Wandsworth Council is to become the second authority in London to put a Right to Part Buy scheme into practice. They are actively encouraging tenants to make the investment in their properties, helping them to get on the property ladder and become owners.
The new scheme has been chosen following diminishing uptake on Right to Buy. The number of people taking up this option has dropped substantially due to rises in prices making it tricky for tenants to buy. To put this into perspective 128 properties were sold under Right to Buy in the area ia 2013/2014. Last year this was down to just 44.
The new scheme will allow council tenants to buy a minimum of 25% of their home. They will therefore become partial owners and their rental rate will come down accordingly. Additional equity can be purchased in the future in blocks of 10% of the value up to the full value of the property.
The first Right to Part Buy scheme was introduced in Barking and Dagenham in June 2016. Surprisingly though the idea is older than this. Hammersmith and Fulham Council approved a policy in 2014 but a change of leadership in the authority meant it was not taken forward.
Wandsworth is a good area for investment properties because of its great location and the value for money on offer. The new Right to Part Buy will allow more people to make this kind of investment, helping those currently renting council houses to become owners.
The money made from part sales will be retained within the Housing Revenue Account. The funds will be utilised to build new housing, helping the local authority on the way to satisfying the demand for creation of new homes.
At Finefair we have assisted people in the purchase of investment properties in Wandsworth for a number of years. Our experience really shows because we can offer advice about every aspect of this kind of purchase, providing very useful support. The quality we provide has helped us to build a great reputation and seen us managing portfolios of properties for numerous clients.
If you have any questions about investing in property please contact us.