Help to Buy Scheme
The Government offers a range of Help to Buy products to assist first time buyers onto the property ladder as well as to help current homeowners to move.
Time2Buy, the Local Help to Buy Agent for TeesValley and CountyDurham, administers the Help to Buy scheme in this area. Visit www.time2buy.org.uk for more information or call 0845 604 2942.
** 3rd January 2014 Right to Buy Announcement **
What are the changes that have just been announced?
When are the changes expected to come into force?
A. These changes will require legislative change. They will be made as soon as possible, and the aim is to do so by May of this year, subject to Parliamentary process.
How will I know when the changes have come into force?
A. We will make an announcement. You should check the government's Right to Buy website (http://www.righttobuy.communities.gsi.gov.uk/) regularly.
Are you also changing the minimum percentage discount for houses, and the rate of increase?
A. No. The minimum percentage (35 per cent after five years tenancy) is the same, and the discount increases by 1 per cent every year after the initial five year tenancy qualifying period. The government are changing the minimum eligibility period from five years to three, through the Deregulation Bill.
How many years public sector tenancy do I need to have to get 70 per cent off the purchase price?
A. When the discount changes come into force, you will still need five years public sector tenancy to be eligible for the Right to Buy. For a house, your discount will increase by 1 per cent for each further year of tenancy, up to a maximum of 70 per cent. People who have between 30 and 40 years’ public sector tenancy will benefit from the increase to the maximum percentage discount to 70 per cent. As with the current policy, you will not be able to receive more than the maximum cash cap, no matter what your percentage discount is.
How will I know if I will benefit from the changes?
A. If you already have an application in the system and you are affected by the changes, your landlord should write to tell you. But if you are not sure you can check your likely entitlement using the discount calculator on the Right to Buy website: www.righttobuy.communities.gsi.gov.uk
What is the Consumer Price Index? I’m at the maximum discount allowed (£75,000/£100,000) how do I found out how much my discount will increase?
A. The Consumer Price Index (CPI) is an index which measures the cost of living compared to the same time the previous year. Once the changes come into force, you will be able to find out the current maximum cash cap at the Right to Buy website: www.righttobuy.communities.gsi.gov.uk
I have an application in the system - how can I ensure that I get the CPI uplift/ the increased percentage discount?
A. Once the changes have come into force, your landlord will have to apply the new limits, regardless of where you are in the application process. If, however, you are due to complete before the changes come into effect and you think you are eligible for the increased discounts, then you will need to decide whether you want to continue with your application using the current discount limits or whether you want to discuss with your landlord your options for suspending your application.
My landlord is asking me to complete but I want to wait for the changes - do I have to withdraw my application and start again after the discounts increase?
A. It will depend on your landlord. If you wish to suspend your application to take advantage of the changes, you should discuss your options with your landlord. Your landlord can not force you to withdraw your application but they can ask you to complete. If you do not want to do so, and your landlord will not let you suspend your application, then you will need to withdraw your application and reapply. If applicable, you should advise your mortgage lender of your discussions with your landlord as well.