Rent to Own – Wales scheme: Explained

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

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 while they rent, which can be put towards a mortgage.

How does it work?

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

They will initially rent the home and receive 25% of what is paid over the duration of the tenancy, with a further 50% of the increase in the property’s value (if any) during the rental period to save for a deposit.

From the end of the second year the tenant will be given the option to buy the home, which will last until the end of the fifth year.

A two-year extension is available (subject to a landlord 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.

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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