In parts of Britain, a sluggish housing market characterized by empty new-build homes and landlords exiting the rental sector has created a challenging environment for prospective buyers. Higher mortgage rates, job security concerns, and financial pressures are deterring many from entering the market. The proportion of new homes sold before completion reached a 12-year low in 2025, according to estate agent Hamptons. Simultaneously, stricter regulations like the Renters' Rights Act are prompting some landlords to sell their properties, adding to the supply of homes available.
Against this backdrop, rent-to-buy schemes are gaining traction as a way for families struggling to save substantial deposits to achieve homeownership. These programs allow individuals to move into a home as tenants for a fixed period, with an agreement to purchase it at the end of that term.
For families like Luke and Hollie Brayne, 24, the scheme offered a solution. Despite saving £25,000, their deposit was insufficient for a 10% down payment on a three-bedroom house in West Sussex. After the birth of their son, they sought their own space and found BeHomed, a company that connects tenants with buy-to-let landlords looking to sell. The Braynes are in a five-year agreement to purchase their current £440,000 home, with plans to secure a mortgage with a 10% deposit. They pay £1,700 per month, with an additional £150 directed into a Lifetime ISA to build their deposit, aiming for a total of £44,000. Under their agreement, they are responsible for maintenance, a task they view positively as it allows them to treat the property as their own. "You get to treat the house as your home," Luke Brayne said. "We have been able to put up pictures of our family and our wedding day on the walls. If you’re renting, you don’t have these options."
Sheila Smith, founder of BeHomed, established the company two years ago after observing the prevalence of rent-to-buy in the US. She actively seeks out properties that have been on the market for an extended period or are vacant, matching them with tenants on her waiting list. Smith noted a significant demand for these schemes, with many more prospective tenants than available properties.
Another firm, HomeNow, employs a different model, purchasing new-build homes directly from developers that are struggling to sell. These homes, typically two to four-bedroom houses, average around £300,000. Jonathan Potter, co-founder of HomeNow, described the scheme as similar to "PCP for houses," where families, often key workers in their early 30s with dual incomes, can rent a property for two years with an agreement to buy. At the end of the lease, tenants receive a "rental refund" equal to 5% of the property's current value to use as a deposit. Cris and Jerlyn Jocson, who relocated from the Philippines, are utilizing this program for a home in Deeside. They pay £1,718 per month for their £275,000 property and plan to purchase it next year. "When you own your home, life is so different," Jerlyn Jocson stated.
Mortgage brokers caution that these schemes require careful consideration. Nicholas Mendes, a broker at John Charcol, advised that while rent-to-buy addresses the deposit-saving challenge, it is a structured agreement with the expectation of eventual purchase. Potential buyers must assess their long-term mortgage eligibility and understand all financial obligations and maintenance responsibilities. He also stressed the importance of exploring traditional mortgage options, shared ownership, or saving for a larger deposit if future mortgage qualification is uncertain.