If you are a council house or housing association tenant, you might be able to buy your home for less than its market rate. Here’s some information on the Right to Buy scheme and how to apply for it.
Right to Buy
How much will my discount be?
Right to Buy in Wales will end for all Council and housing association tenants on 26 January 2019.
The maximum right to buy discount is:
- £108,000 in London
- £80,900 for the rest of England
- £8,000 in Wales
- £24,000 in Northern Ireland
- In Scotland the scheme ended on 1 August 2016.
If you sell within five years you will have to pay back your total discount, or some of it, plus a share of any profit.
Can I Apply?
Yes, if:
- You’ve been a council or public sector tenant for three years
- The home you want to buy will be used as your main home
- You don’t share rooms with other people – i.e. the property is self-contained
- Your landlord is the council, a housing association, NHS trust or other public sector landlord
Also:
- You can apply for Right to Buy with someone else who shares the tenancy with you; or with as many as three members of your family if you’ve lived together for at least the past 12 months
- If the council sold your home to another public sector landlord while you were living there, you may still buy it under ‘Preserved Right to Buy’
When don’t you have a Right to Buy?
- If you’re under threat of eviction, are bankrupt or have large debts
- If your home is reserved for the elderly or disabled
- When there’s a shortage of housing
How do I start the process?
Ask your landlord for a Right to Buy form. Once you’ve posted it, your landlord must reply within four weeks.
If the answer is no they must say why, and if the answer is yes they’ll send you an offer.
You can also speak to the Right to Buy Agents’ service which will signpost tenants to no-obligation independent advice and to help them with the application process.
How much will it cost to buy the property?
Your landlord will name their price and explain the discount.
If you don’t think it’s fair you can ask for a valuation from the independent Valuation Office Agency from HM Revenue & Customs.
- The landlord’s offer will include a description of the property and any land, details of any structural problems and an estimate of the service charge (if any) for the first five years
- The landlord must tell you if there are restrictions on who you can sell your home to later. This could make it more difficult to get a mortgage
- You have 12 weeks to decide whether to go ahead
Can I change my mind?
Yes, you can pull out of the sale and carry on renting at any time.
Raising the money
Most buyers need a mortgage to pay for their home.
You can apply for a mortgage from a bank or building society and the lender will check you can afford to meet the repayments.
How much can you afford to borrow?
Before going ahead, make sure you have enough money to cover fees and other costs you’ll need to pay when buying your home.
A guide to mortgage fees and costs
Right to Buy in Northern Ireland
Right to Acquire
Right to Acquire will end in Wales for all Council and housing association tenants on 26 January 2019.
Right to Acquire is a scheme offered in England and Wales for housing association tenants who don’t qualify for Right to Buy.
- You must have been a tenant for three years and be buying your property to use as your main home
- You can’t join the scheme if you’re under threat of eviction, bankrupt or if you have any large debts
- If properties are due to be demolished, or are provided for the elderly, disabled or those in certain jobs, they are not eligible
- Discounts are lower than under Right to Buy and typically range from £9,000 to £16,000
In England
To qualify for the scheme, your landlord must be a housing association or on the register of social housing providers.
Your home must have been built with public funds or taken over from a local council after 1 April 1997.
In Scotland
The Scottish Government plans to end the scheme for all council and housing association tenants in Scotland.
Tenants who currently have a right to buy will have two years to do so.
For more information visit the Scottish Government website.
Scotland – schemes to help you buy a home
In Wales
Your landlord must be a Registered Social Landlord regulated by the Welsh Government.
More information
Help to Buy and other housing schemes
Your next step
Shared ownership schemes explained
This article is provided by the Money Advice Service.
