Council tenants are now able to buy their homes and get up to £75,000.00 as a discount off the market value.

The former discount has been trebled across England and has quadrupled in London meaning that discounts on right to buy properties are being slashed by up to 50% after a five year tenancy.

The government are trying to revive the right to buy scheme as in previous years the discounts available have only ever been small, still making it difficult to purchase a property outright.

Tenants with five years residency will now qualify for a 35% discount plus a further 2% discount for every additional year that they have resided in their property. This is subject to a maximum discount in the sum of £75,000.00 and a maximum purchase price of £500,000.00, available in England only. It was previously expected that the maximum discount would be capped at £50,000.

David Cameron is hoping that the new discounts will help encourage “strong families and stable communities”.

With this new initiative, shared ownership property schemes and 90% and 95% mortgages now available, the property market should hopefully eventually improve.

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Ayesha Leslie, Partner
Ola Leslie Solicitors
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