InformationS.156A Housing Act – Right of first refusal or pre-emption
Frequently asked questions on the right of first refusal (Section 156A of the Housing Act 1985)
1. What is the “right of first refusal” under Section 156A of the Housing Act 1985?
If you bought your property from a local authority and want to sell it within ten years of the original purchase, you must first offer it back to the relevant local authority. This is called the “right of first refusal”. There are some exceptions, known as “exempted transactions” (see separate guidance: ‘Exempted Transactions under the Housing Act 1985 (Section 160)’).
2. Who does this apply to?
This applies to the person who originally bought the property under the right to buy, as well as anyone who inherits or later owns the property (successors in title).
3. What if I inherit a property with this covenant?
If you inherit the property as an executor, you do not have to offer it back to the local authority at first (this is an exempted transaction). However, if you later decide to sell the property within ten years of its original purchase, you must offer it to the local authority first.
4. How is the price decided if the local authority (or its nominee) wants to buy the property?
The price should be the full market value, agreed between you and the local authority (or its nominee). If you cannot agree, a District Valuer will decide the price.
5. How long does the local authority have to decide?
The local authority has 8 weeks from receiving your offer notice to decide if it (or its nominee) wants to buy your property. If it does not agree to buy within this timeframe, you are free to sell to someone else. However, if the property is not sold within 12 months of the day after:
- the expiration of this 8-week period (where the local authority has failed to respond); or
- service of a rejection notice,
the offer process must be repeated.
6. What happens if I refuse to offer to sell to the local authority?
You will be in breach of covenant and may be liable for damages.
7. How do I make the offer to the local authority?
There is no set form, but the Housing (Right of First Refusal) (England) Regulations 2005 require you to serve an “offer notice” containing certain information. East Devon District Council provides a form you can use for this purpose accessible via this link: Offer Notice
8. Is there a charge levied by East Devon District Council for considering my offer?
Yes, there is a non-refundable fee which must be paid at the same time as lodging the above form, for your application to be considered.
9. What happens after I send the offer notice?
East Devon District Council will review your offer and respond by email to say whether it (or its nominee) wants to buy the property. If it does not want to buy and notifies you of such, its decision is valid for up to twelve months commencing on the day after service of its rejection notice. If you do not sell within that time, you must repeat the offer process.
10. How can I check if my property is affected by this requirement?
Check your registered title (available from HM Land Registry for a small fee) or speak to your own legal adviser. Properties located in Sidmouth, Honiton, Seaton, and Exmouth often have this covenant.
11. Where can I get more advice?
You should consult your own legal adviser.
12. Is this guidance legally binding?
No. This guidance is not a definitive statement of the law. You should rely on your own legal advice regarding the statutory provisions.
Legal Services
East Devon District Council
October 2025