Discount Entitlement
The Right to Buy scheme gives you a discount on the market value of your home. The longer you have been a tenant, the bigger the discount you could get. This amount increases every April with inflation, view current rates.
All discounts start at 3 years of the eligible tenancy and discount levels for houses and flats are different, go to the website here for further details, but in summary -
- House - If you live in a house, discount starts at 35% for 3 years tenancy. The discount remains at 35% for the 4 and 5 years. It then increases by 1% for each extra year of the tenancy, up to a maximum of 70 per cent for 40 years of tenancy
- Flat - If you live in a flat, discounts start at 50% for 3 years tenancy. The discount remains at 50% for the 4 and 5 years. It then increases by 1% for each extra year of tenancy, up to a maximum of 70 per cent for the 15 years of tenancy
If you have bought a council property in the past under the Right to Buy scheme, the amount of discount you received for that property will be deducted from the amount of discount you are entitled to for your current property.
The cost floor rule
Your discount may also be reduced by a special rule called the cost floor. The cost floor rule may apply if your home has recently been -
- purchased by the council
- built by the council
- we have spent money on repairing and maintaining it
Under the cost the floor rule, the discount you receive must not reduce the price you pay below what has been spent on it by -
- building
- buying
- repairing
- maintaining
If the cost of works carried out over the ten-year period is greater than the market value of your home, you will not receive any discount. This period is 15 years if your home was built or acquired by us after Monday 2 April 2012.