Explanatory note

These Regulations amend the Housing (Preservation of Right to Buy) Regulations 1993 which modify Part V of the Housing Act 1985 (the right to buy) for cases in Wales where an authority or body disposes of a qualifying dwelling-house let to a secure tenant and the tenant’s right to buy is preserved by section 171A of that Act. The amendments do not apply, however, where the disposal to which section 171A applies was made before the date on which these Regulations come into force.

The amendments relate to the calculation of the cost floor which limits the amount of discount a tenant can receive when exercising the right to buy. Previously the only costs included in the calculation of the cost floor were the costs of acquisition or construction of the dwelling house and the costs of improvements, but under these amendments these costs have been extended to include the costs of some works of repair and maintenance.

Where the dwelling-house had no value on a transfer to the landlord which required the approval of the Secretary of State or the National Assembly for Wales, the costs have been further extended to include the costs of certain communal facilities, administrative costs not exceeding £2,000 and professional and consultancy fees.