1. Overview

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%

 

Not sure if this is for you?

Use our scheme finder to find out which other home ownership schemes you may be eligible for.