"This is a fantastic opportunity for hard-working families - many who have rented their homes from housing associations for years - to be able to own them outright "
The £200 million pilot gives individuals and families who have been living in the property for more than three years large discounts of up 50% on price of their home.
Nearly 20 housing associations in areas including Birmingham, Nottingham, Leicester and Stafford have already signed up to the voluntary scheme, which follows an earlier pilot of five associations in 2016. The government has said that any properties bought under the scheme will be replaced like-for-like.
Those who meet the government’s eligibility criteria will be entitled to a Right to Buy discount. Tenants living in houses will get a 35% discount (50% discount for flats) on the price of the property, if they have been a public sector tenant for three years. After five years the discount increases by 1% for every year up to a maximum of 70% or £80,900, whichever is lower.
Pete Ball, personal finance CEO at the specialist lender Together, said: “This is a fantastic opportunity for hard-working families - many who have rented their homes from housing associations for years - to be able to own them outright for the first time.
“We can help by providing right to buy mortgages for those who are often underserved by mainstream banks and building societies. For example, borrowers may be self-employed or reaching retirement; they may want to buy a house made of concrete or a flat more than six floors up and could struggle to get a mortgage in such situations.
“Home ownership plays a vital role in social mobility, and the financial security needed for people to build a future. We’re excited to be helping housing association tenants do this under the voluntary Right to Buy scheme to give them the opportunity to realise their dreams.”
