20 April 2007
Council and housing association tenants are being offered further incentives to buy shares in their homes under Social Homebuy.
Tenants will now pay a reduced sum each time they buy part of their home. Until now, discounts have been offered only on the initial share, which can be as little as 25%.
To preserve consistency with tenants buying their home outright, all savings are identical to those available locally under the right to buy scheme or, for housing association tenants, the right to acquire.
When the discounts are extended next April, tenants in London (where the maximum right-to-buy discount is £16,000) will save a further £8,000 if they increase their share or equity stake from 25% to 75%.
Just 48 tenants have bought under Social Homebuy, although more than 500 applications are in the pipeline. The scheme is offered by 41 registered social landlords and five councils, with a further 37 RSLs due to come on board shortly.
Housing minister Yvette Cooper said: 'If more people take up Social Homebuy, more receipts are available for social housing.'
Mark Vaughan, head of sales and marketing at Notting Hill Housing, said a larger discount was still needed on the initial purchase.
'A discount of £16,000 may offer significant financial help for people living in other areas of the country, but for people needing to live in London and the Southeast, it doesn't go far enough,' he said.
PFapr2007
