Government Proposing New Right to Buy Rules for Council Tenants

Date of Release: Tue 7th February, 2012

Following a recent consultation, the Government is proposing changes to the rules that allow council tenants to apply to buy their homes.  These changes include an increase in the amount of discount tenants can claim, and changes in the way the money received from the sale is split between the Council and the Government.  The changes also propose a scheme to allow every additional home sold to be replaced with a new one.

Currently many council tenants who have lived in social housing for five years or more are eligible to apply to buy their home at a discounted rate. The only tenants excluded from this are those with a Possession Order for rent arrears or living in properties specifically designed or adapted for the elderly or disabled.

The level of discount available depends on the length of tenancy, with the current maximum being £24,000. The new proposals suggest a maximum discount of £50,000 for those who have been tenants for 30 years or more.

Under current rules the Council keeps just 25% of the proceeds of every Right To Buy sale with the remaining 75% having to be paid to Central Government.  The proposed new rules would see this split of funds change, with more money being kept locally to build replacement homes, although the exact amount depends on the number of homes sold.

Councillor Roger Bayliss, North West Leicestershire District Council’s Portfolio Holder for Housing and Customer Services, said: “We are carefully considering what these proposals would mean for all tenants in North West Leicestershire. On the face of it, an increase in discounts should be welcome news, but we have to balance this with the need to continue to provide services to our remaining tenants.”

To find out more go to the Right To Buy section of the Council’s website.

The consultation period closed on 2nd February 2012, with the changes proposed due to  be made as early as April 2012.