Imagine opening your front door—as the owner. For many renters, that first step onto the property ladder no longer requires years of saving a large cash deposit. Thanks to concessionary‑purchase (tenant buy‑out) mortgages, some tenants can buy the very home they already live in using a landlord discount treated as the deposit.

This growing route was highlighted by The Guardian in an article on “no‑deposit” purchases via a gift of equity (a discount off market value that lenders count as your deposit). Read it here: The no‑deposit mortgage that lets tenants buy the home they live in… with a gift from the landlord.

What Is a Concessionary‑Purchase (Tenant Buy‑Out) Mortgage?

In a concessionary purchase, a landlord sells to their tenant at a reduced price (often 10%+ below market value). That reduction becomes a gift of equity—which lenders treat like a deposit—so you may need little or no cash up‑front. You keep your routines, your commute, your community—and start building equity.

“A landlord’s discount can be treated as your deposit, helping tenants buy without saving a large lump sum.”

— Summary inspired by The Guardian coverage

Why This Can Work for Both Sides

• For tenants: No moving costs, no bidding wars, and instant equity from the discount.
• For landlords: Faster, simpler sale; no estate agent fee; minimal void periods; a positive handover to a trusted tenant.

A Snapshot of How It Can Look

A typical pathway: the property is valued at £300,000, the landlord agrees a 10% discount, and you purchase at £270,000. The £30,000 discount is treated as your deposit. You secure a mortgage on £270,000 (subject to lender affordability checks). Result: you’ve crossed from renting to owning—in the home you already know.

Who Might Qualify?

Lenders assess affordability, credit, property type, and tenancy history. Policies vary, but many will consider a well‑documented rent track record, stable income, and a sensible property valuation. The landlord must be willing to document the discount as a genuine gift of equity.

Important Considerations

• Rates & LTV: Higher loan‑to‑value borrowing can carry higher rates than lower‑LTV deals.
• Negative equity risk: With little/no cash deposit, a market fall could put you in negative equity.
• Legal clarity: Your solicitor should confirm the discount is properly documented as a gift of equity.
• Landlord intentions: Not every landlord will agree—approach the conversation respectfully and with facts.

How to Start the Conversation with Your Landlord

1. Prepare: Get a realistic valuation range (or two) and a draft timeline of how a sale could work.
2. Share benefits: Explain the smoother process, fewer viewings, no voids, and potential fee savings.
3. Present lender logic: Outline how a documented discount can function as your deposit.
4. Stay collaborative: You’re proposing a win‑win—not a hard bargain.

Other Deposit‑Light Paths (If a Buy‑Out Isn’t Possible)

• Track‑record mortgages: Some lenders consider strong rent payment history in lieu of a cash deposit (product criteria apply).
• Right to Buy/Acquire: For eligible council/housing association tenants; the RTB discount often acts as the deposit.
• Family‑assisted options: Guarantor, security, or gifted‑deposit routes where appropriate and affordable.

Mindset: Own the Life You’re Already Living

Homeownership can feel distant—especially with headlines about affordability. Yet innovation plus goodwill is opening doors. If you’re a reliable tenant with roots where you live, a tenant buy‑out could be your most practical first step. Start where you are. Use what you have. Take the next right step.

Further Reading

Explore the original coverage in The Guardian: The no‑deposit mortgage that lets tenants buy the home they live in… with a gift from the landlord .

Ready to Explore Your Options?

• Free Clarity Call: Get a personalised roadmap — Book your call.
• Join the Empreso Community: Learn with others on the same journey — Register here.

If you think a tenant buy‑out might work for you, bring us your numbers and your story. We’ll help you assess affordability, prepare your landlord approach, and navigate lender criteria.