Owning your Home

1 Key Objective

The key policy objectives are to:

• define FCH's policy on Right to Buy (RTB) sales for transferring tenants and their successors with the preserved Right to Buy;
• define FCH's policy on the Right to Acquire;
• define the exemptions from the Right to Acquire and Preserved Right to Buy;
• ensure that tenants wishing to buy either under the Right to Buy or the Right to Acquire are advised of the implications of house purchase, and advised to seek independent legal and financial advice before proceeding with the purchase.

2 Key Policy Standards

2.1 Subject to the exemptions within this policy, FCH is required to continue the sale of properties under Right to Buy for tenants and their successors who are secure tenants at the time of the transfer of the housing stock from King's Lynn & West Norfolk Borough Council. The tenants who fall into this category have a contractual Preserved Right to Buy as detailed in the guarantee made by the Council.

2.2 The Right to Buy provisions will not apply to new tenants of FCH, service tenancies nor to those who do not have a secure tenancy at the time of the transfer of the housing from the Council (except introductory tenants -subject to qualifying time etc). For those tenants, FCH will operate the Right to Acquire.

2.3 FCH is concerned that the purchase of any house is a long-term commitment, and probably the largest financial commitment anyone will make. It is important that any tenant wishing to buy is aware of the implications of buying their home over the long term, and advised to seek independent legal and financial advice.

2.4 Preserved Right To Buy

Under Section 171A of the Housing Act 1985 as amended, tenants who were secure tenants of King's Lynn & West Norfolk Borough Council at the time of transfer will retain the right to buy their homes, known as the preserved Right to Buy. This is subject to the exceptions where properties are exempt from the Right to Buy.

A person who succeeds to a transferred property in accordance with Section 117/3 of the Housing Act 1985 as amended will also have the Preserved Right to Buy.

A person who is entitled to the Preserved Right to Buy will be entitled to a discount calculated in accordance with Schedule 4 of the Housing Act 1985 as amended. It is the aim of FCH that the transfer shall not affect such a person's entitlement to a discount, although this is subject to legislative requirements. Additionally, tenants who are entitled to a Preserved Right to Buy will be able to exercise the right in relation to any property of FCH as long as they maintain a continuous tenancy agreement, subject to the general restrictions on purchase.

All applicants will be dealt with in accordance with Part V of the Housing Act 1985 as amended. In respect of Determination of Value, the valuation of properties will be carried out by an independent valuer acting as an expert, who shall be appointed by FCH.

Re-selling a property purchased under the 'Right to Buy'

Purchasers having applied for RTB before 18th January 2005 and seeking to re-sell their properties within 3 years of purchase will be required to repay some or the entire received discount.

Purchasers having applied for RTB after 18th January 2005 and seeking to re-sell their properties within 5 years of purchase will be required to repay some or the entire received discount. The repayment of discount will be a percentage of the market value from the property when it is resold within the first 5 years of purchase.

Properties in designated rural areas contain a covenant, which restricts the subsequent disposal of the property without the consent of FCH, which consent must be given if the purchaser has lived or worked in the district of King's Lynn and West Norfolk for the last 3 years.

The 'Right of First Refusal' may be applicable where a former tenant wishes to re-sell a house purchased from the Council or FCH under the Preserved RTB. The 'Right of First Refusal' scheme requires that a home purchased form the Council or FCH under the Preserved RTB be offered for sale first to FCH under certain circumstances.

The Preserved Right to Buy provisions will not apply to new tenants of FCH.

2.5 Right to Acquire

New tenants to FCH, after transfer may qualify for the right to buy their homes, through the 'Right to Acquire' with a discount determined by the Government, subject to exceptions.

Properties in certain rural areas containing settlements where the population is 3,000 or fewer are exempt from the Right to Acquire scheme.

FCH will dispose of any dwellings provided by FCH with public finance in accordance with the provisions of Sections 16 and 17 of the Housing Act 1996 (Right to Acquire). However, this will be subject to the exemptions outlined in this policy.

2.6 Exemptions to the Preserved Right to Buy and Right to Acquire

a) General Exemptions

Except where required to do so by legislation, it is not FCH's policy to sell any dwelling that is particularly suitable for occupation by elderly / disabled persons. This includes property specifically built for the purpose and could include those with a community alarm installation.

In addition, FCH will not sell any property forming part of a sheltered scheme, or accommodation provided for people with special needs.

FCH will be bound by any determination that the Residential Property Tribunal may make in relation to the applicability of the Right to Buy and Right to Acquire provisions and exemptions including minimum population criteria.

b) Exemptions from the Preserved Right to Buy

The Preserved Right to Buy will not apply to individual dwellings forming a group of dwelling houses served by either a resident or non resident Warden, with a warden call system and communal facilities such as a common room and laundry etc.

The Right to Buy will not apply to single dwelling houses suitable for occupation by elderly persons (aged 60 or over) first let before 1st January 1990 and let to a tenant or predecessor in title.

In addition, any tenants who are not secure tenants at the time of the transfer of the housing stock from the Council will be exempt from the Preserved Right to Buy provisions. The occupiers of hostel accommodation, persons who are entitled to succeed to a transferred property and tenants who occupy their home as a part of their duties with FCH (for example wardens etc.) will be exempt.

c) Exemptions from the Right to Acquire

FCH may determine whether in its view a dwelling is particularly suitable for occupation by elderly or disabled persons, and therefore exempt from the Right to Acquire. In so doing, FCH will have regard to location, size, design, heating system and other relevant features, such as community alarm installation.

The Right to Acquire will also not apply to

• dwellings for those with special needs and
• dwellings charged with debts equal to or greater than the purchase price plus discount
• any tenancies which are not let on assured shorthold tenancies for example, tied accommodation, hostels etc.

3. Key Targets and Performance Indicators

Compliance with Housing Corporation Regulatory Code 3.5.

Performance of RTB's against Business Plan assumptions

The impact on the housing register and homelessness statistics

4. Monitoring, Review and Consultation process

The Board will receive regular reports on the performance of RTB's etc.

Reports to the Housing Corporation.

Consultation with tenants, the local authority and other representative groups on performance of the system.

5. Service Development and Continuous Improvement (CI)

To be completed following separate agreement of the CI process and timetable and any consequential recommendations arising from its implementation.