Social HomeBuy scheme (SHB)

The Social HomeBuy (SHB) scheme provides new opportunities for tenants, who do not have the Right to Buy or Right to Acquire or who cannot afford to buy their property, to buy a share in their rented home.

Tenants of participating landlords will be able to purchase a minimum initial share of 25% of a home. The remainder of the equity will be retained by their landlord.

Buyers will receive a discount on the initial share purchased. The discount will generally be between £9,000 and £16,000 - depending upon the local authority area in which the property is located, pro-rata to the share purchased.

Participation in the scheme is voluntary but the Government is encouraging landlords to offer it. At least initially, there will be some flexibility in the precise terms of the scheme to ensure that providers can make it work both for themselves and for buyers, and to trial different products.

The previous Voluntary Purchase Grant scheme for housing association tenants is now part of the SHB scheme allowing tenants to buy 100% equity in their home at discount if they can afford to do so.

Properties which do not qualify for the Right to Buy/Right to Acquire schemes may be sold under SHB.

However, properties which are exempt from the Right to Acquire scheme, including those in designated rural areas and those for people with long term disabilities or special needs, are also exempt from SHB.

The SHB scheme is now being run by Lambeth Council.

To apply for the scheme download the SHB application form and How to complete forms RTB1/SHB for guidance to on how to fill in the application form.

Contact: Property Purchase Team
Tel: 020 7926 3686 quoting 'Social HomeBuy' as a reference.