What is discounted rent?

If you're not quite ready to buy a home but would like to start planning for the future, Discounted Rent could be a great option.

Also known as Intermediate Rent and sometimes searched for as Rent to Buy, Discounted Rent offers homes at below-market rental rates, helping eligible households access more affordable housing while saving towards a future home purchase.

We occasionally offer Discounted Rent homes across Kent, Essex, Sussex and South East London. These homes are limited in number and can be highly sought after, so availability isn't always guaranteed.

What is discounted rent?

Discounted Rent allows you to rent a home at a reduced rate, typically around 20% lower than the local market rent.

Unlike Shared Ownership, you won't buy a share of the property or need a mortgage. Instead, you'll rent your home at a discounted rate, giving you more opportunity to save towards a deposit for a future home purchase.

Many people use Discounted Rent as a stepping stone towards buying a home through Shared Ownership or on the open market.

Homes are usually offered on an Assured Shorthold Tenancy (AST) with a minimum tenancy term of six months. An AST is the most common type of rental agreement in England and sets out the rights and responsibilities of both the tenant and landlord.

Who can apply for a discounted rent home?

If you're looking for a more affordable way to rent, you may be eligible for a Discounted Rent home if you meet the scheme requirements.

You'll usually need:
  • Annual income – up to £80,000 outside London, up to £90,000 inside London
  • Be in permanent paid employment (or with at least six months on your contract) and able to cover the monthly rent without assistance (applicants in receipt of benefits will be considered where these are received alongside paid employment)
  • Have the ‘right to rent’ in the UK
  • Be over the age of 18
  • Have a good credit rating (no CCJs/defaults in the last three years unless satisfied more than one year ago or less than £300 in total and satisfied prior to application)
  • Have savings to cover the security deposit (equivalent to one month’s rent) plus additional rent in advance (up to six weeks depending on date of sign up)
  • Homeowners will only be considered if your home will be sold prior to the tenancy starting
As part of the application process, an affordability assessment or budget planner will be completed to ensure the monthly costs are sustainable for your circumstances.

Some developments may also have additional eligibility criteria, such as local connection requirements.

Shared ownership vs Discounted Rent

If you're exploring affordable housing options, you may be wondering whether Discounted Rent or Shared Ownership is right for you.

Discounted Rent
  • Rent a home at a reduced rate
  • No mortgage required
  • Lower upfront costs
  • Save towards a future deposit
  • Ideal if you're not ready to buy yet
Shared Ownership
  • Buy a share of a home
  • Mortgage required
  • Deposit and buying costs needed
  • Build equity in your home
  • Opportunity to staircase and buy more shares in the future
There isn't a right or wrong option. The best choice depends on your circumstances, savings and future plans.

Why choose discounted rent?

Discounted Rent can be a good option if you'd like to buy a home one day but need more time to save for a deposit.

Benefits include:
  • Renting at below-market rates
  • More opportunity to build savings
  • Lower upfront costs than buying a home
  • Access to high-quality homes in desirable locations
  • Flexibility while your circumstances develop
  • A potential route towards future homeownership
For many people, Discounted Rent provides valuable breathing space to save towards a deposit while benefiting from a more affordable monthly rent.

What costs are involved

Before moving into a Discounted Rent home, you'll need savings to cover:

  • A security deposit, typically equivalent to one month's rent
  • Rent in advance, which can be up to six weeks' rent depending on the date your tenancy is signed
Your monthly rent is payable in advance and is due on the first day of each month.

As part of your budgeting, it's important to remember that rent doesn't remain fixed forever. Like most rental homes, your rent will be reviewed annually and is usually subject to an annual review each April.

Having savings available for the security deposit and rent in advance is an important part of the affordability assessment process. 

Common Questions About Discounted Rent

Can I Apply if I Receive Benefits?

Possibly. If you're in paid employment and also receive benefits, you may still be eligible for a Discounted Rent home. We'll look at your overall circumstances as part of the affordability assessment.

Can I Apply if I Already Own a Home?

If you currently own a home, you'll usually need to sell it before moving into a Discounted Rent property.

Is Discounted Rent or Shared Ownership Right for Me?

If you're ready to buy a home and can afford a mortgage, Shared Ownership could be worth exploring. If you'd prefer to rent for now and focus on building your savings, Discounted Rent may be a better fit.

The right option will depend on your circumstances, savings and future plans.

Can I Buy the Home I'm Renting?

In most cases, no. Discounted Rent is designed to help you save towards buying a home in the future, rather than buying the home you're currently renting. Many people go on to buy through Shared Ownership or on the open market once they've built up a deposit.

Is Discounted Rent the Same as Rent to Buy?

The terms are often used interchangeably and both aim to help people save towards homeownership. However, the exact details and eligibility requirements can vary depending on the provider and the development.

What Happens During the Affordability Assessment?

We'll ask for information about your income, outgoings and savings to make sure the rent is affordable for you. This helps ensure the monthly costs are manageable and sustainable before a tenancy is offered.

Looking for a Discounted Rent Home?

Our Discounted Rent homes become available from time to time across Kent, Essex, Sussex and South East London.

Because these homes are limited in number and often in high demand, there may not always be homes available when you're searching. If there isn't currently a Discounted Rent home available that meets your needs, it's worth checking back regularly or exploring our Shared Ownership homes as another route towards homeownership.

See our current availability below.

Our discounted rent homes for sale

View all

Discounted market rent

Caroline Court - Ref DO2511110804DR

Caroline Court, 8-28 Brunswick Street, Maidstone, Kent - Ref DO2511110804DR

£1,044 estimated monthly cost

2 bedrooms

1 bathroom

Shares from TBC

Full market value from TBC

Discounted market rent

Hildesley Close - Ref JT2509110635

East Hill Farm, Sittingbourne, Kent ME10 3GR

£776 estimated monthly cost

1 bedroom

1 bathroom

Shares from TBC

Full market value from TBC

Discounted market rent

Edward Vinson Drive - Ref VM2511110800DR

Edward Vinson Drive, Faversham, Kent - Ref VM2511110800DR

£904 estimated monthly cost

2 bedrooms

1 bathroom

Shares from TBC

Full market value from TBC

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