Exploring the Right to Buy.
Navigating the housing market can feel like an uphill struggle if you’re a first-time buyer. Gathering the required deposit and passing eligibility checks can seem daunting. Interestingly, Knowledge Bank, who operate a mortgage search system for advisors, noticed that for the first time this July queries for ‘Right to Buy’ appeared as the fourth most popular search term.
Around the same time, the government ‘Right to Buy’ scheme was highlighted by Prime Minister Boris Johnson and most likely contributed to the rise in search queries. Currently in existence is a way for council tenants to purchase their own property at a discounted price, he mentioned the possibility of extending it to housing association tenants.
For those struggling with high deposits and house costs, the discounts are attractive. Ranging from between 35% to 70% on houses and 50% to 70% on flats, owning the place you’ve been renting suddenly becomes affordable for many.
Prospective Right to Buy purchasers do have to fulfil certain criteria. The house or flat must be their main home and have been rented from a public sector landlord for three years. As well as this, they must not have suffered debt problems.
The jury is out on other reasons for the sudden rise in Right to Buy queries. Some believe young professionals who may have been living in a family council house, may see it as the only affordable way to buy their own home. Others believe in our uncertain climate; people are looking for long-term security.
Whatever your reason, if you would like to find out more about Right to Buy, please give our advisors a call.