If you live in a council house, then you're in luck! It's been announced this week that the Right to Buy discount has increased to up to £104,900 in London and up to £78,600 outside the capital, meaning it's now more affordable for you to own your council home. The longer you have been a tenant, the bigger the discount you get off the market value of your home, the maximum discount being £78,600 or £104,900 if you live in London.
Discount levels for houses and flats are worked out differently, and start at three years of eligible tenancy, increasing to a maximum of 70% of the property value depending how long you've been a tenant.
If you live in a council house, you get a 35% discount if you've been a public sector tenant for three years. The discount remains at 35% until you have five years public sector tenancy. After year five, the discount goes up by 1% for every extra year you've been a public sector tenant, up to a maximum of 70% – or £78,600 across England and £104,900 in London boroughs, whichever is lower.
If you live in a flat, you get a 50% discount if you've been a public sector tenant for three years. The discount remains at 50% until you have five years public sector tenancy. After year five, the discount goes up by 2% for every extra year you've been a public sector tenant, up to a maximum of 70% – or £78,600 across England and £104,900 in London boroughs, whichever is lower.
