MILLIONS of renters could buy their homes with a discount of up to £16,000 through a little-known scheme.
Around four million people who rent a property from a housing association could be eligible for the “Right to Acquire” scheme, as long as they meet certain requirements.
1
The scheme allows eligible renters to buy their home at a huge discount of up to £16,000, depending on where in the UK they live.
There have been 9,671 recorded house sales through the Right to Acquire scheme since it was introduced, according to the latest data from Homes England.
Am I eligible for Right to Acquire?
You can buy your housing association home if you have had a public sector landlord for at least three years.
Public sector landlords can include:
- housing associations
- the armed services
- councils
- NHS trusts and foundation trusts
Your landlord must be registered with the Regulator of Social Housing to qualify.
Your home must also have been built – or bought by a housing association – after 31 March 1997, and it must be your main home.
You can make a joint application with someone who shares your tenancy, or up to three family members who have lived with you for the past 12 months – even if they aren’t on the tenancy.
Most read in Money
You can’t use the scheme if you are being made bankrupt, a court has ordered you to leave your home or you’re a council tenant – where you are provided with housing by a council.
However, council tenants may be able to use the “Right to Buy” scheme instead.
What discount could I get on my home?
You can get a discount of between £9,000 and £16,000 on your property price. This is based on where you live.
Discounts are generally higher for those living in the South of England and lower for those in the North of England.
For example, most London boroughs qualify for a £16,000 discount, while those living in Greater Manchester can get between £9,000 and £11,000 off their house price.
But this is not always the case. The discount can vary even within the same county.
In Kent, you can get a £16,000 discount if you live in Sevenoaks – but you will get just £10,000 off if you live in Ashford or Canterbury.
You can check the full list of discounts on the Government website.
How do I apply?
To apply to buy your home, you will need to fill out the Right to Acquire application form on the government website.
You then need to send the application to your landlord, who must respond within four weeks.
If your landlord accepts your application, they will need to get the home valued by a surveyor and send you an offer.
The next step will be looking for a mortgage to fund your purchase.
What if I don’t have a deposit for a house?
You may be able to buy your housing association home even if you don’t have money to put down as a deposit.
This is because some mortgage lenders will accept the discount on the house price instead of a deposit.
Some mortgage lenders may accept the discount for most of your deposit, but ask you to contribute some of the money as well.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected]
