Distributed to: All registered social landlords (excluding co-ownership societies, almshouse charities and Abbeyfield societies).

1 Introduction

1.1 Government is concerned about the activities of some companies who, while purporting to offer advice and assistance to secure tenants wishing to buy homes, are in actual fact seeking to exploit the scheme for their own advantage.

2 Preventing abuses of the RTB scheme

2.1 To help protect tenants interests it is requested that RSLs should warn RTB applicants of the problems. RSLs are advised to report known instances of dubious practices to the relevant local authority who may intervene using their appropriate consumer protection powers.

2.2 To assist social housing landlords in this role the Department for Transport, Local Government and the Regions (DTLR) has produced an addendum to the free RTB booklet Your right to buy your home. The addendum identifies three common forms of abuse, including companies or individuals charging tenants for helping them exercise their right to buy. A copy of the addendum is attached at Appendix 1 to be inserted in all copies of the RTB booklet and sent out to tenants together with the RTB application form. Future print copies of the booklet will include the information provided in the addendum.

2.3 The DTLR is restricting availability of the RTB application form, RTB1, to one copy per person. Only local authorities, RSLs and the Citizens Advice Bureaux will able to obtain the form in bulk. RSLs are advised to exercise similar restraint in issuing RTB1 forms in order to help inhibit the activities of less scrupulous companies.

3 Enquiries

3.1 Please direct any queries on this circular to Capital Funding Section of the Housing Corporation at Maple House on 020 7393 2038.

Appendix 1

Warning - getting advice on the Right to Buy

Is someone trying to buy your council home?

The DTLR and local authorities are concerned that tenants do not always receive good advice when they ask private companies and individuals for help buying their council homes.

Sometimes, tenants are asked to pay a lot of money for things that landlords will do for nothing - for example, Right to Buy application forms are available free from landlords. Or they are paid money as part of a deal under which the company ends up owning the property. Good for the company, which can charge a higher rent than the council could when it let the property. But not always good for tenants. The money they get may not be enough to prevent them from becoming homeless

It is often claimed that the right to buy scheme is going to be changed or ended. The Government made it clear last year in its Housing Green Paper that it has no intention of making any further significant changes to the Right to Buy scheme. Be suspicious if anyone tries to tell you otherwise. They may be trying to persuade you to do something that benefits them rather than you.

If you need advice on any aspect of the Right to Buy scheme, contact your council first. If you are approached by a person or a company offering to help you to buy your council home, check out what´+¢s in it for them and talk to your council before signing up to any deal. Advice on how a scheme works generally is also available from DTLR on 020 7944 3427.