Discounts

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%. The maximum discount 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%. The maximum discount you can get is £26,000.

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.

The table below shows what the cash value of your discount would be if your home was worth £80,000.

Repayment of discount

If you have bought your home under the Right to Buy, you can sell it whenever you like. But if you wish to sell within the discount repayment period specified below, you will usually have to repay some or all of the discount.

The amount you pay will depend on when you made your application to buy.

If you applied for the Right to Buy before 18 January 2005 and sell within 3 years of buying your home

If you sell within the first year after your purchase, the whole of the discount will have to be repaid. Two thirds must be repaid if you sell in the second year, and one third in the third year. After 3 years, you can sell without repaying any discount. The discount is the sum you actually rreceived when you purchased your home.

If you apply for the Right to Buy on or after 18 January 2005 and sell within 5 years of buying your home

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 madeby the owner since excercising their Right to Buy), not a percentage of the cash value 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 the table below shows how much would need to be repaid: