Rent to Own – a taxpayer-funded scheme for those who do not have money for a deposit – has now closed.

The scheme, operated across many parts of Wales, enabled 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.

Under the scheme councils tenants initially rent the home. 

They go on to 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 they have rented, to use as a deposit towards purchasing the property.

The deal lasted up to five years. Tenants could apply to buy their home at anytime between the end of the second year and the end of the five year agreement.

To be eligible for the Rent to Own – Wales scheme, tenants must have had a combined household income of £60,000 or less each year; be in work or self-employed; not eligible for housing benefit;

not currently own a home anywhere in the world; and be unable to afford to buy a property suitable for your family size on the open market.

Applicants must also be able to afford the rent of the selected property; be a British or an EU/EEA citizen, or have indefinite leave to remain; and must choose to rent through one of the many local authorities participating in the scheme.

However a statement this week from the Welsh Government says: “The Rent to Own-Wales scheme is now closed, and all homes have been built and let. 

“A small number of homes may become available in future. Please contact a participating landlord in your local area for more information.”