Right to Buy
Get a discount on buying your council house!
Right to Buy is a scheme that allows tenants who live in council houses (or flats) to buy them at discounted rate. The discount increases the longer person lives in the property. Make your home really your house.
Right to Buy discount can reach up to £89,800 or £108,000 if you live in London * (correct numbers at the time of writing in September 2018). These amounts increase every year in April in line with inflation. The minimum years you have to live in council property has been decreased to only 3 years, so more people are eligible for a discount to buy their home.
*Above statistics has been sourced from Right to Buy official website (click here for source) on 21st of September 2018.
With Right to Buy scheme you still need a mortgage. However, it does not necessarily mean you need a deposit as some lenders will take the Right to Buy discount as one. Some lenders might not be willing to offer you mortgage for a flat in a high-rise block. Using a financial broker like Omega Financial will be therefore crucial as we have access to wide variety of mortgages – you will not need to go from bank to bank to check offers and terms. We will do it for you!
How does the discount work? You get a 35% discount of you’ve been a public sector tenant for three years in a house. The discount remains at 35% until you have five years public sector tenancy. After year five, the discount goes up by 1% for every extra year. Flats start at 50% after 3 years and increase 2% each year after 5 years of tenancy.