Do you want to own your own home but find it hard to save for a deposit while paying rent?
With Rent to Buy, you can:
- Move into your new home and pay less rent (20% less than the market rent) while you save for a deposit.
- Get financial help to work towards owning your home within 5 years.
- Settle into your home and community knowing you could buy it in future.
After 12 months, you may be able to buy part of the home through Shared Ownership.
After 5 years, you may be able to buy it outright.
Who can apply?
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You must live in a working household (at least one adult must have a full-time job).
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It is mainly for first-time buyers but you may also apply if your circumstances have changed (for example, a relationship breakdown) and you can’t afford to buy now.
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You cannot apply if you already own a home in the UK or abroad.
- You will be checked to make sure that you cannot currently afford to buy a home on the open market.
To apply for Rent to Buy, you must enter in a Rent to Buy Agreement. This means you agree to use the 5 years of lower rent to save for a mortgage deposit.
We will check your situation each year during the 5 years.
Eligibility requirements
Everyone over 18 must pass some checks:
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Right to Rent and fraud checks – you must show proof you can legally rent in the UK. We’ll ask for ID (like a passport or driving licence) and proof of address.
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Employment check – we’ll need a reference from your job and details of your household income.
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Credit check – we’ll look at your credit score to see if you’ll be able to get a mortgage. If you’ve had bankruptcy or County Court Judgements (CCJs) in the last 3 years, you won’t be able to apply.
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Landlord reference – if you rent now, we’ll ask your current landlord or letting agent for a reference.
These checks are usually carried out by an Independent Financial Advisor working for North Star. There is no cost to you.
How to apply
If you are interested in Rent to Buy, we can give you details of the homes available, arrange a viewing, and guide you through the application process.
Please note that we cannot reserve a home for you until you have completed the application and we have confirmed you are eligible.
Click below to send the Development team an email or call 01642 796304.
Allocation of properties
On some new housing developments, local people may be given priority. If this applies, we will tell you and may ask for extra information to support your application.
There are no strict rules about the size of home you can apply for. However, if many people apply, we will use our judgement to make sure homes are given fairly. For example, we will look at how many people will live in the property and whether the size is suitable.
The Tenancy Agreement
If you are accepted for Rent to Buy, you must sign a Tenancy Agreement. This is a legal contract between you and North Star.
The agreement will last up to five years and will be checked every year. The first six months are fixed, which means you cannot end your tenancy during this time. If you are applying with someone else, you must both sign the agreement. You will receive a copy before moving in, so you have time to read and understand it.
The Tenancy Agreement sets out what both you and North Star must do. Your responsibilities include paying rent on time, keeping the property in good condition, and asking permission before keeping pets, decorating, or making changes to the property. You must also tell us if your household details change.
If you break the rules of the agreement, it could lead to your tenancy being ended.
The Option Agreement
When you move in, you will also sign an Option Agreement alongside your Tenancy Agreement. This sets out what happens if you decide to buy your home within the five years. You may be able to buy it through Shared Ownership after twelve months, or buy the whole property at the end of the five years.
In some cases, North Star may not be able to sell you the property. For example, if the property’s value is lower than the value written in the Option Agreement, or if you have broken the rules of your Tenancy Agreement.
Rent and service charges
Your rent will be 80% of the normal market rent, and this amount may include service charges. Rent and service charges are checked every year in April, but they will not rise above 80% of the market rent.
Service charges cover things like gardening, lighting in shared areas, and repairs to pavements or roads. If you need to pay a service charge, you will be given a breakdown of what it covers. You must pay the service charge while you rent your home, and also if you later buy your home.
Rent will be collected every month by direct debit.
This illustration shows how Rent to Buy’s rents are calculated but should not be relied upon for affordability purposes or as confirmation of actual Rent to Buy rents (and pcm = per calendar month).
Still got questions? Find the answers below:
Are there other costs with Rent to Buy?
If you decide to buy your home, you will need to pay things like solicitor’s fees, Stamp Duty (if it applies), and any mortgage fees. If you buy through Shared Ownership, you will also pay a small rent, a management fee, and buildings insurance.
What ongoing costs will I have?
Alongside your rent, you must pay for household bills from the day you move in. This includes gas, electric, water, council tax, internet, and TV subscriptions.
Can I keep pets?
You must ask for permission before keeping a pet. Let us know during your application so we can consider your request.
Can I decorate or make changes?
You must ask permission in writing before making changes or decorating. Because new homes need time to settle, we ask you not to put up wallpaper or paint the walls in the first 12 months.
Who looks after the property?
North Star will look after repairs covered by your tenancy agreement. You will be given a handover pack that explains how to report problems. You are responsible for keeping the home in good condition. If you or your visitors cause damage, you will need to pay for the repairs.
What if I can’t buy after 5 years?
If you cannot or choose not to buy, your tenancy may change to a normal rental agreement (Assured Shorthold Tenancy). You may then pay the full market rent instead of the reduced rent.
Who can live in the property?
Only people named in your Rent to Buy application can live in the property. Subletting is not allowed. If your household details change, you must tell us.
Do I need to pay a fee to apply?
There is no fee to apply. But you may have to pay charges if you change who is on the tenancy, end the tenancy early because of a breach, or miss rent or service charge payments.
What if I want to sell my home in the future?
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If you buy outright (freehold), you can sell on the open market.
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If you buy through Shared Ownership, you must contact North Star before selling. We will explain the steps and fees.
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If you own outright but pay a service charge, you must let us know when selling, as the new buyer will need to agree to pay it.
Fraud prevention
North Star must follow strict checks to make sure only people who qualify can use affordable home ownership schemes like Rent to Buy.
We work closely with our letting agents to carry out these checks and to prevent fraud or money laundering. This means you will need to provide proof of identity, proof of address, and sign a declaration that you do not own any other property in the UK or abroad.
If you break the rules of your tenancy, such as subletting or not telling us about a change in your household, your tenancy may be ended straight away.
Find out more about the homes we're building
We build around 100 new, affordable homes each year across the North East, including houses, bungalows and flats. Our homes are modern and energy efficient, with options for rent, shared ownership, and specialist supported housing.
