We have three options for tenants who want to buy their home from us. Your eligibility for each option depends on the type of rental agreement you have and when the home was built. There are three schemes that can help you buy your rented home; the Right to Buy, the Right to Acquire and the Right to Shared Ownership.
Why buy your rented home?
As a tenant, you could get a discount on buying the home you rent. Owning a home has its benefits, like it can be an investment for the future, and you can personalise it. But it's a big decision with responsibilities and costs, so it's best to get advice from experts before you decide. The government offers free assistance through agents who specialise in helping people buy homes.
The Right to Buy
The Right to Buy scheme in England helps people who rent from the council or a housing association buy their homes for less money. If you became a resident with us before 15 January 1989 and currently hold a secure tenancy, you may be able to buy your home with us through the Right to Buy.
In some cases, your tenancy will allow you the Right to Buy, but other circumstances may prevent us from allowing you to buy your rented home. Some examples include specially adapted homes, on-going legal action and Anti-Social Behaviour.
You can add other people to your Right to Buy application, but there are rules about who can join. If you qualify, you can buy the property with:
- Someone listed on the tenancy agreement with you.
- Your spouse or civil partner.
- Up to three family members who lived with you for the past 12 months. They don't have to be on the tenancy agreement, but they must have lived in the home as their main residence. We may ask for proof of this.
Your home's value is determined by us, your landlord, based on its estimated selling price in the current market. We'll hire a professional valuer with a RICS qualification to assess its market value by visiting your home. If you disagree with our valuation, you can request a free valuation from an independent 'District Valuer'. However, if you appeal and the new valuation is higher, we must use that higher value, and a new offer will be issued based on it.
If you sell your home within the first five years, you might have to give back some or all of the discount you got when you bought it. But after five years, you can sell it without repaying any discount.
The Right to Acquire
If you have an assured tenancy with us, and you live in a home that was built with public funds after 1 April 1997, you may have the right to ‘acquire it.’ The length of time you have been a tenant also affects your ability to purchase your home.
Some homes may not be available for the Right to Acquire scheme. This includes homes designed for people with disabilities, those suited for elderly individuals, properties in specific rural areas exempted by the government, and homes where we lack legal authorisation for leases exceeding certain durations. This list isn't exhaustive, and we'll inform you if your home qualifies for the scheme.
You can add other people to your Right to Buy application, but there are rules about who can join. If you qualify, you can buy the property with:
- Someone listed on the tenancy agreement with you.
- Your spouse or civil partner.
- Up to three family members who lived with you for the past 12 months. They don't have to be on the tenancy agreement, but they must have lived in the home as their main residence. We may ask for proof of this.
Your home's value is determined by us, your landlord, based on its estimated selling price in the current market. We'll hire a professional valuer with a RICS qualification to assess its market value by visiting your home. If you disagree with our valuation, you can request a free valuation from an independent 'District Valuer'. However, if you appeal and the new valuation is higher, we must use that higher value, and a new offer will be issued based on it.
If you sell your home within 10 years of buying it through Right to Acquire, you have to offer it to us first. If you sell within 5 years, you may need to repay some or all of the discount you got. If you sell within the first year, you'll likely have to pay back the full discount. The amount you repay depends on your home's selling price. For instance, if you got a 10% discount, you'd repay 10% of the selling price.
The Right to Shared Ownership
The Right to Shared Ownership lets renters in Social or Affordable Rent homes buy part of their place, usually between 10% and 75% of its value, and pay rent on the rest. It's a different way to own a home, good for those who can't afford the usual route. You don't have to share with anyone unless you want to. You own a bit of your home while renting the rest. To qualify, you must be our tenant, live in the home for at least a year, and meet income limits. Over time, you can buy more of your home (called staircasing), reducing your rent as you do. For most homes, you can work up to 100% ownership.
What’s next?
Talk to us! If you’re thinking about buying a home with us, we can help you with your next steps.
Buying a home can one the biggest decision you will ever make, and it isn’t right for everyone. Here’s some of the things you may wish to consider:
Upfront Costs (if applicable):
- Solicitors' Fees: These are charges for legal services during a house purchase.
- Mortgage Valuation Fee: This covers the cost of a survey to assess the property's value.
- Mortgage Arrangement Fee: This is charged by the lender for arranging the mortgage.
- Stamp Duty Land Tax (SDLT): This is a tax imposed by the government on residential property purchases.
Ongoing Costs (if applicable) to consider:
- Mortgage Payment: You'll make this payment to your lender each month.
- Service Charge: This includes costs for the wider estate or apartment block, like insurance, maintenance, and cleaning.
- Reserve Fund: This is collected as part of the service charge and is set aside for major works or repairs.
For more advice, talk to an independent mortgage broker.
Buying your home may change some services as you'll be responsible for things like boiler repairs and insurance.
If you buy a home, you'll have to cover all the costs for fixing, maintaining, and insuring it. Before you buy, it's essential to get advice on the home's condition. There might also be additional charges for things like grounds upkeep and shared areas.
For flats and maisonettes, you're responsible for repairs inside your own property. You'll also need to pay service charges for maintaining the building, grounds, and communal areas. Make sure you understand your responsibilities under your lease agreement.
Buying your rented home guide
Find out more about our schemes that provide you the opportunity to purchase your rented home from us.
