{"id":1686,"date":"2023-12-22T11:26:21","date_gmt":"2023-12-22T11:26:21","guid":{"rendered":"https:\/\/lendingline.co.uk\/?p=1686"},"modified":"2024-04-30T12:37:37","modified_gmt":"2024-04-30T11:37:37","slug":"buying-a-council-house-new-rules","status":"publish","type":"post","link":"https:\/\/lendingline.co.uk\/buying-a-council-house-new-rules\/","title":{"rendered":"Buying A Council House (New Rules)"},"content":{"rendered":"\n

In the UK, council houses provide shelter to over 200,000 homeless people<\/a>. These properties are provided on rent to tenants.<\/strong><\/p>\n\n\n\n

Notably, over the past four decades, an increasing number of tenants have successfully purchased their rented properties through the Right to Buy scheme<\/a>.<\/p>\n\n\n\n

This is largely due to the significant discounts offered, making homeownership more accessible. <\/p>\n\n\n\n

However, for someone who is interested in buying a council home, new rules<\/strong> being introduced could affect eligibility, discount rates, and more.<\/p>\n\n\n\n

That\u2019s why in this guide, we will be discussing all about new rules related to buying a council house<\/strong>, as these schemes are updated regularly, especially around the discounted property prices.<\/p>\n\n\n\n

Note:<\/strong> Right To Buy scheme has been discontinued in Wales, Scotland<\/a>, and has had changes in Northern Ireland<\/a>, it remains active in England, consistently maintaining popularity.<\/p>\n\n\n\n

Eligibility Criteria to Buy A Council House<\/strong><\/h2>\n\n\n\n

The Right to Buy scheme permits council tenants in the UK to purchase their council home at a discounted rate. <\/p>\n\n\n\n

Eligibility criteria include the property being the applicant’s primary, self-contained residence, and having a public sector landlord for at least three years (not necessarily consecutively). <\/strong><\/p>\n\n\n\n

Joint applications are also possible with individuals sharing the tenancy or up to 3 family members who have lived with the applicant for the past 12 months. <\/p>\n\n\n\n

Plus, former council homes sold to another landlord may still qualify under the \u201cPreserved Right to Buy<\/a>\u201d scheme. However, you must enquire with your landlord for accurate information and this will be more complex.  <\/p>\n\n\n\n

As mentioned earlier, the Right to Buy scheme no longer exists in Wales, Scotland<\/a>, and Northern Ireland, so you must check the rules for those countries separately.<\/p>\n\n\n\n

Note:<\/strong> If you\u2019re residing in housing association properties, you may have the option of Right to Acquire, a distinct scheme with different eligibility requirements. You can read more about right to acquire scheme here. (link to the article when published<\/em>)<\/p>\n\n\n\n

Discounts Available for Buying A Council House<\/strong><\/h2>\n\n\n\n

The Right to Buy scheme offers significant discounts on the market value of homes for eligible buyers. <\/p>\n\n\n\n

The maximum discount is \u00a396,000 across England and \u00a3127,900 in London, increasing annually with the consumer price index <\/a>(CPI). <\/p>\n\n\n\n

Factors influencing the amount of discount include the duration of public sector tenancy, property type (house or flat), and home value. <\/p>\n\n\n\n

As such, joint buyers can count the tenancy period of the applicant who has lived in the council house the longest.<\/p>\n\n\n\n

Note that past Right to Buy usage can increase the discount you are eligible for.<\/p>\n\n\n\n

That said, the discount for houses ranges between 35-70% and 50-70% for flats. Discounts may be reduced if the landlord has invested in home construction or maintenance within the last 10-15 years. <\/p>\n\n\n\n

You may not get any discount if the landlord has already spent more money than the total worth of the council house.<\/p>\n\n\n\n

How to Apply To Buy A Council House?<\/strong><\/h2>\n\n\n\n

Step 1: <\/strong>Fill out the Right to Buy (RTB1) application<\/a> form and send it to your landlord.<\/p>\n\n\n\n

Step 2: <\/strong>Allow up to eight weeks (four weeks for tenants of over three years) for the landlord’s response.<\/p>\n\n\n\n

Step 3: <\/strong>Consult your landlord for reasons if they decline your application. If they agree to sell, you must wait for an offer within eight weeks for freehold or twelve weeks for leasehold properties.<\/p>\n\n\n\n

Step 4:<\/strong> Check the landlord\u2019s offer details. It should include the following details-<\/p>\n\n\n\n