North Yorkshire Council – Right to Buy Policy – DRAFT

Version

Development stage

Descriptions

Key Changes Implemented

1

Initial Draft

Preliminary version of the policy document developed by the Service Improvement Team.

Baseline content created outlining the policy’s purpose, scope and provisions.

2

Internal Consultation

Circulated for internal review, including legal and departmental stakeholders for feedback.

Feedback received from legal services and relevant officers with comments documented.

3

Post Internal Consultation review

Draft prepared following internal consultation and legal review.

Incorporated legal advice and officer feedback.

4

Involved Tenant Consultation and Overview and Scrutiny Feedback

Final version created following tenant consultation and scrutiny feedback.

Amended section 10.3 relating to s157 waivers, including evidential requirements.

 

1. Introduction

North Yorkshire Council is committed to enabling eligible tenants to exercise their statutory Right to Buy (RTB) while safeguarding the long-term sustainability of its social housing stock. This policy sets out the council’s approach to administering RTB in accordance with the Housing Act 1985, as amended by the July 2025 reforms. It seeks to adopt a responsible approach which balances the business needs of the council’s housing stock with its statutory responsibilities.

2. Legislative context

This policy is underpinned by:

-          Housing Act 1985 (as amended)

-          Right to Buy (Limit on Discount) Order 2024

-           

3. Strategic Objectives

3.1 Supporting Tenant Aspirations for Homeownership

North Yorkshire Council recognises that many tenants wish to own their homes. Through the Right to Buy scheme, the Council provides eligible tenants with a fair opportunity to purchase their property at a discounted rate, in line with national legislation and the broader aim of promoting homeownership and social mobility. The government has reformed the scheme to support a fairer and more sustainable approach, enabling longstanding tenants to buy their homes while ensuring councils have the ability to replace those homes and maintain affordable housing supply.

3.2 Protecting Rural Housing Stock and Community Sustainability

Given the rural nature of much of North Yorkshire, the Council applies protections, such as Section 157 restrictions, to ensure that affordable homes remain available in small communities. This helps preserve housing for local people and supports the long-term sustainability of rural settlements.

3.3 Ensuring Compliance with Legislation and Best Practice

The Council ensures that the Right to Buy scheme is administered lawfully, fairly, and transparently. This includes regular policy reviews and alignment with national guidance and best practice.

3.4 Preventing Fraud and Misuse of the Scheme

To protect the integrity of the scheme, the Council implements robust fraud prevention measures, including identity checks and tenancy audits. Any misuse of the scheme will be investigated and addressed appropriately.

4. What is the Right to Buy?

 

The Right to Buy (RTB) is a statutory scheme established under the Housing Act 1985, which gives eligible secure tenants of local authorities and some housing associations the legal right to purchase their home at a discounted price. The scheme was introduced to promote homeownership among social housing tenants and remains a key element of national housing policy.

 

Under the RTB scheme, tenants who meet the qualifying criteria are entitled to buy their home from the Council at a price below the full market value. The level of discount available depends on the length of time the tenant has held a public sector tenancy and whether the property is a house or a flat. The discount is subject to a regional maximum and may be reduced or eliminated under certain conditions, such as recent investment in the property by the Council (known as the cost floor rule).

 

The RTB scheme is designed to strike a balance between enabling tenants to achieve homeownership and ensuring that the Council can continue to meet housing need through the responsible management of its housing stock. As such, the scheme includes a number of eligibility requirements, property exemptions, and post-sale conditions to safeguard public assets and prevent misuse.

 

The Council is legally obliged to process RTB applications in accordance with statutory timescales and to provide tenants with clear information about their rights, responsibilities, and the implications of purchasing their home. This includes guidance on the financial commitments of homeownership, the impact on benefits and support services, and the legal obligations that come with owning a former council property.

 

The Council also recognises that purchasing a home is a significant financial decision. As such, tenants are strongly encouraged to seek independent financial and legal advice before proceeding with a Right to Buy application.

 

5. Eligibility Criteria

 

To ensure that the Right to Buy scheme is accessed fairly and in accordance with national legislation, North Yorkshire Council applies a clear set of eligibility criteria. These criteria are based on the requirements set out in the Housing Act 1985, as amended, and are designed to confirm that applicants have a legitimate and sustained connection to the public housing sector.

 

5.1 Secure Tenancy Requirement

Applicants must hold a secure tenancy with North Yorkshire Council at the time of application. A secure tenancy is a form of long-term tenancy granted by local authorities that provides tenants with significant rights and protections, including the potential to buy their home. Tenants with introductory, demoted, or non-secure tenancies are not eligible for the Right to Buy until they have converted to secure status.

 

5.2 Minimum Tenancy Period

 

Applicants must have accumulated the minimum number of years of a public sector tenancy required under current legislation. This does not need to be continuous or with the same landlord. Qualifying tenancies may include time spent as a tenant of:

-          A local authority (including previous district councils within North Yorkshire)

-          A housing association or registered provider

-          The Ministry of Defence (MOD)

-          The National Health Service (NHS)

-          Other public bodies as defined in legislation

 

The Council will verify tenancy history through internal records and may request supporting documentation from other landlords or agencies.

 

5.3 Principal Residence Requirement

 

The property must be the applicant’s only or principal home. This means the tenant must live in the property as their main place of residence and must not sublet the entire property. The Council may conduct checks, including tenancy audits and visits, to confirm that the property is genuinely occupied by the applicant.

 

5.4  Joint Applications

 

Tenants may apply to buy their home jointly with:

-          Their spouse or civil partner

-          Up to three family members who have lived in the property as their main home for at least 12 months prior to the application

 

All joint applicants must meet the eligibility criteria and provide evidence of residence and identity.

 

5.4.1 Adding Persons to an Existing Application

Requests to add family members or joint tenants after an application has been submitted will be treated as corrections under Section 177 of the Housing Act 1985. The Council will:

-          Verify eligibility of the additional person(s), including the 12-month residency requirement for family members.

-          Issue a revised Section 125 Offer Notice with the same date as the original notice where appropriate.

-          Consider the impact on discount calculations (previous tenancy years may count for qualifying period but not for discount).

-          Grant short extensions to statutory timescales only in exceptional circumstances.

If the original applicant dies during the process, Section 136 HA 1985 applies, giving the new tenant a fresh 12-week period to respond to the revised Section 125 notice.

5.4.2 Removing Persons from an Application

Secure tenants named on the RTB application cannot be removed once the process has started. Requests to remove a secure tenant for mortgage or financial reasons will not be accepted, as the statutory Right to Buy belongs to them.

 

5.5  Disqualifying Conditions

 

Applicants will not be eligible for the Right to Buy if they are subject to any of the following:

-          Possession proceedings: Where the Council has initiated legal action to recover the property due to rent arrears, anti-social behaviour, or other breaches of tenancy.

-          Bankruptcy or Individual Voluntary Arrangement (IVA): Applicants who are undischarged bankrupts or have entered into an IVA may be disqualified until their financial status is resolved.

-          Anti-social behaviour injunctions or closure orders: Tenants subject to legal orders for anti-social conduct may be excluded from the scheme.

 

The Council reserves the right to delay or refuse an application where there is evidence of tenancy fraud, subletting, or other breaches of tenancy conditions.

 

5.6 Residency and Immigration Status

 

Applicants must have the legal right to reside in the UK. The Council will carry out checks to ensure that all applicants have settled or pre-settled status under the EU Settlement Scheme (if applicable), or other valid immigration status that permits homeownership.

 

5.7 Previous Right to Buy or Right to Acquire

 

Applicants who have previously purchased a property under the Right to Buy or Right to Acquire schemes may still be eligible, but any discount previously received will be taken into account and may reduce the discount available on a new application.

 

6.  Property Eligibility and Exemptions

 

While the Right to Buy scheme is designed to offer secure tenants the opportunity to purchase their homes, not all council-owned properties are eligible for sale under the scheme. Certain categories of housing are either exempt from the Right to Buy, or have restrictions in order to protect vulnerable residents, preserve essential housing stock, and maintain the long-term sustainability of local communities, particularly in rural and high-demand areas.

 

The following types of properties are either excluded from the Right to Buy scheme under national legislation and local policy, or have restrictions:

 

 

6.1 Properties in Designated Rural Areas

 

Under Section 157 of the Housing Act 1985, properties located in designated rural areas are not exempt from the Right to Buy scheme, however, resale restrictions may apply to ensure that affordable housing remains available to local people.

 

Designated rural areas typically include small villages, parishes, or settlements with populations under 3,000, as well as areas within National Parks and National Landscapes (formerly known as Areas of Outstanding Natural Beauty (AONB)). In North Yorkshire, this includes:

 

-          The North York Moors National Park

-          The Yorkshire Dales National Park

-          The Howardian Hills National Landscape

-          Nidderdale National Landscape

-          Rural parishes

 

6.2 Recently Built or Acquired Properties

 

Properties that have been built or acquired by North Yorkshire Council after 1 July 2025 may be subject to future exemptions from the Right to Buy scheme, in line with the proposed Right to Buy (Exemptions and Conditions) Regulations 2025. These regulations, which are not yet in force, propose a 35-year exemption period to protect newly developed or strategically acquired housing stock from immediate loss through RTB. Acquired properties include homes constructed by the Council as new builds, homes purchased on the open market (including previously owned or “second-hand” properties), and ex-council homes bought back after a previous Right to Buy sale.

 

Until these regulations are enacted, such properties will be assessed under existing legislation, including the cost floor rule, which may limit or eliminate the discount available.

 

6.2.1 Implications for Tenants Moving into Buy-Back Properties


Tenants who move into properties that have been bought back by the Council or acquired after a previous RTB sale should be aware that these homes may be subject to RTB exemptions or restrictions.

 

While the Council anticipates future legislative changes (such as the proposed 35-year exemption under the draft Right to Buy (Exemptions and Conditions) Regulations 2025), these are not yet in force.

In the meantime, properties may still be subject to the cost floor rule, which limits or removes the discount where the Council has invested significantly in the property within the last 30 years.  

 

6.3. Sheltered Housing

 

Sheltered housing is designed for older people who wish to live independently but with access to support. These properties typically include:

-        On-site support staff

-        Emergency call systems

-        Communal lounges or kitchens

-        Adapted layouts for accessibility

These homes are exempt from RTB due to their specialist design and the support services provided, which are not suitable for general homeownership.

6.4 Supported Accommodation

Supported housing provides tailored support for individuals with disabilities, mental health needs, or other vulnerabilities. These properties may include:

-        Staffed support services

-        Individual care plans

-        Adaptations for accessibility

The exemption ensures that these homes remain available for those who need specialist support and cannot be replaced easily within the general housing stock.

6.5 Accommodation for Elderly Persons

Properties that are particularly suitable for occupation by elderly persons, even if not formally designated as sheltered or supported housing, may also be exempt under Paragraph 11 Schedule 5 of the Housing Act 1985, provided that:

-        The property was first let before 1 January 1990

-        It is designed or adapted to be particularly suitable for occupation by elderly persons, considering factors such as location, size, design, and heating

-        It is currently let (or was previously let) to a person aged 60 or over

 

When assessing suitability, the Council will disregard any adaptations made by the tenant. The exemption is intended to preserve housing stock that meets the specific needs of older residents and cannot be easily replaced within the general housing market.

 

6.6 Properties with Significant Adaptations

 

Homes that have been substantially adapted for tenants with disabilities may also be exempt from the Right to Buy. This includes properties with:

-          Wheelchair-accessible layouts

-          Specialist bathing or kitchen facilities

-          Through floor lifts

-          Structural modifications for mobility

These exemptions are assessed on a case-by-case basis. The Council must balance the tenant’s right to buy with the need to retain accessible housing for future applicants with similar needs.

 

6.7 Temporary Accommodation

 

Properties used as temporary accommodation, such as those provided under homelessness duties or for emergency rehousing, are not eligible for Right to Buy. These homes are not let on secure tenancies and are intended for short-term use only. As such, they fall outside the scope of the RTB scheme.

 

6.8 Properties Subject to Demolition or Redevelopment

 

Where a property is subject to an Initial or Final Demolition Notice under Schedule 5A of the Housing Act 1985, the Council may suspend or refuse a Right to Buy application. This applies where the Council formally intends to demolish the property within a specified timeframe (usually within five years).

This exemption ensures that regeneration projects are not disrupted and that tenants are not encouraged to purchase homes that are due to be demolished.

7.  Discount Structure

 

The Right to Buy scheme offers eligible tenants a discount on the market value of their home, reflecting their length of tenancy in the public sector. The discount is intended to reward long-term tenants for their commitment to social housing while ensuring that public assets are not sold significantly below their value without appropriate safeguards.

 

The discount structure is determined by national legislation and is subject to annual updates by the Secretary of State. The current structure, as of the Right to Buy (Limits on Discount) Order 2024, applies the following rules:

 

7.1  Discount Based on Property Type and Tenure Length

 

The level of discount a tenant receives depends on two key factors:

-          The type of property (house or flat)

-          The length of time the tenant has spent in public sector housing

 

Length of Qualifying Tenancy

Discount for Houses

Discount for Flats

3-5 years

35%

50%

Each additional year after 5

+1%

+2%

Maximum Discount

70% of property value or £24,000 (Yorkshire and Humber) - whichever is lower

 

-          For houses, the discount starts at 35% if you’ve been a public sector tenant for between 3 and 5 years. After 5 years, the discount increases by 1% for each additional year of tenancy, up to a maximum of 70%, or £24,000 (whichever is lower).

-          For flats, the discount starts at 50% if you’ve been a public sector tenant for between 3 and 5 years. After 5 years, the discount increases by 2% for each additional year of tenancy, also up to a maximum of 70%, or £24,000 (whichever is lower).

 

The discount is calculated against the full market value of the property, which is determined by an independent valuation arranged by the Council.

 

Note: As of 21 November 2024, the government has reduced the maximum cash discount to £24,000 in Yorkshire and the Humber. Further reforms are under consultation. The Council will update this policy to reflect any future legislative changes once enacted.

 

 

7.2  Maximum Cash Discount

 

Regardless of the percentage discount calculated, there is a maximum cash discount cap that applies regionally. For the Yorkshire and Humber region, the cap is currently set at £24,000.

 

This means that even if the percentage discount would result in a higher reduction, the discount cannot exceed this cash limit. The cap is reviewed annually and may be adjusted by the government in line with inflation or policy changes.

 

7.3  Cost Floor Rule

 

The cost floor rule is a safeguard that prevents properties from being sold at a loss to the public purse. Under this rule, if the Council has spent money building, acquiring, or significantly improving the property in the last 30 years, the discount may be reduced or eliminated.

-          The cost floor is the total amount the Council has invested in the property during this period.

-          If the cost floor is equal to or greater than the market value of the property, no discount will be applied.

-          If the cost floor is less than the market value, the discount will be limited so that the sale price does not fall below the cost floor.

 

This rule is particularly relevant for newly built or recently refurbished homes, but it also applies to properties where significant capital works such as roof replacements, structural repairs, or major upgrades have been carried out, and ensures that public investment is protected.

 

7.4 Previous Discounts

 

If the applicant (or any joint applicant) has previously purchased a property under the Right to Buy or Right to Acquire schemes, the amount of discount previously received will be deducted from the discount available on the current application. This prevents individuals from benefiting multiple times from the scheme beyond the statutory limits.

 

7.5 Valuation Disputes

 

If a tenant disagrees with the Council’s valuation of the property, they have the right to request an independent valuation by the District Valuer. The District Valuer’s decision is final and binding on both parties. This process ensures fairness and transparency in the valuation process.

 

8. Application Process

 

The Right to Buy process is governed by statutory procedures and timescales set out in the Housing Act 1985. North Yorkshire Council is committed to ensuring that all eligible tenants are supported through each stage of the process with clear guidance, timely communication, and access to independent advice where needed.

 

Before submitting a Right to Buy application, tenants are strongly advised to seek independent legal and financial advice. Purchasing a home is a significant financial commitment and involves a range of legal responsibilities that differ substantially from renting a council property.

 

Independent advice can help tenants to:

-          Understand the full costs of homeownership, including mortgage repayments, insurance, maintenance, and service charges (for leasehold properties).

-          Assess affordability and long-term financial sustainability.

-          Review the legal implications of purchasing a leasehold or freehold property.

-          Understand the risks of mortgage arrears, repossession, or resale restrictions.

-          Clarify the impact on benefits, tax liabilities, or entitlement to future housing support.

 

While the Council will provide information about the Right to Buy process, it cannot offer financial or legal advice. Tenants are encouraged to consult:

-          A solicitor or licensed conveyancer

-          An independent financial advisor or mortgage broker

-          Citizens Advice or other housing support organisations

 

This step is essential to ensure that tenants make informed decisions and are fully aware of their rights and responsibilities as prospective homeowners.

The application process consists of the following key stages:

 

8.1  Submission of RTB1 Application Form

 

To formally apply, tenants must complete and submit the RTB1: Notice Claiming the Right to Buy form. This form is available:

-          Online via the Council’s website

-          In paper format upon request

-          With assistance from the Council’s housing officers if needed

 

The RTB1 form must be completed in full and signed by all applicants. It should include:

-          Full names and dates of birth of all applicants

-          Details of tenancy history

-          Confirmation of the property address

-          Declaration of principal residence

-          Evidence of identity and residency (e.g. utility bills, ID documents)

 

Incomplete or unsigned applications will be returned and may delay the process.

 

8.2  Eligibility Assessment (Statutory Timescale: 4 Weeks)

 

Upon receipt of a valid RTB1 form, the Council will carry out an eligibility assessment within 4 weeks. This includes:

-          Verifying tenancy status and duration

-          Checking for disqualifying conditions (e.g. possession proceedings, bankruptcy)

-          Confirming the property is not exempt from RTB

-          Reviewing joint applicant eligibility

 

If the tenant is eligible, the Council will issue an RTB2: Notice of Right to Buy confirming eligibility. If the tenant is not eligible, the Council will issue a Notice of Refusal, explaining the reasons and the tenant’s right to appeal.

In some cases, the Council may be unable to complete the eligibility assessment within the standard 4-week timescale due to delays in receiving information from third parties (e.g. previous landlords or government departments). Where this occurs, the Council will inform the applicant of the reason for the delay and provide an estimated timeframe for resolution. The application will remain open while the necessary information is sought.

 

8.3 Repairs During RTB Process

 

Once a valid RTB application is received, the Council will carry out emergency and health & safety repairs only. All other outstanding or planned non-urgent repairs will be cancelled. This ensures public resources are used appropriately and avoids carrying out non-essential works on properties due for sale.

 

8.4 Property Valuation and Offer Notice (Section 125 Notice)

 

If the tenant is eligible, the Council will instruct a qualified valuer to carry out a market valuation of the property. This valuation:

-          Reflects the open market value at the time of application

-          Does not include the discount

-          May be adjusted if the tenant disputes the figure (see 8.6)

 

Following the valuation, the Council will issue a Section 125 Offer Notice within:

-          8 weeks for houses

-          12 weeks for flats

 

The Offer Notice includes:

-          The full market value of the property

-          The discount the tenant is entitled to

-          The purchase price after discount

-          Any structural defects or issues identified

-          Terms and conditions of sale

-          Details of service charges (for flats or leasehold properties)

-          Information on the cost floor rule and any restrictions

 

8.5 Tenant Response to Offer (Statutory Timescale: 12 Weeks)

 

Tenants must respond to the Offer Notice within 12 weeks of receipt. They may:

-          Accept the offer and proceed with the purchase

-          Decline the offer and withdraw the application

-          Request an independent valuation if they disagree with the Council’s valuation

 

If no response is received within 12 weeks, the Council will issue a reminder notice. If there is still no response after a further 28 days, the application will be deemed withdrawn.

 

8.6 Disputing the Valuation

 

If the tenant believes the market valuation is too high, they may request an independent valuation by the District Valuer (DV). This request must be made within 12 weeks of receiving the Offer Notice.

-          The DV’s valuation is final and binding

-          The DV may inspect the property

-          The Council will issue a revised Offer Notice if the DV’s valuation differs

 

8.7 Conveyancing and Legal Process

 

Once the tenant accepts the offer, they must:

-          Appoint a solicitor or licensed conveyancer

-          Arrange mortgage finance (if applicable)

-          Complete legal documentation and searches

 

The Council will instruct its legal team to prepare the sale documents, including:

-          The transfer deed (for freehold sales)

-          The lease (for leasehold flats)

-          Any restrictive covenants or resale conditions

 

8.8 Completion of Sale (Statutory Timescale: 3 Months)

 

The sale must be completed within 3 months of the tenant’s acceptance of the Offer Notice. If delays occur, the Council may serve a Notice to Complete under Section 140 of the Housing act 1985, giving the other party an initial 56 days to finalise the sale. If the sale is still not completed, a Final Notice under Section 141 gives a further 56 days, after which the application may be deemed withdrawn.

 

Conversely, if the Council causes undue delay in progressing the sale, the tenant may serve a Notice of Delay under Sections 153A and 153B. If upheld, the tenant may be entitled to a reduction in the purchase price equivalent to the rent paid during the delay period.

 

8.9 Post-Completion Support

 

After completion, the Council will:

-          Remove the tenant from the housing register (if applicable)

-          Provide information on post-sale responsibilities (e.g. repairs, service charges)

-          Register the s157 rural restriction or s156A right of first refusal restriction on the local land charges register

 

The registration of the Transfer, including any restrictive covenants, discount repayment charges, and title registration, is the responsibility of the buyer’s solicitor. These restrictions will also be recorded on the property title as part of the solicitor’s application to HM Land Registry.

 

The new owner becomes responsible for all aspects of property ownership, including insurance, maintenance, and compliance with lease or covenant terms.

 

9. Post-Sale Conditions

 

Purchasing a property under the Right to Buy scheme brings with it a range of legal and financial responsibilities that differ significantly from those of a council tenant. North Yorkshire Council has a duty to ensure that former tenants understand and comply with these post-sale conditions, which are designed to protect public investment, prevent misuse of the scheme, and preserve the long-term availability of affordable housing.

 

The following conditions apply after the completion of a Right to Buy sale:

 

9.1 Right of First Refusal

 

Under s156A Housing Act 1985 as amended by the Housing Act 2004, properties purchased through the Right to Buy scheme on or after 18 January 2005 are subject to a Right of First Refusal for a period of 10 years from the date of completion. This Right of First Refusal does not apply to properties that are subject to a Section 157 rural restriction.

 

This means that if the owner wishes to sell the property within that 10-year period, they must first offer it back to:

-          North Yorkshire Council (as the original landlord), or

-          Another registered social landlord nominated by the Council

 

The property must be offered at full market value, as determined by mutual agreement or, if necessary, by the District Valuer. If the Council or nominated landlord does not accept the offer within 8 weeks, the owner is free to sell the property on the open market.

This condition is registered as a restrictive covenant on the property title and must be complied with before the Land Registry will register any change of ownership.

 

9.2 Discount Repayment (Resale within 5 Years)

 

If the property is sold within 5 years of the original Right to Buy purchase, the owner is required to repay some or all of the discount received. The amount to be repaid is calculated on a sliding scale:

-          Year 1: 100% of the discount

-          Year 2: 80%

-          Year 3: 60%

-          Year 4: 40%

-          Year 5: 20%

 

The repayment is based on the resale value of the property, not the original purchase price. If the property has increased in value, the amount to be repaid will reflect the proportion of the discount in relation to the new market value.

 

Example:

You bought your home worth £100,000 and got a 20% discount (£20,000). You then sold your home after 18 months for £120,000.

 

20% of £120,000 is £24,000. As you’re in the second year, you would repay 80% of £24,000 (£19,200).

 

9.2.1 Exceptions to Discount Repayment

 

Exceptions may apply in cases of financial hardship, relationship breakdown, or other extenuating circumstances, but these are assessed on a case-by-case basis.

 

In certain circumstances, the Council may exercise discretion to waive or reduce the amount of discount that must be repaid if the property is sold within 5 years of purchase. This will be considered on a case-by-case basis and may apply in situations such as:

-        Financial hardship (e.g. mortgage arrears, repossession risk)

-        Relationship breakdown (e.g. divorce or separation)

-        Bereavement of a joint owner

-        Domestic abuse or safeguarding concerns

-        Serious illness or disability requiring relocation

-        Job loss, redundancy, or relocation for employment

 

Evidence Required: Applicants must provide supporting documentation, which may include:

-        Medical letters or reports

-        Court orders or police reports

-        Financial statements or debt advice letters

-        Proof of job loss or relocation

-        Legal separation or divorce documentation

How to Apply: Requests for a waiver or reduction must be made in writing to the Council’s Housing Service, accompanied by relevant evidence. Each case will be assessed by a senior officer, and applicants will be notified of the outcome in writing.

9.3  Restrictive Covenants

 

The Council may impose restrictive covenants on properties sold under the Right to Buy scheme. These are legally binding conditions that limit how the property can be used or altered. Common covenants include:

-          No conversion of the property into multiple units or a House in Multiple Occupation (HMO)

-          No commercial use of the property

-          Maintenance obligations for leaseholders (e.g., flats)

-          No structural alterations or erection of external structures (e.g. extensions, sheds, garages) without the Council’s prior written consent

 

These covenants are designed to protect the character of the neighbourhood, ensure ongoing maintenance of shared areas, and prevent the inappropriate use of former council homes.

 

9.4 Leaseholder Responsibilities (Flats and Maisonettes)

 

Where the property sold is a flat or maisonette, the buyer becomes a leaseholder, and the Council retains the freehold. Leaseholders are responsible for:

-          Paying annual service charges for maintenance of communal areas, buildings

-           insurance, and major works

-          Complying with the terms of the lease, including restrictions on alterations and subletting

-          Contributing to Section 20 major works where applicable

 

Failure to meet lease obligations can result in legal action, including forfeiture of the lease.

 

9.5 Land Registry and Legal Compliance

 

All post-sale conditions, including the Right of First Refusal and discount repayment obligations, are registered with HM Land Registry. Buyers will not be able to register a change of ownership or refinance the property without first complying with these conditions.

Solicitors acting for purchasers are required to explain these obligations in full and ensure that they are understood and accepted before completion.

 

10. Rural Protections

 

North Yorkshire Council is committed to preserving the long-term availability of affordable homes in rural communities, where housing need is often acute and opportunities for new development are limited. To achieve this, the Council applies a range of statutory and policy-based protections to properties located in designated rural areas.

 

These protections are designed to ensure that homes sold under the Right to Buy scheme remain accessible to local people and are not lost to the open market, second-home ownership, or speculative investment.

 

10.1 Legal Basis for Rural Protections

 

The primary legal mechanism for rural protection under the Right to Buy scheme is Section 157 of the Housing Act 1985. This provision allows local authorities to impose resale restrictions on properties located in designated rural areas, as defined by the various Housing (Right to Buy) (Designated Rural Areas and Designated Regions) (England) Orders.

 

10.2        Designated Rural Areas in North Yorkshire

 

North Yorkshire contains a significant number of designated rural areas, including:

-          National Parks such as the North York Moors and Yorkshire Dales

-          National Landscapes (formerly known as AONB) such as the Howardian Hills or Nidderdale National Landscapes

-          Small parishes and settlements with populations under 3,000

 

These areas are identified based on their rural character, limited housing supply, and the strategic importance of retaining affordable homes for local residents.

 

 

10.3        Section 157 Resale Restrictions

 

Where a property is located in a designated rural area or National Landscapes (formerly known as AONB) and is sold under the Right to Buy scheme, the Council will apply a Section 157 restriction to the title of the property. This restriction means that:

-          The property cannot be resold without the Council’s consent. The Council may refuse consent unless the prospective buyer meets specific local connection criteria.

 

These criteria typically require the buyer to:

-          Have lived or worked in the local area for a minimum of 3 years, or

-          Have close family ties (e.g. parents, children, siblings) who are permanent residents of the area

 

The purpose of this restriction is to ensure that homes remain available to people with a genuine connection to the local community.

 

North Yorkshire Council will not remove Section 157 restrictions. However, temporary consent for disposal outside these restrictions may be considered in circumstances, subject to the evidential requirements outlined below.

-          Proof that the property has been marketed for at least 12 months.

-          Marketing materials clearly stating the Section 157 restriction.

-          Assurance that the property has been marketed at a fair market value, including any adjustment to reflect the restriction. We would suggest that this assurance is gained via an independent valuation (e.g. Align).  

-          Proof of market activity including offer details. 

or

-          A signed offer of employment or contract confirming the purchaser will work at an operational base within the local area

 

 

12. Future Changes to the Right to Buy Scheme

 

The Right to Buy scheme is subject to ongoing review and may be amended by future legislation or government policy. Tenants should be aware that changes to eligibility criteria, discount levels, exemptions, or application procedures may occur. The Council will update this policy accordingly and communicate any significant changes to tenants through its usual channels. It is recommended that tenants seek advice from the Council or independent housing advisors to understand how future reforms may impact their ability to purchase their home.

 

13. Performance Monitoring

 

The Council is committed to transparency, accountability, and continuous improvement in the delivery of its services. Performance in relation to the implementation of this policy will be monitored through the Housing Revenue Account Performance Framework.

 

14. Communication and tenant's voice

 

A copy of this policy can be found on the Council website and can be requested in PDF format or hard copy. An easy read version will also be available. If needed in a different format, please let the Council know and all reasonable efforts will be made to provide this. The policy will regularly be promoted to tenants via the Council’s communication channels including via the tenant's newsletter.

 

15. Equalities statement

 

The Council will ensure that this policy is applied fairly and consistently to all tenants and leaseholders. An equality assessment was carried out during the development of this policy. This concluded that the implementation of this policy will not have any negative impacts. The Council recognises that in application of this policy that there is not one solution for all, each situation will be different, and different resolutions may be sought. The Council will take individual circumstances and diverse needs and vulnerabilities of our tenants with a range of solutions in mind – within the restrictions placed by relevant legislation.

 

16. Policy review

 

This policy will undergo an initial review after one year, followed by a review every three years by the Service Improvement Team to ensure alignment with legislative, regulatory, and best practice developments. Where necessary, interim updates may be made outside of the scheduled review cycle to maintain the policy’s relevance, fairness, and effectiveness, particularly in response to new legislation or regulatory changes.

 

Last updated:

 

Approved:

 

Review Date:

 

17. Contact

For comments or complaints about a service or to request compensation please contact:

Insert Contact details