What You Need to Know Before Buying a Right to Buy Property?

The Right to Buy scheme has helped thousands of council tenants across the UK become homeowners by allowing them to purchase their council homes at a discounted price. But before you jump in, it’s important to understand exactly what’s involved, who qualifies, and what the costs and responsibilities will be.

Here’s a straightforward guide covering all you need to know before deciding to buy under the Right to Buy scheme.

Who Is Eligible for Right to Buy?

Before applying, check if you meet the essential eligibility criteria:

• Tenancy Length: You must have been a tenant in public sector housing for at least three years. These three years don’t have to be continuous, but the longer you’ve been a tenant, the bigger the discount you might receive.
• Main Residence: The property you want to buy must be your only or main home.
• Secure Tenancy: You must hold a secure tenancy with your local council or housing association.

You can also apply jointly with:

• Someone who shares your tenancy.
• Up to three family members who’ve lived with you for the last 12 months, even if their names aren’t on your tenancy agreement.

How Much Discount Can You Get?

The discount available depends on how long you’ve lived in the property and the type of home you’re buying:

Houses: A 35% discount is available if you’ve been a tenant for between three and five years. This increases by 1% for each additional year, capped at 70% or £87,200 in most parts of England (£116,200 in London boroughs), whichever is lower.

Flats: A higher initial discount of 50% applies after three to five years of tenancy, rising by 2% per additional year, again capped at 70% or the regional limits mentioned above.
It’s important to note these amounts can change, so always check the latest rates before applying.

Recent Changes to Right to Buy (2024 Updates)

The UK government recently made some significant changes to the Right to Buy scheme:

• Reduced Discounts: From November 2024, the maximum discount has been lowered significantly, with caps now at £16,000 in London and £34,000 in other regions. If you applied before 21 November 2024, you can still benefit from previous, higher discounts.
• Longer Qualifying Period: The required residency to qualify has increased from three years to ten years for new applicants.
• Repayment of Discount: If you sell your property within ten years of purchase, you’ll have to repay some or all of the discount you received.

These changes aim to reduce speculative buying and ensure the scheme benefits long-term residents genuinely looking to own their homes.

What Costs Should You Expect?

Buying your council home involves more than just the purchase price. You should also consider these additional costs:

• Upfront Costs: Surveys, solicitor fees, and possible stamp duty, depending on the property’s price.
• Maintenance Costs: As a homeowner, you’ll need to pay for all repairs, maintenance, and improvements yourself.
• Service Charges: If you’re buying a flat, you’ll likely need to contribute to service charges for the upkeep of communal areas.
• Mortgage Payments: Ensure you can comfortably afford monthly repayments, especially if interest rates rise.

It’s recommended that you get independent financial and legal advice to fully understand these responsibilities.

How to Apply for Right to Buy

Applying for Right to Buy is straightforward:

1. Fill in the Application Form: Complete the RTB1 form, available from your landlord or the official GOV.UK website.
2. Submit Your Application: Your landlord must respond within four weeks (eight weeks if they haven’t been your landlord for three years).
3. Receiving an Offer: If your application is accepted, you’ll receive an offer detailing the home’s value, your discount, and the price you’ll pay.
4. Decide Whether to Proceed: You have 12 weeks from receiving the offer to accept it.

Is Right to Buy the Right Choice for You?

Buying your council home can offer long-term security and financial benefits. However, it’s a big decision with lasting implications. Make sure you’re aware of all costs and responsibilities, and seek professional advice if needed.

By being well-informed, you’ll be ready to make the decision that’s best for your future.

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