With Social HomeBuy, you buy a share of your council or housing association home and pay rent on the rest of it.
To apply, ask your landlord for an application form.
You’ll get a discount of between £9,000 and £16,000 on the value of your home, depending on:
- where your home is
- the size of the share you’re buying
If you want to buy another share in your home later on, you’ll get a discount on that too.
Buying more of your home later
You must buy at least 25% of your home. You can buy more later, until you own 100%. This is called ‘staircasing’.
If you buy more of your home, your rent will go down - because it’s based on how much of the property you rent. Your landlord can charge rent of up to 3% of the value of their share of your home, per year.
Example Your home is worth £240,000 and you buy a 50% share. Your landlord charges you 3% rent on their 50% share. 3% of £120,000 is £3,600 per year. This works out at £300 per month for you to pay in rent.
Who can’t apply
You can’t use Social HomeBuy if:
- you have an assured shorthold tenancy
- you’re being made bankrupt
- a court has ordered you to leave your home
- your landlord is taking action against you for rent arrears, anti-social behaviour or for breaking your tenancy agreement
Not all local councils or housing associations have joined the scheme. Check with your landlord to find out if they belong to the scheme and whether your home is included.