Rent to buy frequently asked questions

If the following applies to you, then it is likely you will be eligible for Rent to Buy:
•    Must be 18 years or over
•    Must be a first-time buyer or returning to the home purchase market 
•    Must be working at the time of letting (at least one tenant where a joint tenancy)
•    Have a gross income of less than £80,00 per annum
•    Have insufficient funds for a deposit (less than £17,5000)
•    Must be able to afford a Rent to Buy property without hardship or access to housing benefit/ housing element of universal credit
•    Applicants must have the Right to Rent and/or indefinite Leave to Remain if subject to any immigration criteria
•    Not be guilty of any unacceptable behaviour that would be mean they do not qualify for Social Housing (i.e. unspent convictions, poor tenancy references, or Anti-Social Behaviour)

The monthly rent is calculated as 80% of the full market rent for the property for a minimum of 5 years. As you will be paying 20% less of what it would cost to rent a similar property, there is an expectation that you save this towards your deposit to purchase the property after 5 years.
Your rent will include service charges if applicable. The rent will increase each year in line with the Consumer Price Index (i.e. the cost of living) plus 1%. 

Before your tenancy starts, you will need to pay a security deposit equal to one month’s rent, this will be held in an approved Tenancy Deposit Scheme until the end of your tenancy.

You will have a flexible (fixed term) tenancy agreement and after 5 years, you can buy your home, or we may extend your tenancy agreement further. While you are a tenant, you can end your tenancy at any time by giving us notice in line with  your tenancy agreement. 

No you do not need to register on Darlington HomeSearch to apply for a Rent To Buy property. 

Rent to Buy is a separate process and you can only apply for these properties if you meet the eligibility criteria.  To check if you meet the eligibility criteria please complete this form. [internal link]

All applicants will need to complete an income and expenditure form; we will check that you can afford the property without financial hardship or reliance on Housing Benefit or the housing element of Universal Credit.

While you are renting your home, we will carry out any necessary repairs to ensure your home is safe to live in. We have set response times for emergency and standard repairs. When you sign up for your tenancy, you will get more information. 
In line with your tenancy agreement, you are expected to look after your home. Any damage caused by your household or visitors will be recharged to you. Once you buy your home, you will be fully responsible for all repairs and maintenance.

You will need to ask permission before making any improvements to your home. Any improvements we give permission for will be at your own cost.

No, you cannot sub-let your home and the property must be used as your ‘main or principal home.’ 

You can keep household pets, but you are required to ask permission first in line with our Pet Policy.

You can end your tenancy at any time by giving us notice in line with your tenancy agreement. You will be responsible for rent payments until your tenancy ends. The property should be left in the condition it was in when you first rented it.

Before you start your tenancy, we will talk through your financial circumstances and outline  how much you will need to save. We will contact you for regular reviews throughout your tenancy to discuss how saving for your deposit is going. 
We might ask to see evidence of these savings, for example by looking at your bank statements. You can also seek your own independent financial advice for a detailed assessment of your finances and help you find a suitable mortgage. You should check what their fees are before you begin.

The Rent to Buy scheme is there to help people into home ownership. If you’re unable to build up savings for a deposit, we will discuss this with you at your regular reviews. If it’s unlikely that you’ll be in a position to buy your home at the end of your tenancy period, then we may need to reconsider if Rent to Buy is the right option for you. In some circumstances, we may end the tenancy in accordance with the terms of the tenancy agreement.

A Rent to Buy home cannot be sold outright until the property is five years old. At this point, the purchase price will be based on an independent market valuation, carried out at the time you wish to buy, not when the property was first built. We will arrange and pay for the property valuation.

As you are already renting and living in the home you wish to buy, you would have no estate agency fees or moving costs to pay. The only costs you’ll have are legal fees, survey costs and any fees charged by an independent financial advisor if you choose to use one.

Rent to Buy is for people who don’t have enough money for a deposit right now. It gives you a minimum period of five years to become ‘mortgage ready,’ so that you can buy your home. You won’t be able to purchase your Rent to Buy property before 5 years.

If, after five years, you still want to buy your home but don’t have the full deposit, we might agree to extend your tenancy period. This will give you more time to save up. 
If you choose not to buy your home, we might bring your tenancy to an end. We’ll stay in touch with you throughout your tenancy and discuss your options with you. 

You might not be able to buy your home if:

• The property value at the time you wish to buy is below what it cost us to build/provide it.
• You are in rent arrears or in breach of the tenancy agreement