Right to buy
Question
Can I apply for the right to buy my council house if I've had rent arrears or claimed housing benefit in the last 12 months?
Answer
You can certainly apply to buy your house under the right to buy scheme. But the council does not have to go ahead with the sale if you still have rent arrears. The government have produced a leaflet about right to buy (pdf file) which explains the scheme in detail.
The fact that you have been claiming Housing Benefit will have no affect on your application. Just be aware that once you own the house you won't be able to claim housing benefit to help with the mortgage. You may be able to get some help through Income Based Job Seeker's Allowance, but that will only cover interest payments. Even then, it may not cover the full cost.
Another problem you may face is actually getting a mortgage. This is because the rent arrears will show on a credit reference check and they may decide you are a poor risk. This could lead to them either refusing to lend you money or requiring you to pay a larger deposit or extra interest.
There will also be various legal and other professional fees you will have to pay before the purchase can be finalized, these can often amount to over a thousand pounds. For further help, Advice Guide provides detailed information about the whole house buying process.
Updated: 02/02/2007
Question answered by CAB
