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Social tenants could be offered £30,000 to buy new home

Posted: 10th April 2015   In: Residential Conveyancing

Social housing tenants could be offered up to £30,000 to enable them to leave their rented accommodation and buy their own home.

The move is an extension to the Right to Buy scheme, which has been running for several years and has enabled nearly 2 million tenants to buy their home at discounted prices. Although the scheme has been successful, ministers say that it is not suitable for everyone.

They point out that some tenants who may have the right to buy are prevented from doing so because the home they live in is no longer suitable for them. They may not want to live there any longer, or it may be difficult to get a mortgage on the property.

Older tenants may want to move to be closer to their families; working age tenants may want to move closer to their work or to where there are better employment opportunities.

To address these issues, the government is launching an £84m fund to help tenants get on to the property ladder by moving out of their current home and buying elsewhere.

It has invited local authorities to bid for a share of the money so they can fund schemes in their areas.

One-off payments of up to £20,000 (£30,000 in London) will be available to tenants who are eligible for a Right to Buy discount but don’t want to stay in their current home and would prefer to move to another area.

The local authority bids are now being assessed. We shall keep clients informed of developments.

Please contact Shyam Patel if you would like more information about the legal aspects of buying and selling a home.

Posted by: Shyam Patel
Commercial Property
Luton Office