Neighbourhood Services

HOUSING

THE HOUSING (SCOTLAND) ACT 2001

The Modernised Right to Buy

BRIEFING NOTE

The Housing (Scotland) Act 2001 which substantially modified the right to buy provisions contained within the Housing (Scotland) Act 1987 came into force on 30th September 2002.

This paper deals with the amended provisions as they will affect Scottish Secure Tenants.

Tenants who do not have a Scottish Secure Tenancy for instance those occupying a property as a condition of employment and more particularly those granted a Short Scottish Secure Tenancy will not have a Right to Buy.

Click here for the Scottish Exectutive information booklet on the Right to Buy (PDF)

1. LEVEL OF DISCOUNT

There are two levels of discount:-

Level 1
Available to:-

• tenants who were existing secure tenants on 30th Sepetmber 2002 in respect of their tenancy of the property tenanted at that time but not any subsequent tenancy granted;
  
• tenants who succeed to an existing tenancy as spouse/partner or joint tenant in respect of the tenancy inherited provided that the tenancy existed on 30th September 2002 and;
  
• tenants who were existing secure tenants on 30th September granted a new tenancy after that date, following termination of the tenancy existing on 30th September 2002 on specified management grounds, in respect of that new tenancy.

Level 1 Discount Levels
As contained in the Housing (Scotland) Act 1987:-

• Minimum discount of 32% for a house and 44% for a flat following two years occupation, rising to a maximum discount of 60% for a house and 70% for a flat.
  
• Discount levels increase by 1% for every year of occupation for a house and 2% for every year of occupation for a flat following the initial two year qualifying period.

Level 2
Available to all other new and transferring tenants

Level 2 Discount Levels
As contained in the Housing (Scotland) Act 2001:-

• Minimum discount of 20% for any property following five years continuous occupation, rising to a maximum discount of 35% or £15,000 whichever is the lower.
  
• Discount levels increase by 1% for every year of continuous occupation following the initial two year qualifying period.

Changes to the Rules for Calculating Discount for both Levels

• In calculating occupation, it is necessary to consider the new definition of 'spouse', which has been extended to include partners of the same sex.
  In addition, regard has to be taken of the new rules regarding succession. In terms of the Housing (Scotland) Act 1987, succession was restricted to:
  • Tenant's spouse or person living with them as husband or wife / joint tenant; and
    
  • Family member (subject to a twelve month period of occupation).
    
• In terms of the Housing (Scotland) Act 2001, regard has to be given to:-
  • the extension of the right to succeed to partners of the same sex; and
    
  • new succession rights granted to carers (aged sixteen or over)who have given up their own homes to provide care to the original tenant.

  Partners require a six month period of occupation prior to succession. There is no such requirement in respect of family members/carers. Statutory succession can occur on two occasions as opposed to the one allowed for in terms of the Housing (Scotland) Act 1987.
  

• Where a discount has previously been received by a tenant, his or her spouse, if living with the tenant at the date of application or in the case of a deceased spouse at the time of death, or any joint tenant this requires to be taken into account in calculating the current discount. The original discount will now in terms of statute be divided equally between the number of parties who benefited from the discount, with only that proportion applicable to the current applicant being taken into account.

2. EXEMPTIONS

• The previous exemption in respect of group housing with facilities including a call system and the services of a warden (generally sheltered housing) has been repealed and replaced with an exemption for group housing where either special facilities and/or housing support services are provided.
  
• The previous power to refuse to sell houses which have been specially designed and adapted for persons of pensionable age subject to the consent of the Scottish Ministers has been extended to all stock as opposed to stock first let on a secure tenancy before 1st January, 1990.
  
• The previous power to refuse to sell certain houses required for educational purposes remains.
  
• There is a new power to refuse to sell houses subject to the consent of the Scottish Ministers where the landlord has made a decision to demolish the house.
  

3. SUSPENSIONS TO THE RIGHT TO BUY

• Pressured Areas
  The Right to Buy can be suspended should a pressured area status be declared. This will impact on all properties tenanted within the area, except those tenanted on a secured tenancy basis before the implementation of the Act which will not be affected by the suspension. Any property tenanted after the implementation of the Act including any tenancy created following succession irrespective of the circumstances of succession will be included in the pressured area.
  
• Arrears
  A Right to Buy application can be refused if the tenant has rent arrears, Council Tax arrears or water and sewerage charge arrears. This will apply to all tenancies irrespective of when created.
  
• Eviction Proceedings
  The Right to Buy is suspended if eviction proceedings have been raised on specified conduct grounds prior to the date of application. An action is raised by the service of the appropriate notice of intention to raise proceedings for recovery of possession. This will again apply to all tenancies irrespective of when created.
  

4. REPEALS

• Rent to Loan Scheme
  The rent to loan scheme has been abolished.
  
• Lender of Last Resort
  The obligation on landlords to offer loans to tenants exercising the Right to Buy where they are unable to obtain a private sector loan has been abolished.