28 August, 2014
Following earlier approval by both Houses of Parliament, The Housing (Right to Buy) (Maximum Percentage Discount) (England) Order 2014 came into force on 21 July 2014, offering a 70 per cent maximum percentage discount for prospective Right to Buy applicants of houses in England - an increase of 10 per cent from 2012. This brings the maximum discount available for houses in line with flats.
Although the Prime Minister had previously revealed the government's intention to 'raise right to buy discounts … [and] rejuvenate the housing stock,' the incumbent Minister of State for Housing and Planning, Mr Brandon Lewis MP, authorised the statutory instrument on 20 July 2014. The maximum monetary discount will continue to increase annually in order to remain aligned with the consumer price index (the measure of inflation through the changes in the price of goods).
What do these changes mean?
The escalation of the maximum percentage discount signifies a sizeable boost for the right to buy scheme. With this 10 per cent increase the government expects a further 20,000 Right to Buy sales, and DCLG statistics confirm a three-fold increase in Right to Buy sales between July-September 2013 in comparison to the equivalent period in 2012.
Therefore, the preceding developments, the rise in the maximum percentage discount through the Order and an upwards market are set to increase the quantity of homes sold on the Right to Buy programme.
For further information please contact Lucy Worrall.