Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 23
23
Paragraph: 132
We recommend that, in line with the five year period which covers discount repayment, the...
Recommendation
We recommend that, in line with the five year period which covers discount repayment, the Government prevents Right to Buy homes being privately let within five years of purchase. This will require legislating to implement a covenant against letting for a five year period. This is not without precedent: Help to Buy properties include a covenant which prevents private renting. The Government’s justification is that Help to Buy is designed to assist you to move on or up the housing ladder, words that could apply just as aptly to Right to Buy.
Paragraph Reference:
132
Government Response
Acknowledged
HM Government
Acknowledged
As the Committee has said, tenants who exercise their Right to Buy must repay a portion of their discount to their council if they sell within the first five years. The discount repayment is based on the resale price and ranges from 100% in the first year to 20% in the fifth year. In addition, tenants who wish to sell their property within 10 years of purchase must offer their local authority first refusal to buy it back. Otherwise, the Government believes that tenants who have bought their homes under the Right to Buy should have the same freedoms as other homeowners, including on letting of the property.