The Right to Buy scheme allows tenants in council or housing association properties in England to purchase their homes at a discounted price. However, there are certain conditions and rules that must be met in order to qualify for the scheme. In this article, we will explore when you have the Right to Buy, when it can be refused, and what you can do if your application is rejected.

When do you have the right to buy?

If you are a tenant in a council or housing association property, you may have the right to buy your home. However, this right is not automatic and depends on a few key factors. Let’s look at the rules that determine if you can apply for the Right to Buy scheme.

Eligibility rules

To qualify for the Right to Buy, you need to meet certain eligibility criteria:

  • You must be a secure tenant with a public sector landlord (a local council or housing association).
  • You should have lived in the property for at least 3 years (this doesn’t have to be consecutive).
  • Your property must be self-contained (meaning it’s not shared with other tenants).

If you meet these basic requirements, you may be eligible to apply for the Right to Buy scheme. However, there are also other factors to consider, such as the type of tenancy you have.

Secure and flexible tenants

You must be a secure tenant to be eligible. Secure tenants are people who have a long-term agreement with their landlord, ensuring their home cannot be taken away without a valid reason. On the other hand, flexible tenants (often found in housing association properties) may have different rights, and they may not always qualify for the Right to Buy scheme.

It’s essential to check your tenancy type and speak with your landlord to confirm if you qualify.

How the Right to Buy discount works

The Right to Buy scheme offers a discount off the market price of your home. The amount of discount you receive depends on how long you have been a tenant:

  • The longer you’ve been a tenant, the bigger the discount.
  • In most cases, you can get a discount of up to £87,200 (or up to £116,200 in London).

To learn more about how the discount works, check out this maximum discount guide.

When can Right to Buy be refused?

While the Right to Buy scheme can be a great opportunity, there are situations where your application can be refused. The reasons for refusal are generally based on your personal circumstances or the type of property you live in.

Excluded from the scheme

  • If you live in a sheltered housing scheme or if the property is due for demolition, you may not be eligible for the Right to Buy.
  • Certain properties, such as those with shared facilities, are also excluded.

Rent is in arrears or under possession proceedings

If you have unpaid rent or are under possession proceedings, your application may be refused. It’s important to keep your rent payments up to date to avoid any issues with your application.

You’ve had legal issues (e.g., anti-social behaviour injunctions)

If you’ve had legal issues in the past, such as anti-social behaviour injunctions, your application can be rejected. These legal problems can suggest that you may not be a suitable candidate for home ownership.

Suspicion of fraud or abuse of the scheme

If there is any suspicion of fraud or abuse of the Right to Buy scheme, your application will be refused. This includes providing false information or attempting to manipulate the system in any way.

What happens if your application is rejected?

If your Right to Buy application is turned down, don’t worry. There are steps you can take to try again or find out why it was refused.

The council will let you know

If your application is rejected, the council or housing association will send you a letter. This letter will tell you why your application was refused. It will explain the reasons so you can understand what went wrong.

Can you appeal or reapply?

If you don’t agree with the decision, you can appeal (ask for a review). You will need to contact the council and ask them to check the decision again. They will guide you through the appeal process, and you can provide any extra information or proof to help your case.

If your appeal doesn’t work, you might be able to reapply for the Right to Buy later. For example, if your situation changes, you could try again.

How long will it take?

The time it takes to appeal or reapply can vary. It might take a few weeks. If you plan to reapply, it’s a good idea to ask the council how long it will take so you know what to expect.

What to do if you are refused Right to Buy

If your Right to Buy application is refused, there are alternative options that can help you work towards home ownership. Here are some suggestions:

Alternative home ownership schemes

If you’re not eligible for the Right to Buy, you can explore other home ownership schemes. The government offers several initiatives to help people get on the property ladder. Some of these options might work better for your situation.

Shared ownership or Help to Buy

If you cannot afford the full price of a property, you might consider Shared Ownership or the Help to Buy scheme. These schemes allow you to buy a share of the property and pay rent on the remaining part. This can be a more affordable option compared to buying a home outright.

Speak to a mortgage broker

A mortgage broker can provide expert advice on the best options available to you if you’ve been refused the Right to Buy. They can help you navigate other home ownership schemes, find suitable mortgage products, and guide you through the application process.

Summary

The Right to Buy scheme provides a great opportunity for tenants to purchase their council or housing association property at a discounted rate. However, it’s important to understand the eligibility rules and when your application might be refused. If your application is rejected, you have options to appeal, reapply, or explore alternative home ownership schemes like Shared Ownership or Help to Buy. Always stay informed about your rights and seek professional advice when necessary to make the best decision for your home ownership goals.

If you’re unsure about your options or need help navigating the process, don’t hesitate to get in touch with a mortgage broker to find the best solution for your home ownership needs.