The Government is setting aside £84 million to help council tenants social housing buy their own home on the open market.
The Right to Buy Social Mobility Fund is being offered as an alternative to tenants that qualify for the Right to Buy scheme, but need more suitable accommodation or are unable to get a mortgage on their current property.
The Department for Communities and Local Government is inviting councils in England to submit bids for the new fund which will be split over two years from 2015/16.
Who is the fund aimed at?
The fund is being aimed at older people who want to downsize or move closer to family.
[SPOTLIGHT]But the Government is also interested in helping workers that want to move closer to employment opportunities as well as tenants who may struggle to get a mortgage because they live in a property of non-standard construction.
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How much can you get?
Councils that win funding will be able to give out individual grants of up to £20,000 to people outside London and £30,000 for those in the capital.
However, councils are encouraged to top up the lump sum with their own reserves too.
Eligible tenants will receive the cash in place of their Right to Buy discount and enable them to purchase a property on the open market – freeing up council housing stock for others.
Under the Right to Buy scheme, people that have been living in their council house for five years or more are eligible for discounts on the market value of the property should they wish to purchase it.
The maximum discount available on council flats and houses in England is up to £77,000 outside London or £102,700 for those that live in the capital.
On average people using the scheme save £45,000 off the market price of their property.
When will the funding be available?
Councils have been invited to submit bids and have until 18th March to stake a claim for the funding.
Successful councils will be notified by the end of March and funding will be available by the second quarter of 2015/16.
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