Housing

Social HomeBuy

This scheme provides new opportunities for tenants who do not have the Right to Buy or Right to Acquire, and those who do, but cannot afford outright purchase under the statutory schemes, to buy a share in their rented home, at a discount.

  • tenants of participating landlords will be able to purchase a minimum initial share of 25 per cent of a home. The remainder of the equity will be retained by their landlord who will be able to levy a charge of up to 3 per cent of the capital value of their retained equity. A lower target average for the charge will be set at 2.75 per cent
  • buyers receive a discount on the initial share purchase. This will be the Right to Acquire discount (generally between £9,000 and £16,000 - depending upon the local authority area in which the property is located), pro-rata to the share purchased
  • purchasers are also entitled to a further discount on any further shares they buy, not just on the initial share.
  • participation in the scheme is voluntary but the Government is encouraging landlords to offer it 
  • receipts generated by Social HomeBuy sales will generally be used to provide more social lettings. A small proportion may be spent on other housing related projects
  • tenants may buy a 100 per cent equity in their home if they can afford to do so 
  • some, but not all, properties which do not qualify for the Right to Buy/Right to Acquire schemes may be offered for sale under Social HomeBuy. There are some exemptions, including properties in designated rural areas and groups of properties for people with long term disabilities or special needs, which are exempt from the Right to Acquire scheme and which landlords will not be able to sell under Social HomeBuy
  • landlords will carry out a financial assessment to help decide what share a tenant can afford to buy and sustain, taking into account the available discount
  • tenants should contact their landlord for further details
  • in the RSL sector, the Housing Corporation provide grant to cover the discount offered to the purchaser.  Registered Social Landlords bid to the Housing Corporation through the Affordable Housing Programme bidding process to participate

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