Intermediate Rent and Rent to HomeBuy
What is Intermediate Rent?
Intermediate Rent is where you pay reduced rent on a new-build home, enabling
you to save for a deposit and then purchase the property at a later date**.
If you are having trouble obtaining an affordable mortgage without a deposit,
you may be eligible to take part in Intermediate Rent. In the scheme, you pay
‘intermediate rent’ – which is no more than 80 percent of the current market rent
– on a new-build home for up to five years. You use the time that you’re paying
reduced rent to save up for a deposit so you can obtain a mortgage and purchase
your home at a later date.**
How the scheme works
During the intermediate rent period, you may be able to buy your home through the Newbuild HomeBuy shared ownership scheme.
Your HomeBuy Agent helps you to determine the proportion of the property that
you can afford to purchase, which has to be between 25 and 75 percent of the property’s
value. After you have bought a share you continue to pay rent on the share that
you don’t own and as you become able to afford it you can buy further shares
until you own 100 percent of the property.
If you are not able to buy the property** at the end of the intermediate rent
period, your landlord will review your position. Landlords consider each case
on its individual merits but there is no guarantee that your tenancy will be renewed.
Eligibility criteria
You may be eligible for Intermediate Rent if you are a first-time buyer with
a yearly household income of up to £60,000.
How to apply
Intermediate Rent is only available on certain schemes . Please visit the property
search pages to see if there are any homes for intermediate rent listed. You should
apply online and select the 'intermediate rent' option on the application form.
** The option to sell the property is at the discretion of the Landlord or Housing
Association. The Landlord will only be in a position to offer the property for
sale if this is economically viable. You should ask for more information on the
property you are interested in
