Right to buy was first introduced in the Housing Act 1980, and whilst it has since been abolished in Wales and Scotland, it is still running in England and Northern Ireland.
The scheme allows council and housing association tenants to buy their rented property at a discounted rate. The scheme was originally created to make homeownership a reality for those on a lower income. Through property ownership, those who thought they had no choices, suddenly found they were able to choose where they wanted to live, with the free movement homeownership, rather than their location being dictated by the availability of council housing.
If you qualify for the right to buy scheme, you can buy your home by yourself, with a spouse, civil partner or other joint tenant, or with up to 3 family members who have lived in your home for the last 12 months.
Not all properties qualify under the right to buy scheme. Such properties include:
• some sheltered or adapted properties
• homes that are due to be demolished within 2 years
• homes that aren't self-contained
• some homes provided as part of your job
As a tenant, you must also fit qualifying criteria:
• you must have been a council or housing association tenant for at least 3 years. This doesn't have to be continuous or in the same property; Time spent in armed forces accommodation also qualifies
• you must be a secure or flexible tenant
• the property you are purchasing under the scheme must be your main and only home
Your right to buy may be lost or suspended if your landlord applies to court to either evict you from your home or demote your tenancy.
A right to acquire works in much the same way as right to buy. The difference is that the housing association may offer the tenant an alternative property to the one in which they currently live. The discount may also be significantly less than with a right to buy property.
As with a right to buy, there are criteria that must be met before you can consider applying.
To qualify for right to acquire, the property must fit the following criteria:
• built or bought by the housing association after 1 April 1997
• paid for through a social housing grant
If your home does not qualify, your housing association could offer you the option of buying a different property.
From a personal perspective, you must be a housing association tenant. However, not all housing association tenants have this right.
This scheme does not apply to housing co-operative tenants.
However, you may already have a right to buy as opposed to a right to acquire, if you are:
• a secure housing association tenant
• A former council tenant whose home was transferred to a housing association with a 'preserved right to buy'
The rules on discounts are different depending on whether you buy your home using the right to buy or the right to acquire.
For the right to buy scheme, your landlord will assess the market value of your home and work out the discount you are entitled to.
The discount you will get will depend on:
• how long you've been a council or housing association tenant
• if the property is a house or a flat
• whether your landlord has spent money building or refurbishing your home in the last 15 years
The maximum discounts available are:
• £112,800 in London
• £84,600 in other areas
The maximum discount increases every April in line with the consumer price index (CPI).
If you sell your home within 5 years of purchasing under either scheme, you will have to repay some or all of the discount.
If you sell within 10 years, you must offer the property back to the council or a housing association before you can sell it on the open market.
If you buy your home using the right to acquire, you'll also have to repay some or all of the discount if your home is repossessed within 5 years of buying it.
If you are considering purchasing a property under a right to buy or right to acquire scheme, we can offer a no obligation conveyancing quote for your legal fees. Our article titled 'What is a conveyancing quote' gives advice on what to look out for when comparing conveyancing quotes.
Our specialist property lawyers have extensive experience in dealing with these types of property transactions and can offer conveyancing advice along your exciting journey.
Call 01206593933 and speak to a specialist conveyancing solicitor. Or complete the form below.
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