Council tenants offered cash to buy

p25193UK-News-8-1

Published: Friday 20th February 2015 by The News Editor

Comments (0)

Council house tenants will be paid a cash sum of up to £30,000 to move out and buy a home on the open market under an £84 million Government scheme.

The funding, announced by Chancellor George Osborne, will apply to residents who could otherwise exercise their right to buy the council home in which they live.

The cash incentive offered to tenants will be lower than the discount they would get on the price of their council home under the Right to Buy scheme but is aimed at people whose current property would not make a suitable purchase.

The Government will offer £84 million over two years from 2015/16 to fund the scheme in England, although similar incentives are already offered by some local authorities.

The funding will allow councils to offer a one-off payment of £20,000 – £30,000 in London – to eligible tenants in place of their Right to Buy discount to enable them to purchase a property on the open market.

The incentive could even be topped up to a higher amount by the local authority.

Under the Right to Buy scheme, people with five years’ tenancy are offered maximum discounts that currently stand at £77,000 outside London and £102,700 in London, with an average of around £45,000 off the price of the property.

A document issued by the Department for Communities and Local Government inviting councils to submit bids for the new fund said: “Some social tenants who are able to afford to exercise their Right to Buy are prevented from doing so because the social property in which they live is not suitable for their needs, or is difficult to mortgage.

“Older tenants may wish to move to a different area to be closer to family or into more suitable accommodation; working age tenants may want to move closer to employment opportunities; and some tenants struggle to get a mortgage, for example because they live in a property of non-standard construction.

“The Government wants to help tenants trapped in social housing as a result of these barriers to access home ownership.”

Published: Friday 20th February 2015 by The News Editor

Comments (0)

Local business search