Rent to buy or Rent to own is a scheme introduced in 2013 by the government in England. It’s goal was to enable people (mainly first-time buyers) who can’t afford to purchase a property outright to become homeowners. With this scheme, it allows tenants to rent a property at 80% of the current market rates for a fixed period of time. It is usually at least five years which is similar to affordable and intermediate rent.
This scheme differs during the period of renting as It allows the tenants to save up for a deposit to purchase the home when the rental period ends on the contract. Here the rent that has already been paid is attributed towards the deposit at the end. [1] Therefore, affordable and intermediate rent is for tenants interested mainly in temporary housing while Rent to Buy is for permanent housing. It is important to mention that there are some limitations to this scheme, such as losing money if you change your mind to purchase the home after signing a lease-purchase agreement. [2]
So there is a short overview on the history of rent to buy. If you are looking why not see what rent to buy properties are available.
References
[1] https://hoa.org.uk/advice/guides-for-homeowners/i-am-buying/rent-to-buy/
[2] https://www.avail.co/education/articles/the-pros-and-cons-of-a-rent-to-own-agreement
