The revamped Right to Buy scheme came into effect on 3rd April and provides some tenants with discounts that are three times higher than were previously available. Up to 2.5million tenants could benefit.
The Government has pledged that homes sold under the scheme will be replaced by new properties for rent to ensure that there is no reduction in the number of affordable homes.
Housing Minister Grant Shapps said: “Tenants who have done well for themselves and want to get across the threshold to home ownership can now expect a discount of up to £75,000 to help them buy the home they live in.
Councils must ensure that their tenants are kept properly informed of the new opportunities, and offer a helping hand to those tenants who want to buy their property.”
The Right to Buy scheme works
on the basis that the longer a person has been a tenant, the bigger discount they get.They must have been public sector tenants for five years before they can qualify. This tenancy can be in their current home or in a previous one, with a different landlord.
For a house, tenants can get a discount of 35% on their current home after living in it for five years. For each extra year, they get an additional 1% discount up to a maximum of 60%.
For flats, tenants can get a discount of 50% after five years. For each extra year, they get an additional 2% discount up to a maximum of 70%.
Whatever percentage, the discount cannot exceed £75,000. This arrangement will result in far higher potential discounts for tenants across the country.
Please contact us if you would like more information about buying or selling a home.
