As residential conveyancing solicitors, we’re committed to keeping our clients informed about significant changes in property law. The right to buy scheme is undergoing substantial changes, with maximum discounts reducing considerably from 21 November 2024. This comprehensive guide outlines everything you need to know about the scheme, its eligibility criteria, and the crucial upcoming changes.

Key changes to right to buy discounts

Current maximum discounts (applications received by 20 November 2024):

  • England (excluding London): £102,400
  • London: £136,400

New maximum discounts (from 21 November 2024):

  • England (excluding London): £16,000
  • London: £38,000

What are the legal requirements?

To qualify for right to buy, you must meet the following legal criteria:

  1. Property status:
    • The property serve as your primary residence
    • It must be self-contained (no shared facilities with other households)
    • You must be a secure tenant with a valid legal contract
  2. Tenure requirements:
    • Minimum of three years as a public sector tenant
    • This can be non-consecutive and across multiple properties
  3. Legal standing:
    • No outstanding County Court judgments
    • No pending bankruptcy proceedings
    • Clear legal title to exercise Right to Buy

Joint applications: legal considerations

You may submit a joint application with:

  • Co-tenants
  • Spouse or civil partner
  • Up to three family members who have resided at the property for 12+ months

Discount structure and legal entitlements

Houses

  • 3-5 years’ tenancy: 35% discount
  • 5+ years’ tenancy: Additional 1% per year (maximum 70%)

Flats

  • 3-5 years’ tenancy: 50% discount
  • 5+ years’ tenancy: Additional 2% per year (maximum 70%)

The legal process can take weeks, sometimes months dependent on the circumstances.

Legal obligations post-purchase

Resale restrictions

  1. First 10 years:
    • Must first offer the property to previous landlord/local social landlord
    • Market value to be agreed upon or determined by district valuer
  2. Discount repayment schedule:
    • Year 1: 100% repayment
    • Year 2: 80% repayment
    • Year 3: 60% repayment
    • Year 4: 40% repayment
    • Year 5: 20% repayment
    • After Year 5: No repayment required

Things to consider

When purchasing a right to buy, consider the responsibilities in reference to maintaining the property, service charges (these are important for leasehold properties, building insurance requirements, any future sale restrictions, and mortgage obligations.

If you are thinking about pursuing a right to buy, we advise you speak to one of our conveyancers who can check your eligibility, gather the necessary documentation and go through the process from start to finish.

How can we help?

Gayle Fordham is a Partner and Head of our Residential Conveyancing team.

If you have any queries on the above subject, please do not hesitate to get in touch with Gayle on 01206 835269 or complete our online enquiry form.