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Social HomeBuy

This scheme gives opportunities to social tenants to buy a share in their rented home, at a discount. It is aimed at those tenants who do not have the Right to Buy or Right to Acquire, but cannot afford to buy outright, or those whose homes do not qualify for the Right to Acquire.

tenants of participating landlords can purchase a minimum initial share of 25 per cent of a home. The remainder of the equity will be retained by their landlord who will be able to levy a charge of up to 3 per cent of the capital value of their retained equity
buyers receive a discount on the initial share purchased and on any additional shares they buy. The discount is equivalent to the Right to Acquire discount for the area in which the property is located (generally between £9,000 and £16,000), pro-rata to the share purchased
participation by landlords in the scheme is voluntary
receipts generated by Social HomeBuy sales will generally be used to provide more social lettings and some may be spent on other housing related projects
tenants may buy 100 per cent equity in their home if they can afford to do so
some, but not all, properties which do not qualify for the Right to Buy/Right to Acquire schemes may be offered for sale under Social HomeBuy
there are some exemptions, including properties in designated rural areas and landlords may not sell groups of properties earmarked for people with long term disabilities or special needs under Social HomeBuy
landlords will carry out a financial assessment to help decide what share a tenant can afford to buy and sustain, taking into account the available discount
tenants should contact their landlord for further details
the Homes and Communities Agency (HCA) provides grant to Registered Social Landlords (RSLs) to cover the Social HomeBuy discount offered to the purchaser. RSLs bid to the HCA through the Affordable Housing Programme bidding process to participate.