We are delighted to offer Rent to Buy with Peabody New Homes, at selected developments as a brand new way to make it possible for you to own a home.
What is Rent to Buy?
We are delighted to offer Rent to Buy with Peabody New Homes, at selected developments as a brand new way to make it possible for you to own a home.
Once you find your home, Rent to Buy allows you to rent your home at a 20% percent discount in any of our selected areas then own it via Shared Ownership after two years. After the 2 year period you can choose to own your home through Shared Ownership.
We understand how difficult it can be to get a foot on the property ladder. Too often people are forced into completely changing their lifestyle or making big sacrifices, like moving away from family, friends and work, just to be able to save for a deposit to buy their own home.
Rent to Buy is designed for people who are earning enough to qualify for buying a home through Shared Ownership,
but have not yet been able to save enough for a deposit.
You can rent a Peabody home while saving for a deposit during the 2 years you're renting with us. See how much savings you can make to contribute to your deposit.
Example: 1 bed apartment at Colindale Gardens
Minimum annual household income - £45,000
Cost of your home - £380,000
Reservation fee - £99
Five weeks' deposit - £1,270
Market value rent (monthly) - £1,400
Monthly rent you will actually pay (-20%) - £1,100
A 20% discount on your rent means you can build up savings of £7,200 in just two years.
Rent to Buy allows you to rent your home at a 20% percent discount,
then own it via Shared Ownership after two years.
Here is what you need to be eligible for the rent to buy scheme:
- My household income is not more than £90,000 a year
- I don’t own a property already
- I am willing to agree with you a sustainable amount I am able to save every month whilst I am renting my new home
- I can afford the monthly Shared Ownership costs at the moment, but don’t currently have a large enough deposit to buy through Shared Ownership or outright
- I am able to show that I can obtain a mortgage based on my current credit report
- I am able to pass money laundering and fraud checks
- I am hoping to buy a home big enough to suit my current needs
- I am able to get a good tenancy reference from my current landlord
Speak to a Sales advisor on enquiries@peabodysales.org.uk for more information regarding eligibility and affordability criteria.
What if my circumstances change after 2 years?
We appreciate that a lot can happen in two years. If for any reason your home from our rent to buy properties is no longer suitable, you do have some more options:
- You can consider buying an alternative brand new Peabody home through Shared Ownership with a 5% cashback incentive.
- You can consider buying an alternative Peabody resale property without a cashback incentive.
- You can choose to move out of the home.
Once the initial rental period is over, you should be in a position to buy your home through Shared Ownership,
using a combination of the deposit you have saved and a mortgage arranged by yourself.
Owning a Shared Ownership home, means you buy a share in the property and pay rent on the share you don’t own. You can buy as little as 25% or as much as 75% of the value of the property initially, and you’ll need to take out a mortgage to do this. Although you may be officially ‘renting’ a proportion of the home, legally you become an owner-occupier, not a part tenant.
Shared Ownership is a part buy/part rent scheme that makes it possible for first time buyers to purchase a property that otherwise would not have been affordable. It is a government-backed scheme launched in 2006 for people who are unable to afford to buy a home at full market value.
Find your dream place with Peabody New Homes
All our Rent to Buy homes are now reserved. In the meantime, use our property search to discover other ways to buy a home including through Shared Ownership.
Find a Home
Find your place to call home with Peabody. We have a wide selection of homes throughout London and the South East available through Private Sale and with buying assistance including Shared Ownership and Help to Buy.
Shared Ownership
Shared Ownership is a part buy/part rent scheme that makes it possible for first time buyers to purchase a property that otherwise would not have been affordable. It is a government-backed scheme launched in 2006 for people who are unable to afford to buy a home at full market value.
Homeowner Stories
Read a collection of homeowner stories from Peabody New Homes and discover how we were able to support them onto the property ladder through the Shared Ownership buying scheme.