Right to acquire

The law around Right to Buy or Right to Acquire is changing. It means that after 26th January 2019 you will no longer be able to buy your home and the £8,000 discount won’t be available. If your home is new, that’s one that is built after 24th September 2017 this discount will end on 24th March 2018. Whether you have the Right to Buy or Acquire will depend on the property you live in and the type of tenancy agreement that you have with us. 

What is the right to buy or right to acquire?

The Right to Buy or the Right to Acquire is a government scheme giving eligible residents of Housing Associations the legal right to buy the home they currently rent. Both schemes offer you a discount off the price of your home of 25%  up to a maximum of £8,000. 

Do I have the right to buy?

If you have a secure tenancy, you may have the Right to Buy regardless of when your home was built or bought by us. There are some homes that are not in the scheme and that's ones that are for older person’s, sheltered housing or ones that have been specially adapted for a disability. If you have a starter or shorthold tenancy, then you do not have the Right to Buy or the Right to Acquire your home.

Do I have the right to acquire?

If you have a secure or assured tenancy and your home was built on or after 1st April 1997, you may have the Right to Acquire but there are some rules and exceptions. Notably, many of our homes in small towns in Monmouthshire and Powys cannot be bought under the Right to Acquire. If you have a starter or shorthold tenancy, then you do not have the Right to Buy or the Right to Acquire your home.

What homes are not eligible?

Generally, they are properties:
• In a designated rural area as specified by the Welsh Government
• In a National Park such as the Brecon Beacons National Park
• Built especially for older or disabled person

If in doubt, please ask us.

How long do I have to have held a tenancy before I can apply?

If you took up your tenancy before 18th January 2005 it is two years. If you took up your tenancy after 18th January 2005 it is five years. Periods of time spent with another landlord such as the Council or HM Forces will count towards the qualifying period.

How much will my property cost?

If your application for the Right to Acquire is approved, we will arrange for a valuation to be carried out. We may require evidence of how you will fund the purchase before obtaining the valuation.

What discount will I get?

The discount will be 25% of the value of the property up to a maximum of £8,000.

What are the initial costs of buying your home?

Typically the initial costs of buying will include:

  • Mortgage arrangement fees and building survey fees
  • The cost of a solicitor to act for you and any related legal fees

After I've bought my home what regular bills will I need to pay?

Typically the regular bills you will need to pay when you have bought your home include:

  • The mortgage and any other secured loans. (You may lose your home if you don’t keep up to date with the mortgage payments or any other secured loan payments.)
  • Building insurance, life insurance and mortgage payment protection insurance.
  • Council tax, water rates, gas, electricity and any other utility service.
  • If you are buying a flat or a house on an estate you may have to pay a service charge for shared amenities and services such as grass cutting or the costs of cleaning services.

I'm interested, what do I need to do next? 

You can download an application form, once you’ve completed it and sent it back we will inform you officially whether you qualify or not using the RTA2 Form. This will be done in four weeks if the whole of the qualifying period was with us or eight weeks if some of the time was with another landlord. We then send you a Section 125 Offer Notice, which tells you the price and the terms and conditions of the purchase. This will be done within eight weeks if you live in a house and are buying the freehold or 12 weeks if your home is a flat. If you intend to go ahead you must confirm your intention within 12 weeks and will need to arrange a mortgage. You are advised to arrange a survey of the property and you will need to appoint a solicitor to carry out the sale on your behalf. Completing the purchase now proceeds in the same way as any other property purchase.

If I'm not interested in buying my home, what happens?

If you don't want to buy your home, then you don't need to do anything. Nothing will change, and you can carry on renting your home from us.

What if I have rent arrears or have a court hearing pending?

You will be expected to clear any rent arrears before legal completion. If you are the subject of a possession order, this may prevent you from buying your home.

What happens if I sell my home?

If you sell within five years of buying under the Right To Acquire you must repay the discount as follows:

Sale within one year > the whole discount
Sale within two years > 80% of the discount
Sale within three years > 60% of the discount
Sale within four years > 40% of the discount
Sale within five years > 20% of the discount

The discount to be repaid will be a percentage of the resale value. If you sell your home within 10 years of the date you bought it, then you must offer us first refusal on buying back the property at the current market value.

You can download our Right to Acquire leaflet here.

More information about the Right to Buy and Right to Acquire is in the Welsh Government guide here.

English version
Welsh version

You can download the application form here.