2 Applicant Eligibility

2.1  General  

2.1.1  RTA does not apply to all Secure and Assured Tenants or to all property provided by the RSL. Although the scheme shares some of the features of the Right to Buy scheme (Part V 1985 Housing Act) there are important differences in how the scheme operates for RSL tenants.

2.1.2  The following guidance summarises the legislative provisions of the scheme, describes the processing requirements for RSLs to follow when dealing with a tenant's application and sets out the Agency's requirements on the application of sales proceeds. The guidance is not exhaustive and cannot be taken as an authoritative interpretation of the law. RSLs should consult the relevant statutory provisions for the RTA scheme and seek legal advice where appropriate.
 
2.1.3  RTA does not provide for any application of a preserved Right to Buy; Rent to Mortgage option; Right to a Loan for payment of service charges; or delay procedure.
 
2.1.4  The RSL should ensure that all tenants living in qualifying properties after 1 April 1997 are given information on RTA. An information booklet has been produced by the Agency, which can be downloaded from Publications. If required hard copies can be requested from the Agency’s publication team.
 
2.1.5 RTA/SHB only applies where the tenant:

1. Occupies an eligible property (mostly self contained accommodation for rent, but with exceptions - see section 3.
2. Are secure or assured tenants of the RSL (not those who hold Assured Shorthold Tenancies or long leases or are tenants of shared accommodation);
3. Has been a public sector tenant for the required minimum time see section 2 below.

2.1.6  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.
 
2.2  Qualifying Period For RTA 

2.2.1  For new tenancies created on or after 18 January 2005, the Right To Acquire can only be exercised where the tenant has been a tenant of a public sector landlord for a qualifying period of five complete years. See Section 2.3 below and its link for details of public sector landlords. 

2.2.2 For tenancies created before 18 January 2005, the qualifying period was two complete years.

2.2.3 Previous public sector tenancies can count towards the qualifying period and need not be continuous

2.2.4  The one exception to this ability to count non-continuous periods of residence is where the RSL acquired the property under a mortgage rescue arrangement and the previous owner is now the tenant. In these cases the tenant must have been a tenant of their current home for 2 or 5 complete years, depending upon whether the tenancy was granted and before or after 18 January 2005.
  
2.3  Public Sector Landlords 

2.3.1  To be eligible for RTA on the grounds of residence the applicant must have accrued the minimum period of time as a tenant of a public sector landlord or landlords.  For a list of public sector landlords, please see the following link to the Directgov website. The list is currently located on pages 14-15 of the PDF accessed through the heading, “Download the Right to Buy application form (RTB1)”. However, users should be aware that this is an external website and any information could be subject to change.

http://www.direct.gov.uk/en/Diol1/DoItOnline/DoItOnlineByCategory/DG_069239

2.3.2  For the purposes of establishing a qualifying public sector tenancy, time spent in accommodation provided by the Armed Services qualifies.
{link to Schedule 4 paras 6 – 8 of the Housing (Right To Acquire) Regulations 1997}
 
2.4  Detailed Eligibility Criteria 

2.4.1  Subject to a Secure or Assured Tenant occupying a qualifying property provided by a RSL, the tenant has the right to purchase the freehold of a house or a lease of a flat (or a house, if the landlord does not own the freehold).  RTA does not apply where the freehold interest is owned by a non public sector body - see Section 3

2.4.2  Where a tenancy is a joint tenancy not all the tenants need to exercise their RTA. Provided agreement is reached with other joint tenants the purchase can proceed in the name of one of them, provided it is that joint tenant's only or principal home. In the event of other joint tenants not agreeing to the purchase, RTA cannot be exercised. Where a joint tenant objects to the application proceeding they should do so in writing to the RSL.

2.4.3  Tenants may jointly purchase with up to 3 members of their family who live with them in the RSL property at the time that the application is made

2.4.4  If the tenant is purchasing property with a mortgage, the mortgage has to be provided by an Approved Lender  see sub section 4.15  

2.4.5  The following categories of tenants are not eligible for the scheme:

• tenants occupying property on an assured shorthold tenancy, licence or a long lease;
  
• tenants of Abbeyfields or Almshouses;
  
• tenants of fully mutual co-operatives;
  
• tenants of co-ownership societies;
  
• an undischarged bankrupt or a tenant who has a bankruptcy petition pending against him/her or has an arrangement with creditors, the terms of which remain to be fulfilled;
  
• a tenant who is obliged to give up possession of the tenanted property in pursuance of an order of the court or will be obliged to at a date notified in the order 
• A tenant who is the subject of a ‘suspension order’ or ‘suspension status’

2.4.6  Tenants meeting the eligibility criteria at application stage must continue to do so up to the exchange of contracts. 

2.5   Suspensions for Anti-Social Behaviour

2.5.1  Applications for RTA can be suspended on the grounds of anti-social behaviour. Follow asterisk for details.  

 

2.5.2  RSLs must clearly set out their policy stating the circumstances under which ‘suspension status’ will be applied to relevant tenancies.  The RSL's policy should be that ‘suspension status’ will be applied only if the RSL is satisfied that the tenant or a person living in the property, or visiting the property, has engaged or has threatened to engage in anti-social behaviour (which includes using the premises for unlawful purposes), and that it is reasonable for a ‘suspension status’ to be applied. 

2.5.3  Where the RSL decides to apply ‘suspension status’ to a tenancy, the reasons and evidence for the decision should be fully documented and the existing tenants notified that it has been applied to their tenancy for RTA purposes.
 
2.5.4  Once applied, ‘suspension status’ will have the effect of suspending an existing RTA application and/or preventing new applications and claims being made during the period of suspension.
 
2.5.5  Application of ‘suspension status’ will also remove RSLs obligations to complete RTA sales (e.g. convey the freehold or grant a lease) during the period of suspension.   
 
2.5.6  The existence of a ‘suspension order’ or ‘suspension status’ does not affect the accumulation of a tenant’s qualifying period.