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The Right to Buy scheme
The Right to Buy scheme gives eligible council tenants the right to buy their property from their council at a discount. Tenants of housing associations who hold the preserved right to buy (PRTB) may also be eligible for the scheme.
Are you eligible?
If you have been a secure council tenant for at least two years (or five years if you became a tenant after 18 January 2005) you are likely to have the Right to Buy your council home at a discount.
If your were a secure tenant of a local authority and the ownership of your property was transferred to a housing association you may be eligible for a Preserved Right to Buy (PRTB) for your property. This will only apply if you are still the tenant of the same property before and after the transfer.
You do not have the right to buy if:
You do not have the right to buy if:
- you are an assured tenant of a registered social landlord (RSL) and do not possess a PRTB
- your home is rented in relation to your employment
- the courts have issued a possession order for you to leave your home
- you are undergoing bankruptcy proceedings
- you live in housing specially provided for older people and (in certain cases) disabled people
Discounts available
The amount of discount depends on how long you have been a tenant. For example if you have lived in a house for five years the discount is 35 per cent of the market value of your house. If you have lived in a house for 20 years the discount is 50 per cent.
However, the discount is limited to the maximum amount available for your area. The maximum discount ranges from £16,000 to £38,000 for both flats and houses depending on where you live. To find out about the discount available contact your landlord.
If you sell the property between within five years of buying it, you may have to pay back the discount.
Read the booklet 'Your right to buy your home', available from the link below, before applying for the Right to Buy scheme. It gives more details about the discounts for each area of the country as well as details about the other rules that apply to the scheme.
Buying your home
Buying your home is a major financial commitment which will involve immediate one-off costs such as legal fees and Stamp Duty Land Tax as well as new ongoing costs such as paying the mortgage, repairs and service charges. You can use the article ‘Planning for buying a home’ to help you work out some of the potential costs involved in buying your home.
Some councils offer a cash incentive scheme to tenants who move to smaller or private accommodation. To find out more contact your local council.
How to apply
You can download an application form from the link below or you can obtain an application form from your landlord.
The following link will let you enter details of where you live and then take you to your local authority website where you can look at the discounts that apply in your area, and where to send your application form.
Next steps
Your landlord will make a decision about whether you qualify for the right to buy. If you do you will be sent a letter, called a Section 125 notice outlining:
- the price the landlord thinks you should pay for the property
- the discount you are eligible for
- estimates of service charges and improvement costs you are likely to pay in the next five years
- any structural problems the property may have
- terms and conditions of the sale
If you disagree with the price given for your home you can ask for an independent valuation by the District Valuer. However, the Valuer’s decision is final so if it is found that the value of your house is higher than the original price your landlord is asking for, you must stick to it.
You must make your decision about whether you want to go ahead with buying the property within 12 weeks of receiving the notice. At this stage it is advisable to get independent financial and legal advice as well as getting a survey.
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