In this guide
1. Overview
The Rent to Own-Wales scheme is now closed to participating landlords and no new schemes will be funded.
However, some properties to be offered under the Rent to Own-Wales scheme are still being built and therefore may be available to new applicants who wish to apply for a Rent to Own-Wales home. Please contact a participating landlord in your local area for more information.
Please refer to help to buy a home schemes for information on other home ownership schemes.
Rent to Own - Wales supports the purchase of a home for those who do not have sufficient funds for a mortgage deposit. The scheme enables tenants of rental properties within the scheme, to build up a lump sum toward a deposit whilst they rent their home. The lump sum toward the deposit can then be used to help secure a mortgage to enable the purchase of the home.
How it works
With Rent to Own - Wales:
- you will have the opportunity to purchase the home you are renting and can build up a lump sum towards a mortgage deposit whilst renting the home
- you will initially rent the home and can receive 25% of the rent paid over the duration of the tenancy and 50% of the increase in the property value (if any) during the period of time you have rented the property to use as a deposit towards purchasing the property.
- your Rent to Own - Wales agreement lasts up to 5 years, you can apply to buy your home at anytime between the end of the 2nd year and the end of the agreement.
Financial example 1 : Based on property value of £150,000 and annual market value increase of 2%
| Market value | Monthly rent | Rent paid | Deposit accrued (£) | Deposit accrued (%) | |
|---|---|---|---|---|---|
| Year 1 (start) | £150,000 | - | - | - | - |
| Year 1 (end) | £153,000 | £600 | £7,200 | - | - |
| Year 2 | £156,060 | £600 | £14,400 | £6,630 | 4.2% |
| Year 3 | £159,181 | £610 | £21,720 | £10,021 | 6.3% |
| Year 4 | £162,365 | £610 | £29,040 | £13,442 | 8.3% |
| Year 5 | £165,612 | £620 | £36,480 | £16,926 | 10.2% |
Financial example 2 : Based on property value of £150,000 and annual market value decrease of 2%
| Market value | Monthly rent | Rent paid | Deposit accrued (£) | Deposit accrued (%) | |
|---|---|---|---|---|---|
| Year 1 (start) | £150,000 | - | - | - | - |
| Year 1 (end) | £147,000 | £600 | £7,200 | - | - |
| Year 2 | £144,060 | £600 | £14,400 | £3,600 | 2.5% |
| Year 3 | £141,179 | £610 | £21,720 | £5,430 | 3.8% |
| Year 4 | £138,355 | £610 | £29,040 | £7,260 | 5.2% |
| Year 5 | £135,588 | £620 | £36,480 | £9,120 | 6.7% |