Yes, you can buy your house from your landlord, and it can be one of the easiest ways onto the property ladder. Many UK lenders accept a sale from a landlord to a sitting tenant, known as a concessionary purchase. If your landlord sells to you below market value, the discount may be able to count as your deposit, so you could buy with little or no savings of your own, subject to lender criteria.
Key takeaway: If your landlord agrees to sell to you at a discount, that discount (called gifted equity) can act as some or all of your deposit with many lenders. Some lenders need nothing more from you once the discount reaches 5%, and Skipton Building Society's Track Record mortgage can lend up to 100% of the price for eligible renters even without a discount. The lender you choose makes a real difference.
Can I buy my house from my landlord?
If your landlord is willing to sell, then yes. There is no law stopping a private landlord selling to a tenant, and lenders see these purchases regularly. The process is much like any other house purchase: you agree a price, arrange a mortgage, and solicitors on both sides handle the legal work.
What makes it different is the relationship. Because you and the seller already know each other, lenders treat the sale as a concessionary purchase, sometimes called a sitting tenant purchase. That label matters, because it opens up a way of buying that a normal open-market sale does not offer: using the landlord's discount as your deposit.
It is worth raising the idea with your landlord, even if they have not mentioned selling. With tax and regulation changes for private landlords in recent years, including the Renters' Rights Act, some landlords are reviewing whether to keep their properties, and a sale to a tenant they already know can suit both sides.
How does buying from your landlord work with a discount?
Some landlords agree to sell to a tenant below market value, and it is not just generosity. Selling to you can save them estate agent fees, the cost of the property sitting empty between tenants, redecorating and marketing, and the uncertainty of an open-market sale. A discount shares some of that saving with you.
The discount is known as gifted equity. Lenders that accept concessionary purchases work out your loan to value (LTV) against the property's market value, as confirmed by their own valuation, rather than against the lower price you are paying. The gap between the two acts as your deposit.
Example: Your rented flat is valued at £250,000 and your landlord agrees to sell it to you for £237,500, a 5% discount. You borrow £237,500, which is 95% of the property's value. The £12,500 discount works as a 5% deposit, even though you have not paid it in cash. If you can add savings on top, the LTV falls further, which may give you access to a wider choice of mortgage deals.
The discount has to be genuine. Lenders will usually want written confirmation from your landlord that it is a gift, with no expectation of being paid back and no agreement to share in any future sale. Your solicitor will normally handle this as part of the purchase.
Can I buy my rented house with no deposit?
You may be able to, in one of two ways.
1. A discount large enough to cover the deposit. Some lenders will accept a landlord's discount of 5% or more as your entire deposit, meaning no savings are needed for the deposit itself. You would still need money for costs such as legal fees and a survey.
2. Skipton's Track Record mortgage, with or without a discount. Skipton Building Society's Track Record mortgage can lend up to 100% of the purchase price to eligible renters, using your history of paying rent rather than a deposit to show you can manage a mortgage. It can be used to buy from your landlord, and it does not depend on a discount at all, so it can work even if your landlord wants full market value. You need 12 months of rent and household bill payments made on time within the last 18 months, you must not have owned a property in the last three years, and it is only available on a five year fixed rate. Read more in our guide to low deposit and no deposit mortgages.
Skipton will also lend on a concessionary purchase outside the Track Record mortgage, with a minimum 5% deposit that can be funded by your landlord's discount rather than your own savings.
Which lenders accept a purchase from your landlord?
Lenders vary widely on how big the discount needs to be, whether you must add your own money, and how long you must have rented. Here is how some of them approach it.
| Lender | Deposit needed | Key criteria |
|---|---|---|
| Skipton Building Society (Track Record) | None. Up to 100% of the purchase price, and no discount is required | 12 months of rent and bills paid on time within the last 18 months, no property owned in the last 3 years, 5 year fixed rate only |
| Skipton Building Society (concessionary purchase) | Minimum 5%, which can be funded by the landlord's discount | Standard Skipton affordability and credit criteria apply |
| TSB | None with a discount of 10% or more. With a discount of 5% to under 10%, a minimum 5% deposit from you as well | Tenancy agreement of at least 1 year, discount of at least 5%, not available on new builds, must be your main home |
| Aldermore | Up to 100% of the purchase price where the gifted equity is at least 2% | Discounts accepted up to 25% from a landlord, minimum discount of 2% for employed applicants and 5% for self-employed applicants |
Lender criteria change regularly and every lender also applies its own affordability, credit and property checks, so treat this as a guide rather than a guarantee. Criteria correct as at November 2026.
Good to know: The discount is measured against the lender's valuation, not your landlord's asking figure or an estate agent's estimate. If the lender values the property lower than expected, the discount shrinks, and so does the deposit it provides. Flats and unusual properties are more likely to see surprises, so it pays to agree a price based on realistic local sold prices.
Thinking of buying from your landlord?
Book a free, no-obligation consultation to find out which lenders may accept your purchase, and how much deposit you would really need.
Which situation are you in?
The right lender depends on what your landlord is offering and on your own circumstances. Tap whichever applies to you.
1My landlord is offering a discount of 5% or more▾
Some lenders may accept the discount as your full deposit, so you may only need to cover costs such as legal fees and a survey. Adding savings of your own could lower your loan to value and widen your choice of rates.
2My landlord is offering a small discount, under 5%▾
You still have options, but fewer lenders will accept a discount this small, and more will want some money from you as well. Some lenders accept a discount from as little as 2%, depending on your circumstances. Lender choice matters most here.
3My landlord wants full market value▾
Without a discount, this is treated more like a normal purchase, so you will usually need a deposit of at least 5%. If you have a good record of paying rent and have not owned a home in the last three years, Skipton's Track Record mortgage may let you borrow up to 100% instead.
4I have had credit problems in the past▾
Your credit history is assessed separately from the concessionary purchase. Settled defaults, CCJs or a past IVA do not rule you out, though they may narrow the lenders available. The key is finding a lender that accepts both your history and a sale from your landlord.
5I'm self-employed▾
Concessionary purchases are open to self-employed buyers too, though some lenders set a higher minimum discount. Lenders will usually assess your income from your tax calculations or accounts, in the same way as any other self-employed mortgage.
If any of these apply, our guides to adverse credit mortgages and getting a mortgage when you are self-employed go into more detail.
How do I buy my house from my landlord, step by step?
The process follows a normal purchase, with a few extra points to get right because you already live there.
Tip: One of the most overlooked benefits of buying the home you rent is that there is no move and no overlap. Most renters who buy elsewhere end up paying rent and a mortgage at the same time for a month or two around completion. Buying from your landlord avoids that, along with removal costs.
What costs should I budget for?
Even with no deposit, buying from your landlord is not free. Budget for legal fees, a survey, any mortgage arrangement fees, and possibly stamp duty.
Stamp duty is generally worked out on the price you actually pay rather than the market value, so a discount can reduce your bill as well as your deposit. First-time buyers may also qualify for first-time buyer relief. Your solicitor will confirm the figure, and you can estimate it with our stamp duty calculator or see the wider picture with our cost of moving calculator.
What are the risks of buying from your landlord?
It is usually a positive move, but go in with your eyes open.
- Paying too much. It is easy to be attached to a home you live in. Base the price on comparable sold prices, not on the landlord's view of its value.
- A low valuation. If the lender values the property below the agreed figure, the discount and the deposit it provides can shrink or disappear.
- The landlord changing their mind. Until contracts are exchanged, either side can pull out, which can strain the relationship if you are staying on as a tenant.
- Repairs become yours. Maintenance, insurance and, for flats, service charges and lease terms all become your responsibility once you own it.
Our guide on what to do if your property is down-valued explains the options if the valuation comes in low.
Is buying from your landlord a good first step onto the ladder?
For many renters, it can be. You know the property, the area and its quirks, there is no chain to wait for, and a discount could replace years of saving for a deposit. If you are buying your first home, our first-time buyer guide and first-time buyer mortgage page cover the wider process.
The detail that makes the biggest difference is choosing a lender whose rules fit your discount, your deposit and your circumstances. Quanstrom Financial is a whole-of-market mortgage broker based in Eastbourne, helping tenants across East Sussex and the rest of the UK by phone and video. If your landlord has offered to sell, or you are thinking of asking, book a free consultation through our contact page.
Frequently asked questions
Can I buy my house from my landlord?
Yes, if your landlord is willing to sell. Buying the home you rent is known as a sitting tenant or concessionary purchase, and many UK lenders accept it. If your landlord sells to you below market value, the discount may be able to count towards your deposit, subject to the lender's criteria and its own valuation of the property.
Can I buy my rented home with no deposit?
You may be able to. Some lenders accept a landlord's discount of 5% or more as your whole deposit, so you put in nothing yourself. Skipton Building Society's Track Record mortgage can also lend up to 100% of the price for eligible renters, even where there is no discount at all. Criteria apply in both cases.
What is a concessionary purchase mortgage?
A concessionary purchase is when you buy a property for less than its market value from someone you have an existing relationship with, usually your landlord, a family member or, less often, an employer. A concessionary purchase mortgage is simply a mortgage from a lender that accepts this type of sale and lets the discount, known as gifted equity, act as some or all of your deposit.
What is gifted equity?
Gifted equity is the difference between a property's market value and the lower price the seller agrees to sell it to you for. If a home is worth £250,000 and your landlord sells it to you for £225,000, the £25,000 discount is gifted equity. Lenders that accept concessionary purchases treat it in a similar way to a cash deposit, as long as the discount is genuine and does not have to be paid back.
How much discount should my landlord give me?
There is no fixed rule, as it is a price you agree between you. Lenders do set minimums for the discount to count, though, and these vary. Some lenders accept a discount of 5% or more as your whole deposit, and a few accept smaller discounts. A mortgage broker at Quanstrom Financial can tell you what the lenders who suit you will accept before you agree a figure.
Does the discount from my landlord count as a deposit?
With many lenders, yes. The lender values the property, and the difference between that valuation and your purchase price is treated as your deposit. Some lenders accept the discount as your whole deposit, while others still want a minimum amount from your own savings as well, so which lender you use matters.
Do I pay stamp duty on the discounted price or the market value?
For a standard purchase between individuals, stamp duty is generally worked out on the price you actually pay rather than the full market value. If you are a first-time buyer, first-time buyer relief may also apply. Your solicitor will confirm the exact amount for your purchase, and our stamp duty calculator can give you an estimate.
How long do I need to have rented the property?
It depends on the lender. TSB, for example, asks for a tenancy agreement of at least one year. Other lenders set their own rules, and Skipton's Track Record mortgage looks at 12 months of rent and household bill payments within the last 18 months. Lender criteria change, so check the position before you apply.
Do I need a survey if I already live in the property?
Your lender will carry out its own valuation, but that is not a survey of the property's condition. Even if you have lived there for years, an independent survey can flag issues you may not see day to day, such as damp, roof wear or problems that would be costly to fix, and the findings can help you agree a fair price.
Can I buy my house from my landlord with bad credit?
Possibly. Your credit history is assessed separately from the concessionary purchase itself, so the same rules apply as for any other mortgage. Some lenders accept settled defaults, CCJs or a past IVA, depending on how long ago they happened. A mortgage broker at Quanstrom Financial can look at lenders who accept both your credit history and a purchase from your landlord.
Written by Toby Quanstrom CeMAP, Director at Quanstrom Financial, a whole of market mortgage broker based in Eastbourne, East Sussex.
This article is general information only and does not constitute personal advice. Lender criteria change regularly and what is available to you depends on your own circumstances, so please speak to a qualified adviser before making a decision.
Your home may be repossessed if you do not keep up repayments on your mortgage.
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