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The objectives of the Cash Incentive Scheme (CIS) are to release local authority accommodation for letting to those in housing need and to encourage owner occupation where it is sustainable. It works by landlords paying a grant to a tenant to assist them to buy a property in the private sector.
It is up to each local authority to decide whether to run a CIS scheme - they do not need the Secretary of State's consent. Tenants have no mandatory right to a CIS grant. Local authorities may also set the size of grant payable to take account of the local housing market. All grants must be means tested.
Local authorities can target the scheme to free up accommodation in areas of the borough where there is a shortage of social housing; or to release types of property for which there is a high demand, eg family sized accommodation.
Currently there is no central funding for CIS, so local authorities must fund schemes from their own capital resources.
