Property Guide:Looking to Rent

Part Buy Part Rent

There is more than one way to define what part buy part rent means.

There are two possible solutions that this phrase might describe:

Part Buy Part Rent: The strength of these schemes is that the property price is pegged at the value when you start renting it.  It will not continue to rise. Firstly, there are some part rent part buy schemes where you can choose a property of your liking and approach an organisation to buy the property and you lease it from them. Alternatively you might have to choose a property from a portfolio that you'd like to rent with an option to buy. Typically you would take out something like an option to buy the property in the future at a price which is anchored at the outset – meaning the property doesn't get further out of reach financially. You rent the property until you decide if and when you want to buy it.

The Government is also piloting a similar scheme called Rent to HomeBuy.  Under this scheme, first time buyers in England with a household income of £60,000 or less will be able to rent at 80% of the market rate in order to help save for a deposit. After two or three years, they would then have the option to buy 25% or more of the property.

You can find out more about these schemes in our Lease Option section.

Shared Ownership: Secondly, shared ownership is where an individual co-owns a property with another party – usually the local housing association and pays rent to the co-owner for the part of the property that they do not own. The co-owner does not occupy the other part of the property.

You can find out all about shared ownership in our shared ownership section. 

• Contact a mortgage advisor to seek  first time buyer mortgage advice
• See our best first mortgages comparison table
• Find out how to buy a home
• Find out more about buying with a friend