Can tenants buy from their landlord with a concessionary purchase mortgage?

Can tenants buy their rental property from their landlord with a concessionary purchase mortgage?  More tenants are asking: “Can I buy the home I rent from my landlord?”

Trinity Financial is seeing more enquiries from renters who want to buy the property they currently rent from their landlord.

This is becoming a bigger part of the UK mortgage market. Savills recently reported that 254,000 previously let buy-to-let homes were listed for sale in Great Britain in the 12 months to the end of March 2026. That is equivalent to 697 former rental homes being listed for sale every day. Savills also said the level of buy-to-let stock for sale was 28% higher than in March 2024, with London seeing the most pronounced trend.

For some tenants, this could create an opportunity. Rather than the landlord selling on the open market, the tenant may be able to buy the home directly — sometimes at a discount — using a concessionary purchase mortgage.

What is a concessionary purchase mortgage?

A concessionary purchase mortgage is a mortgage used to buy a property for less than its open market value. In a landlord-to-tenant sale, the landlord agrees to sell the rental property to the tenant at a discounted price. Some mortgage lenders may allow that discount to count as part, or all, of the buyer’s deposit.

For example:

This can help tenants who can afford mortgage repayments but have struggled to save a large deposit while paying rent.

Is there a specific mortgage scheme for renters buying from landlords?

There is no single government scheme for this. The main mortgage route is usually called one of the following:

• Concessionary purchase mortgage
• Landlord-to-tenant concessionary purchase
• Gifted equity mortgage
• Vendor gifted deposit mortgage
• Discounted purchase from landlord

Different lenders use different wording, but the idea is broadly the same: the tenant buys the property below its full market value, and the landlord’s discount may help with the deposit.

Can a tenant use the landlord’s discount as a mortgage deposit?

Yes, some lenders allow this, but the rules vary. Some lenders calculate the mortgage loan-to-value against the open market value of the property. Others base eligibility on the actual purchase price. This matters because it can affect which mortgage products are available and whether the buyer needs to contribute their own cash deposit.

For example, Accord Mortgages says concessionary purchases from family members, landlords and ex-partners are acceptable. It says the maximum LTV is based on the valuation, but the maximum loan amount cannot exceed the discounted purchase price.

Nationwide also publishes concessionary purchase criteria and describes this as a situation where the property is knowingly being bought below market value.

What does “eligibility must be based on the actual purchase price and not the property valuation” mean?

This means the lender will assess the mortgage product and loan-to-value using the price the tenant is actually paying, rather than the higher open market valuation.

Some lenders may say: “The property is worth £300,000 and you are borrowing £270,000, so this is effectively 90% LTV.” Other lenders may say: “You are paying £270,000 and borrowing £270,000, so this is 100% of the purchase price.” That is why tenants should not assume every lender will treat a landlord discount in the same way.

What does the Section 106 wording mean?

Some lender criteria says: “Discounted market sales are acceptable provided that a Section 106 restriction or other restrictions do not apply to the lender who may sell the property at open market value if taken into possession.” In plain English, this means: The lender may accept a discounted purchase, but it does not want to be restricted if it ever has to repossess and sell the property.

A Section 106 agreement is often used for affordable housing or discounted market sale homes. It can restrict who the property can be sold to and may require the home to be sold below full market value in the future.

Which mortgage lenders offer concessionary purchase mortgages for tenants buying from landlords?

Lender criteria changes, and not every lender accepts every landlord-to-tenant purchase. At the time of writing, the following lenders have criteria or products that may be relevant.

Lender	Does it accept concessionary purchases?	How it may help tenants buying from landlords	Key criteria / points to check	Trinity comment
TSB	Yes. TSB is one of the clearest mainstream lenders in this area.	TSB launched its 5&5 Concessionary Mortgage option in January 2025. Under this option, the landlord gives the tenant buyer a 5% discount, and the buyer contributes a minimum 5% deposit. TSB also has a 10% concessionary option where the landlord sells to the tenant with a discount of 10% or more.	TSB will still assess affordability, credit score, income, outgoings, property type and valuation. The tenant should not assume they will qualify simply because the landlord is offering a discount.	TSB appears to be one of the stronger options for tenants buying from landlords because it has a clearly defined concessionary mortgage route. The 5&5 option may suit tenants who have saved some deposit but not enough for a standard purchase.
Nationwide	Yes, subject to criteria.	Nationwide’s intermediary criteria include concessionary purchase or genuine bargain price purchases. These are cases where the property is being bought below market value.	The purchase must not be part of a recognised scheme such as Right to Buy or Shared Ownership. The case remains subject to full lender criteria, affordability and valuation.	Nationwide may be an option for some tenants buying from their landlord, particularly where the landlord is offering a genuine discount.
Halifax	Potentially, subject to criteria.	Halifax has criteria covering discounted purchases by sitting tenants.	The exact requirements should be checked at the time of application because Halifax intermediary criteria is updated regularly.	Halifax may be worth considering, but broker advice is important before relying on it for a landlord-to-tenant purchase.
Accord Mortgages	Yes.	Accord says concessionary purchases from landlords are acceptable.	Accord requires a solicitor’s letter confirming the reduced purchase price, the vendor’s name and the relationship between the buyer and seller. Accord also has a £5,000 deposit mortgage product where concessionary purchases may be acceptable from a family member or existing private landlord, but the £5,000 deposit must come from the client’s own funds or a cash gift from family, not from gifted equity.	Accord may be a useful option where the tenant is buying from their landlord and the case fits its documentation and deposit requirements.
Aldermore	Yes, subject to criteria.	Aldermore has published guidance explaining concessionary purchase mortgages, including landlord-to-tenant situations.	As a specialist lender, Aldermore may be more flexible in some cases, but full affordability, credit and property checks still apply.	Aldermore may be helpful where the case does not fit a high-street lender’s standard rules.
Metro Bank	Yes, but more restricted.	Metro Bank accepts concessionary purchases, but its published criteria is more restrictive for a standard tenant buying from an unrelated landlord.	Metro Bank’s criteria says concessionary purchase is accepted where the seller is a close family member. Non-family members may be accepted if they are named on the mortgage as a joint borrower. Metro also states that LTV and product restrictions may be based on the agreed sale price in certain cases.	Metro Bank may not be the first lender to consider for a straightforward tenant buying from an unrelated landlord, unless the case fits its specific rules.

 

Why would a landlord sell to their tenant at a discount?

A landlord might sell to a tenant at a discount because it can make the sale quicker, simpler and less disruptive.

The landlord may benefit from:

• No estate agent fees
• Fewer viewings
• No need to evict or wait for the tenant to leave
• Less risk of a void period
• Rent continuing until completion
• A motivated buyer who already knows the property
• A potentially smoother legal process
• A cleaner exit from the buy-to-let market

TSB has said landlord discounts may be partly offset by savings such as avoiding estate agency fees and reducing the risk of lost rent while the property is marketed.

What are the benefits for tenants buying from their landlord?

For tenants, the biggest benefit is the chance to buy a home they already know, potentially with a lower deposit.

Key benefits include:

• Buying below market value
• Using the landlord’s discount as gifted equity with some lenders
• Avoiding competition from other buyers
• No need to move home
• No change to commute, school or local area
• Lower moving costs
• More long-term security
• Ability to decorate and improve the property
• Potential equity from day one

For first-time buyers, this can be particularly attractive because saving a deposit while renting is often one of the biggest barriers to home ownership.

 

Is it better to buy your rental property or keep renting?

Buying may make sense if the tenant can afford the mortgage, plans to stay in the area and is receiving a genuine discount from the landlord.

Aaron Strutt, product director at Trinity Financial, says: "Renting may make sense if the tenant needs flexibility, expects to move soon, is unsure about their income, or would be stretched by mortgage payments and maintenance costs. 

The landlord is offering a meaningful discount, the mortgage is affordable, and the tenant has a stable income. Also, the tenant wants long-term security, the property is in good condition, the tenant plans to stay for several years, and the mortgage payments are similar to or lower than rent.

Questions tenants should ask before buying from their landlord

Before agreeing a price, tenants should ask:

1. What is the property’s true open market value?
2. How much discount is the landlord offering?
3. Will a lender treat the discount as a deposit?
4. Do I need to contribute my own cash deposit?
5. Is the property freehold or leasehold?
6. Are there any Section 106 or resale restrictions?
7. Are there repairs I have overlooked as a tenant?
8. Can I afford the mortgage if rates rise?
9. How long do I plan to live here?
10. Is buying this property better than buying something else?

Questions landlords should ask before selling to a tenant

Landlords should ask:

1. What is the property worth on the open market?
2. How much would I save in estate agent fees?
3. Would selling to the tenant avoid a void period?
4. What capital gains tax could be due?
5. Would the tenant qualify for a mortgage?
6. Is the discount worth the certainty of a direct sale?
7. Should I obtain tax advice before agreeing terms?
8. Will the sale complete more quickly than an open-market sale?

Speak to a Trinity Financial adviser today

The mortgage market moves fast — and the right advice can make a significant difference to the rate and deal you secure. Get in touch with our team to discuss your options.

Call Trinity Financial on 020 7016 0790 to secure a fixed or tracker rate mortgage, book a consultation, or use our appointment calendar

The information contained within was correct at the time of publication but is subject to change. It is for general information purposes and is not advice.

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Source: Savills