Rent to Own – Wales scheme: Explained

Take your first step onto the property ladder with Rent to Own – Wales.

The Rent to Own – Wales scheme is now closed to participating landlords and no new schemes will be funded. We’ve kept this review for historical purposes. If you’re currently looking for a mortgage, head to our mortgages section to explore your options.

Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

Designed to help those who have no deposit or a very small one, Rent to Own – Wales, allows people to save for a deposit to purchase the home they are renting.

How does it work?

First off, the applicant can rent a new-build home from a participating landlord at the market rate.

The tenant will initially rent the home and then receive 25% of the rent paid over the duration of their tenancy, plus a further 50% of the increase in the property’s value (if any) during the rental period, to use as a deposit towards purchasing the property.

From the end of the second year the tenant will be given the option to buy the home, and that option lasts until the end of the fifth year.

A two-year extension is available (subject to the landlord’s agreement) if it’s felt that the tenant will be able to buy during that time frame.

If the tenant can’t afford to buy in full after this period but is fed up of renting, they may still have the option to buy the property through shared ownership.

Am I eligible?

For the Rent to Own – Wales scheme, you must:

  • Have a combined household income of £60,000 or less each year.
  • Be in work, including being self-employed.
  • Not eligible for housing benefit.
  • Not currently own a home anywhere in the world.
  • Be unable to afford a property for your family size on the open market or through home ownership initiatives.
  • Be able to afford the market rent of your selected property.
  • Be British or an EU/EEA citizen, or have indefinite leave to remain.
  • Rent an eligible home from a participating landlord.

Is a mortgage required?

As Rent to Own – Wales allows buyers to rent a home they can later purchase, with the monthly rent payments subsidising a future mortgage deposit, applicants will still need to apply for a mortgage when they are ready to purchase the home.

As a quarter of the rent paid and 50% of any increase in value of the home is gifted to the buyer, this should make it much easier for people who would otherwise struggle to save for a mortgage deposit.

What type of property is available and where?

Rent to Own – Wales homes are only available from landlords who are signed up to the scheme.

If you want to find out what’s available in your area, search

Here, you can either choose a new-build home that the landlord currently has available or one that will be in the near future. Remember that the homes will mainly be unfurnished.

Which of the following best describes your living arrangements?

Response% of responses
Social housing such as council house14.58%
Private rental accommodation19.79%
I/We live with my family6.25%
A home that I/we own with a mortgage26.04%
A home that I/we own outright33.33%
Source: Finder survey by Censuswide of people in Wales

Is it worth it?

The scheme is hugely beneficial for those wanting to live in Wales, for those who aren’t able to save for a deposit on their own or anyone with insufficient credit history to be able to obtain a mortgage.

How to apply

We recommend contacting any landlords participating in the scheme to find out about available properties.

Once you’ve identified the property you wish to rent, you will need to pay a holding fee of £250 and complete the Rent to Own – Wales application form.

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