The Midlands Voluntary Right to Buy pilot has been given £200m of funding, with places allocated via a ballot.
Money from the discounted sales will then be used to fund replacement homes, the government said.
Individuals and families who’ve been living in their property for more than three years are eligible to apply via the ballot.
Mortgage applicants under the scheme can often use their discount as a deposit, so they can borrow up to 100% of their purchase price, excluding fees.
The impact of the pilot is to be assessed before deciding on the next steps of the policy.
Buy at a discount
The existing Right to Buy programme allows council tenants the opportunity to buy their home at a discount of up to 70% depending on how long buyers have lived in their property.
Since 2010 almost 94,000 households have used the scheme.
Communities secretary James Brokenshire said: “This government is committed to providing opportunities for people to get a foot on the property ladder and to have a place they can call their own.
“Our £200m investment into the Midlands Voluntary Right to Buy Pilot is the first step in helping housing association tenants realise their dream of home ownership.”
New affordable homes needed
Chief executive of the National Housing Federation David Orr added: “Of course, this pilot is not the finished product. We want to take the time to get this major endeavour right.
“It will be a success for everyone involved only if every home that is sold is replaced with a new affordable home, and if the application process is as smooth as possible for tenants.”
Together is one of the lenders that provides right to buy mortgages.
Pete Ball, personal finance chief executive at the lender, said: “This is a fantastic opportunity for hard-working families – many who have rented their homes from housing associations for years – to be able to own them outright for the first time.
“Home ownership plays a vital role in social mobility, and the financial security needed for people to build a future.”