Discounts

Things to consider

For Houses

You will get a 32% discount after being a tenant for two years. This discount will increase by 1% for every additional year you are a tenant. For example, if you have been a tenant for 15 years you will get 45% discount (32% for the first two years and then 1% a year for the next 13 years). The discount increases for each year you have been a tenant and goes up to a maximum of 60%. By law, the maximum discount in cash terms you can get is £26,000.

For Flats

You will get a 44% discount for the first two years and an extra 2% for every additional year as a tenant. For example, if you have been a tenant for 15 years you will get a 70% discount (44% for the first two years and then 2% a year for the next 13 years). The discount increases for each year you have been a tenant and goes up to a maximum of 70%. By law, the maximum discount in cash terms you can get is £26,000.

Qualifying Tenancies

Any time you spend as a tenant of a public sector landlord will count towards your discount. You may also be able to claim discount for the time your wife, husband or parent was a tenant of a qualifying landlord.

If you have previously purchased under the Right to Buy scheme 

Please note if you have previously purchased under the Right to Buy scheme before, the amount of discount you got then will be deducted from your discount when you buy again.  The amount that any previous discount is deducted from cannot exceed £26,000 in cash terms by law.

Examples of Discounts

The table below shows what the cash value of your discount would be if your home was worth £80,000.  Please again note the discount given cannot exceed £26,000 in cash terms.

*Maximum percentage discount allowed.  By law, the discount cannot exceed £26,000 in cash terms.

Things to Note After You Purchase Your Home

Repayment of Discount

If you sell within 5 years of the purchase the amount to be repaid will be a percentage of the resale value of the property (less the value of any improvements made by the owner since exercising their Right to Buy), not the amount of the original discount. The percentage that must be repaid starts at 100% in the first year, 80% in the second year, 60% in the third year, 40% in the fourth year and 20% in the fifth year.

Example:

A property when sold under the Right to Buy was valued at £100,000 with discount given of £26,000 or 26%. If the property is then re-sold for £150,000 the table below shows how much would need to be repaid :

Right of First Refusal

If you purchase your home under the Right to Buy scheme and you wish to resell or dispose of it within 10 years, you will be required to offer it to either your former landlord or to another social landlord in your area at the full market value.  If your former landlord or another social landlord take up the Right of First Refusal the market value must be agreed between the parties or, if they are unable to agree, will be determined by the District Valuer(this office will pay the costs of employing a District Valuer).  If your offer has not been accepted within 8 weeks, you will be free to sell the property on the open market.