The Right to Buy Tenants Panel - 4th July 2017 Peter Haytack/Helen Gardner

The Right to Buy Councils have always had the ability to sell council houses RTB introduced in 1980 Secure tenants can buy their home at a discount to the full market value

RTB History 1980 - RTB introduced 1997 - 2010 - Discounts reduced, qualifying period increased, right of first refusal introduced. 2012 - Discounts increased, qualifying period reduced 2016 - Voluntary RTB for Housing Association tenants proposed….funded through levy on Local Authorities 2016 - RTB abolished in Scotland 2017 - Bill going through Welsh Assembly to abolish RTB 2017 - Identifying further pilots for VRTB

Who Has The Right To Buy You have the RTB if you are a secure tenant of a RTB landlord You must have been a public sector tenant for at least 3 years The right applies to the dwelling you are occupying Introductory tenants don’t have RTB But introductory tenancy does count toward the qualifying period Fixed term tenancies are a form of secure tenancy so do have RTB

Freehold and Leasehold If you buy a house it’s usually freehold That means you are the outright owner If you buy a flat it’s usually leasehold This means you are responsible for the interior of the flat and the landlord is responsible for the structure, common parts and exterior of the building Service charges and charges for major works will usually be payable

The Discount Rules House Year 3 Year 4 Year 5 Year 6+ 35% Additional 1% per year up to max 70% Flat Year 3 Year 4 Year 5 Year 6+ 50% Additional 2% per year up to a max 70% Whatever percentage you are eligible for the discount cannot be greater than £78,600.

Cost Floor Rule Applies where the landlord has recently purchased/built/spent money on the property The discount must nor reduce the price below what was spent Applies in the 10 year period prior to receipt of the RTB application form… or 15 years if your home was built or acquired by the landlord after 2 April 2012

Repayment of Discount You can sell your home when you like……but if within 5 years of purchase some or all of the discount must be repaid: 100% of the discount in the first year 80% of the discount in the second year 60% of the discount in the third year 40% of the discount in the fourth year 20% of the discount in the fifth year The actual amount to pay back depends on the market value of the property when sold.

Right of First Refusal If you are a RTB purchaser and sell your home within 10 years you must offer it back to your former landlord at market value.

Exemptions from the RTB Sheltered Housing Tenancies let by way of the tenants employment Dwellings due to be demolished Dwellings on land subject to development Temporary Lettings Homes which the landlord has leased from someone else

RTB - Costs to Consider Mortgage or loan Solicitors costs Survey Stamp duty Buildings Insurance Life Insurance Income Protection Insurance Repair and Maintenance Service Charges

Questions