You get additional discount for each year you qualify.
The maximum right to buy discount in London has been increased to help council tenants purchase their home.
From 6 April 2022, the discount in Ealing is increasing to £116,200. This increase applies to applications received on or after 6 April 2022 only and is not retrospective. Applications received before this date will continue to be eligible for £112,800 only.
Discount rates and cap
- The current discount rates are:
- For houses: 35% of the property’s value plus 1% for each year beyond the qualifying period up to a maximum of 70%
- For flats: 50% plus 2% for each year beyond the qualifying period up to a maximum of 70%.
- The maximum right to buy discount in Ealing will increase to £116,200 from 6 April 2022
- The cost floor is the sum of all money spent by the council on a given property within the last 10 years
- The period of time the cost floor covers will be increased from 10 to 15 years for new homes subject to right to buy, bringing rules for councils into line with those for housing associations and protecting initial investment in the housing
- For example, a property sold under the right to buy cannot be sold less than the cost floor. For example if the council has spent £100,000 (cost floor) rebuilding a house and a right to buy application is put in and the valuer ‘s value the property at £180,000, the tenant would normally receive £116,200 discount, with the discount applied the purchase price would be £67,200. However, because this is below the cost floor, the cost rule would apply. Therefore the property would be sold for £100,000.
- For each property sold under the right to buy a new property will be built (nationally).