Intermediate Market Rent
What is Intermediate Market Rent?
Also known as Discounted Market Rent or Sub-Market Rent. This option offers new build homes for rent at a reduced cost by 20% (typically) off private market rents.
How does it work?
Homes are available to rent on an assured shorthold tenancy, usually for a period of 12 months. This is reviewed regularly.
Who is eligible?
Effective from 1st January 2010 all new applicants for Intermediate Market Rent are to be assessed solely by the network of your local HomeBuy Agent using the following eligibility criteria:
- A Household’s total income must be less than £60,000 and applicants must be unable to afford to buy a suitable property on the open market without assistance.
- Applicants must be able to afford 80% of the local market rent without further assistance e.g. Housing Benefit* applicants do not qualify.
- Applicants should make a commitment to enter home ownership through low cost home ownership products in the short to medium term (within five years) and be able to demonstrate how the discounted rent will enable them to save a deposit.
Key worker eligibility criteria may vary according to location and funding rules. If in doubt contact your local HomeBuy Agent.
*If you are in receipt of Housing Benefit, you do not qualify for Intermediate Market Rent. This guidance is to ensure that intermediate market rent is a tenure that gives households time to save for a deposit and move into home-ownership. Households unable to sustain home ownership are therefore not suitable for this tenure.