Introduced in the 1980s, the Right to Buy scheme is a UK government initiative which allows eligible tenants to purchase their council home at a discounted rate.
Government statistics show that from April 1980 to March 2022, over 2 million social housing properties were sold through Right to Buy schemes.
What are the Rules?
To qualify for the Right to Buy scheme, tenants must have been living in a council house for at least three years. This property must be the tenant’s primary residence. There are different rules for Wales, Scotland and Northern Ireland, so it is important to check eligibility before applying.
Discounts Available
Currently, the maximum discount in England is £96,000, except in London boroughs where it is £127,900. The discount is based on factors such as the length of the tenancy, the type of property and its current market value. The longer a tenant has been in the property, the higher the potential discount.
How to Apply
Tenants interested in applying need to complete a Right to Buy application form (RTB1 notice). The application process involves providing information about the property, the tenancy and the financial arrangements for the purchase. This needs to be sent to the landlord who must make a decision within 4 weeks of receiving the application. If your landlord agrees to sell, they will make you an offer.
If a tenant decides to accept the offer, they will need to have a survey done on the property. A home buyers report cost varies, so it is important to shop around. More information can be found here: https://www.samconveyancing.co.uk/news/house-survey/homebuyers-survey-cost-9958.
Landlord’s Offer
If you are made an offer, this will include the price the landlord thinks you should pay for the property, and how the discount has been calculated.