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

2. 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

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

4. 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

5. 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

6. 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.

8. 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

9. 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.

10. 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.

11. 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

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

13. Questions