Why would a rent to buy business in relation to residential property work or not work?

Question

This will be an alternative for home buyers to buying a property straight out and the purchaser having to pay a startup deposit & initial costs, as well as cope with interest rate rises.

Okay, the business will actually buy the property and rent to buy to the livein consumer. The business will incur the startup costs etc whereas the person who wants to rent to buy can simply pay a weekly amount, albeit a small premium on rents but less than buying themselves

Answer 1

Because most sellers want all of their money now so they can move on. The only option would be for the mortgage company to buy the house, then lease it with an option to buy. They are not in the real estate ownership business, so this would not work.

Answer 2

Would you promise to pay someone a fixed amount per month for 15, 20, or 30 years to only own something at the very end? How would you be sure the person would be there after 30 years.
This would combine the worst of renter/landlord and mortgage agreements without the protection of building ownership in the property that a mortgage provides.
Many mortgage companies are willing to fold in the start costs into the mortgage.
Rent to own as a scam is far too common in minority communities where inflated payments, on the grounds of growing ownership, are taken from tenants which are evicted with total loss of money on the least excuse.