Introduction

Under the Right to Buy scheme, you can buy your home at a price lower than
the full market value. This is because the length of time you have spent as a
tenant entitles you to a discount.

The Right to Buy is aimed at secure tenants of local authorities and those assured tenants of Registered Social Landlords who previously held secure tenancies with local authorities – for example, those who became assured tenants after their council homes were transferred to housing associations

The Housing Act 2004 makes further changes to the Right to Buy rules.

On 18 January 2005:

• the initial qualification period was extended from 2 years to 5 years for new tenants

• the discount repayment period was extended from 3 years to 5 years

• the amount of discount to be repaid if a property is resold within 5 years is now a percentage of the market value of the property when it is resold

• the Right to Buy is suspended where an initial demolition notice has been served and ends
where a final demolition notice is served

• tenants who agree to sell their home to a third party during the discount repayment period must repay some or all of their discount as if they had actually sold their home at the time of the agreement

• owners who wish to resell their home within 10 years of it having been sold under the Right to Buy must first offer it at market value to their former landlord or to another body prescribed by the Secretary of State

• landlords can serve a notice after 3 months requiring a tenant to complete their Right to Buy purchase instead of after 12 months

• tenants will no longer be able to choose to exercise the Right to Buy on Rent to Mortgage terms after 17 July 2005;

• landlords must give their tenants information on the costs and responsibilities
of home ownership.

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