Right to Buy Scheme – Parliamentary Written Answer

Mr Nicholas Brown: To ask the Secretary of State for Communities and Local Government what guidance he has issued under the Right to Buy scheme to tenants who are considering purchasing leasehold properties on determining the extent of service charges and other leaseholder responsibilities for which they would assume responsibility.  

Kris Hopkins: The Government has been clear that Right to Buy applicants must be provided with information on both the benefits and responsibilities that homeownership brings. Our Right to Buy booklets: Want to make your home your own? and Thinking of buying a council flat? provide tenants with advice and tools to help them work out the costs of homeownership. The booklets are available for free from social landlords or they can be downloaded here:

http://righttobuy.communities.gov.uk/howtoapply/ 

https://www.gov.uk/government/publications/thinking-of-buying-your-council-flat--2 

The Housing Act 1985 also contains a number of duties on social housing landlords in respect to supporting potential Right to Buy leaseholders. Social housing landlords must provide all tenants with a document containing information to assist the tenant in making their decision, including on leaseholder responsibilities. As part of the offer notice to a Right to Buy applicant, landlords must also provide an estimate of service charges for the first five-years of ownership. The right hon. Member may also be interested to note that the Department is currently considering the responses to our recent consultation on proposals to cap leaseholder charges at £10,000 outside London, and £15,000 in London, where the works to tenanted homes receive future Government funding. I would expect social landlords to ensure that leaseholder charges are always proportionate and rational, and deliver good value for money.