Friday, 10 January 2014

Right to Buy Scheme – Parliamentary Written Answer

Mr Nicholas Brown: To ask the Secretary of State for Communities and Local Government what assessment he has made of the ability of tenants to manage service charges and leaseholder responsibilities after purchasing leasehold properties under the Right to Buy scheme. 
Kris Hopkins: The Government has been clear that Right to Buy applicants must be provided with information on both the benefits and the 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 free from social landlords or can be downloaded at:
The Housing Act 1985 includes a number of duties for social housing landlords on supporting potential Right to Buy leaseholders. Social housing landlords must provide all tenants with a document containing information on leaseholder responsibilities and other matters, to assist them in making their decision. 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 Department is currently considering the responses to its 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.
Ministers are open to representations on what further steps can be taken to help public sector leaseholders.

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