What Is the Right to Buy Scheme?

Right to Buy is a government scheme that gives social tenants in England and Wales the opportunity to purchase their council houses at a reduced price. The discount available through the scheme is based on the length of time for which you have been a tenant, the type of property you are living in and the location of the property.

Joint applications can be made with either someone who shares your tenancy or up to three family members who have resided with you for at least the past year.

Are Right to Buy Transactions Available to All Council House Tenants?

In England, the Right to Buy initiative is only available to secure tenants of a council or housing association property. You must have lived in the property as your only or main home for a minimum of three years, although this does not need to be consecutive, and have been a council tenant for at least five years in total, but not necessarily in the same property.

It may not be an option for you if:

• The property is not your main home
• You have been told by the courts to leave the property
• You are being declared bankrupt or you are an undischarged bankrupt
• The property is not self-contained
• You owe money to creditors

If your home used to be owned by the council and was sold to a housing association or other landlord while you were still living in it, you may still have the option to purchase your home through a mechanism named Preserved Right to Buy.

Seek advice from our legal experts if you are unsure whether or not the scheme applies to you.

What Right to Buy Discount Am I Entitled To?

The discount you may be entitled to under the Right to Buy Scheme depends on a variety of factors, including the property value, your location, whether you are a tenant of a house or flat and the length of your tenancy.

In England, public sector tenants who have lived in a house for three to five years will receive an initial 35% discount. For each year afterwards, an additional 1% discount is applied. Those who live in a flat will receive a 50% discount after three to five years of tenancy, with an additional 2% for every additional year.

In either case, the discount increases up to a statutory maximum that differs from region to region. The maximum discount can be as much as 70% of the value of the property if this is lower than the regional maximum. More information can be found on the government's Right to Buy page, and the team at JMW can advise you of the discounted price you can expect based on your situation.

What Is the Right to Buy Process?

To apply to buy your council home, you must confirm that you are eligible. Speak to the team at JMW if you are unsure about whether you meet the eligibility criteria, and to discuss the financial and legal implications of your decision.

To start the application process, fill in the Right to Buy application form (RTB1 notice) and send it to your landlord. The landlord must respond within a specified period of four weeks for a freehold property purchase, or eight weeks for a leasehold purchase.

Once your application is accepted, your landlord will send you a Section 125 notice (or 'Offer Notice'). This explains the price they believe you should pay for the property and the discount you are entitled to. It also includes a description of the property, an estimate of service charges (for flats and maisonettes) for the next five years, and any structural issues they know about.

You have 12 weeks to accept the offer. If you agree, the sale will proceed. However, if you are not satisfied with the terms, you have the right to appeal the valuation or dispute the service charges. This means requesting an independent valuation from the District Valuer. This must be done within three months of receiving your 'Offer Notice', and the District Valuer's decision is final. It is worthwhile discussing this option with a Right to Buy lawyer to determine whether it is the right approach in your circumstances.

Do I Need a Conveyancing Solicitor for a Right to Buy Purchase?

While you are not legally required to have a solicitor for the Right to Buy process, it is highly recommended. JMW's Right to Buy conveyancing solicitors will support you through all of the legal procedures involved to make the process as smooth as possible.

Our role includes verifying property deeds, conducting local authority searches, reviewing the terms of the sale, checking for any legal issues tied to the property and verifying that the transaction complies with all relevant laws and regulations. An oversight in any of these areas could lead to significant complications or additional costs.

With our expertise and experience in the Right to Buy scheme, JMW can provide you with comprehensive support throughout this process. Our team of conveyancing solicitors will ensure that your application, valuation and final purchase are carried out accurately and efficiently. We are well-versed in Right to Buy matters and ready to answer questions about the Right to Buy conveyancing process or assist in any disputes or challenges that may arise.