1 Overview

1.1 Purpose

1.1.1 This chapter sets out the eligibility criteria and procedures which must be followed as a condition of payment to RSLs of grant to enable the tenant to exercise the Right To Acquire.

1.2 Context

1.2.1 The Right to Acquire offers qualifying tenants of qualifying properties the opportunity to purchase their home at a discount.  The discount is a fixed sum of money which varies geographically, and is set out in the Statutory Instrument. Follow asterisk for details  

 

Tenants who have the RTA can obtain the full discount if they have never received any form of public subsidy to help them purchase a property before.  Tenants who have previously received some form of public subsidy are entitled to their RTA discount, although it will be reduced by the amount of subsidy that the tenant has previously received

1.2.2 The key provisions governing the tenant's rights are set out in Sections 16 and 17 of the Housing Act 1996. The statutory procedures, discount entitlement and other requirements are governed by Part V of the Housing Act 1985, as amended by s180-189 and 192-193 of the Housing Act 2004, and as modified in relation to RTA by the Housing (Right to Acquire) Regulations 1997 which are made under Section 17 of the 1996 Act.  Schedule 2 to the Regulations sets out Part V of the Housing Act 1985 as modified. A more comprehensive list of statutory provisions is listed below:

• 1996 Housing Act Sections 16 and 17, and 20, 21, 24, 25 and 26.
• The Housing (Right to Acquire) Regulations 1997 (Statutory Instrument No. 619)
• The Housing (Right to Acquire) (Discount) (Amended) Order 2002 - SI 1091
• The Housing (Right to Acquire or Enfranchisement) (Designated Rural Areas) Orders 1997 Nos. 620-625
• The Housing (Right to Acquire or Enfranchise)(Designated Rural Areas) Order 1999. (No 1307)
  
• see www.hmso.gov.uk

1.2.3 RTA is a matter for tenants to discuss with their RSLs.  Both parties should take their own legal advice about questions such as eligibility. The Agency is not able to intervene, resolve disputes or provide legal advice.

1.2.4 RSLs must publish and provide to tenants certain information relating to RTA. Click here for more details see para 4.3 below.

1.3 Main Features Of The Scheme

1.3.1  RTA only applies to Secure and Assured Tenants occupying self contained accommodation for rent where the costs of procuring or developing those properties was part-paid for by Social Housing Grant or the Disposal Proceeds Fund. 

1.3.2  Assured Shorthold Tenancies, those who hold long leases or tenants of shared accommodation are not eligible. See Section 2

1.3.3 Schedule 5 of the Housing Act 1985, as modified by RTA Regulations, sets out the categories of cases where there is no Right To Acquire. See Sections 2  and  3

1.3.4  RTA only applies to those properties provided through SHG which was first available on or after 1 April 1997 (previously, housing associations had received Housing Association Grant).  RTA also applies to properties provided with the receipts from the Disposals Proceeds Fund, and property transferred from public sector landlords on or after that date.  See Section 3 examples.

For further guidance follow asterisk  

 

1.3.5 However, RSLs should note that properties developed with recycled Grant from the Recycled Capital Grants Fund are not subject to the RTA.

1.3.6  Schemes that received Grant Confirmation before 1 April 1997 are excluded from RTA. Allocations received before 1 April 1997 but where Grant Confirmation was on or after 1 April 1997 are not excluded. See Section 3  

For further guidance follow asterisk  

 

1.3.7 Discounts available under RTA are fixed cash amounts determined by the Secretary of State, based on the geographical location of the tenanted property. Where a tenant has previously received a discount to purchase a property, the discount entitlement for RTA will be reduced by the same amount. Follow asterisk  

 

1.3.8For RTA applications submitted on or after 2 December 1999 the amount of discount is restricted to no more than 50% of the value of the property

1.3.9 The discounts available are published as a Statutory Instrument, known as The Housing (Right to Acquire) (Discount) Order. The latest version can be located at http://www.opsi.gov.uk/si/si2002/20021091.htm

1.3.10 RSLs must claim the discount amount from the Agency within 6 months of the date of sale.
 
1.3.11  Receipts from sales must be retained by the RSL in a ring-fenced Disposal Proceeds Fund.  Proceeds can only be used for defined purposes set out by the Agency. See the DPF chapter of this Guide for details.