This option offers some housing associations or local authority tenants the opportunity to buy a share in their rented home. Customers must be a secure council tenant or an assured housing association tenant to qualify, and must have been a social housing tenant for at least five years.
Tenants can purchase a minimum initial share of 25% of the home. The remaining unowned equity is retained by the landlord.
You can buy additional shares at a later date until you own 100%. This is called staircasing and is based on the current market value at the time that you purchase the additional shares. If you increase your share in the property, your rent is re-calculated and reduced proportionately.
If you wish to sell your property, your share is marketed for sale through your housing association, to allow further people in need of housing to benefit from low-cost home ownership. The property is resold at market value at the point of resale.