in advance and the equivalent of six weeks Rent as a rental deposit.
  • The Rent you have to pay will be reviewed each year in April. Any increases in Rent will be limited to no more than the 12 month CPI average unless the Welsh Ministers require the Landlord to review rent by way of different method.
  • Details of how you can purchase the property will be set out in your Option Agreement, which you will receive before you move in.

You can opt to buy your Rent to Own – Wales property at any time from the start of the third year, until the end of the fifth year of living at the property, after which your option to purchase will lapse, if you have not already exercised it.