What is Right to Buy?
Right to Buy is a statutory scheme, introduced under the Housing Act 1980, that gives qualifying council tenants in England the legal right to purchase their rented home at a discount. The discount is intended to reward long-term public-sector tenancy and to help people onto the property ladder who might otherwise find it impossible to build a deposit.
The scheme was significantly expanded in 2012 when the government raised the maximum discount caps, leading to a sharp rise in applications. However, concerns about the loss of social housing stock led the government to reverse course: from 21 November 2024 the maximum cash discounts were reduced back to the regional levels that applied before the 2012 changes. That means the headline discounts available today are considerably lower than they were between 2012 and 2024.
Housing association tenants do not usually have the same statutory Right to Buy. Some housing association properties that transferred from council ownership retain what is known as the Preserved Right to Buy, meaning those tenants can still apply under the original rules. Others may qualify for the Right to Acquire scheme (covered below), which offers a smaller discount. Always check directly with your landlord to confirm which, if any, scheme applies to your home.
Right to Buy is an England-only scheme. Scotland abolished its version of Right to Buy in 2016 and Wales did so in 2019. Northern Ireland operates a separate House Sales Scheme with different eligibility criteria and discount levels.
Who qualifies for Right to Buy?
To be eligible to apply under Right to Buy in England you must meet all of the following conditions:
- You are a secure tenant of an English local authority (the property must be your only or principal home).
- The property is self-contained (it has its own kitchen, bathroom and front door).
- You have spent at least three years as a public-sector tenant. This can be across more than one tenancy or more than one public-sector landlord, and the years do not need to be consecutive.
- You do not have a bankruptcy order or debt relief order outstanding against you.
- You are not subject to a court order that requires you to leave your home.
- The property is not exempt from Right to Buy (certain sheltered housing, dwellings above commercial premises, and homes scheduled for demolition are excluded).
- You can buy jointly with up to three family members who have lived in the property as their main home for at least the past twelve months, even if they are not named on the tenancy.
How the discount is calculated
The discount is calculated as a percentage of the property's open-market value at the date of the application, subject to a maximum cash cap that varies by region. The percentage depends on two things: whether the property is a house or a flat, and how long you have been a public-sector tenant.
For houses, you receive a 35% discount after three years of public-sector tenancy, rising by 1 percentage point for every additional year, up to a maximum of 70%.
For flats and maisonettes, you receive a 50% discount after three years, rising by 2 percentage points for each additional year, up to a maximum of 70%.
However, the resulting cash discount cannot exceed the regional cap in force at the time of your application. The caps were reduced from 21 November 2024. Because the government can update these figures, always verify the current cap on GOV.UK before submitting your RTB1 form.
A 'cost floor' rule can further restrict your discount. If the council has spent money buying, building or improving the property within the last fifteen years, and the discounted sale price would fall below that cost, your discount is reduced to ensure the council at least recoups its expenditure.
Right to Buy discount caps: before and after November 2024
The table below compares the maximum cash discount caps that applied between 2012 and 20 November 2024 with the caps that came into force from 21 November 2024. All figures are approximate; confirm the exact current cap on GOV.UK.
| Region | Cap until 20 Nov 2024 | Cap from 21 Nov 2024 |
|---|---|---|
| London | £96,010 | ~£16,000 |
| South East (outside London) | £80,900 | ~£12,000 |
| Rest of England (standard) | £64,000 | ~£9,000 |
Source: GOV.UK. Figures rounded. The exact cap applicable to your application depends on your council area; check the current published table on GOV.UK before applying.
Right to Acquire: the housing association equivalent
Right to Acquire is a separate but related scheme for housing association tenants in England. To qualify you must have been a public-sector tenant for at least three years and your home must have been built or bought by a housing association using public funding after 31 March 1997, or transferred from a council after that date.
The discount under Right to Acquire is a fixed cash amount set by government (currently ranging from £9,000 to £16,000 depending on the region), which is lower than the percentage-based Right to Buy discounts. The application process mirrors Right to Buy: you fill in a Right to Acquire application form, your landlord confirms eligibility and issues an offer notice, and you then arrange finance and conveyancing in the usual way.
If your housing association home transferred from a council before 1997 and your tenancy dates from before that transfer, you may have the Preserved Right to Buy instead, under which the old council-tenant rules and discounts apply. Ask your landlord which scheme covers your property.
The Right to Buy application process
A typical Right to Buy purchase follows these steps from initial application to completion. Timelines vary but the council must respond to your RTB1 within four weeks (or eight weeks if you have been a tenant for under three years).
Submit form RTB1
Download the Right to Buy application form (RTB1) from GOV.UK, complete it in full, and send it to your council landlord. Include details of any joint buyers.
Receive the council's eligibility decision
The council must respond within four weeks to confirm whether you are eligible. If it refuses, it must give written reasons. You can challenge a refusal through the Right to Buy Advisory Service.
Receive the Section 125 offer notice
If you are eligible, the council issues a Section 125 notice. This sets out the property's market value, the discount you are entitled to, the discounted purchase price, and any known structural issues or service charges for flats. You have 12 weeks to accept or reject the offer.
Arrange a mortgage
Most high-street lenders and specialist brokers offer Right to Buy mortgages. Many will treat the discount as your deposit, meaning you may be able to borrow 100% of the discounted purchase price. However, each lender has its own criteria, so compare deals thoroughly. A mortgage broker can help identify lenders that are comfortable with Right to Buy.
Commission a survey
Always instruct an independent surveyor, particularly a Homebuyer Report or full structural survey for older properties. Do not rely solely on the council's valuation. For flats, review the service charge history carefully and ask for details of any planned major works.
Instruct a conveyancer
Appoint a solicitor or licensed conveyancer to carry out searches, review the title and any lease (for flats), raise enquiries with the council, and manage the exchange and completion. Conveyancing on a Right to Buy purchase is broadly similar to a standard purchase but includes checking the discount and repayment clauses.
Exchange and complete
Once all checks are satisfied and your mortgage offer is in place, your conveyancer will arrange exchange of contracts and then completion. On completion you become the legal owner of your former council home.
Selling early triggers a discount repayment
If you sell your Right to Buy property within five years of completing the purchase, you are required to repay a proportion of the discount you received. In the first year you repay the full discount; in years two through five the repayment reduces by 20% per year. Additionally, for up to ten years after purchase, the council has the right of first refusal: you must offer the property back to your former landlord (or another social landlord in the area) at full market value before selling on the open market. These rules apply whether or not prices have changed since you bought.
Costs and ongoing responsibilities to budget for
The discount reduces the purchase price, but buying under Right to Buy still involves significant costs. As an owner you also take on responsibilities the council previously managed. Budget carefully for:
- Conveyancing fees: typically £1,200 to £2,500 plus VAT and disbursements (searches, Land Registry fees).
- Survey costs: from around £400 for a basic Homebuyer Report to £1,000 or more for a full structural survey on an older property.
- Mortgage arrangement and valuation fees: varies by lender, often £500 to £1,500.
- Buildings insurance: required by your mortgage lender from the date of exchange; shop around for competitive premiums.
- Stamp Duty Land Tax (SDLT): payable on the discounted purchase price using the standard residential bands. First-time buyers may qualify for SDLT relief on the first £425,000.
- Repairs and maintenance: once you own the property, all repair costs fall to you. Council properties are often older stock and may need work.
- For flats and maisonettes: annual service charges, ground rent (if applicable), and the risk of large major-works bills. Review the last three years of service charge accounts and ask specifically about any planned repairs to the building fabric, lifts or communal systems.
- Moving and furnishing costs if you are staying put, or if you decide to move after the five-year repayment period.
Mortgages for Right to Buy purchases
A broad range of lenders offer mortgages for Right to Buy, and many will treat the discount as the deposit, allowing you to borrow the full discounted purchase price. This is particularly useful for applicants who have not been able to save a cash deposit. However, 'discount as deposit' lending is at the lender's discretion: each lender applies its own loan-to-value (LTV) limits and affordability criteria.
Because the discounted price is lower than the market value, even a 95% LTV mortgage against the discounted price may represent a relatively low loan compared to the home's true value, which can work in your favour if you later remortgage after the five-year repayment period has passed.
Seek independent mortgage advice. A whole-of-market broker can identify the most suitable lenders and deals, check that your affordability profile meets each lender's criteria, and guide you through the application process. Some brokers specialise in Right to Buy transactions.
Be aware that if the market value of your home falls and you need to sell during the repayment period, you would repay the original discount amount (not a proportion of current value), which could leave you in negative equity on the discounted price.
Policy changes and the future of Right to Buy
The scheme has faced increasing scrutiny due to the long-term reduction in social housing stock. From November 2024 the government cut the maximum discount caps significantly. Further reforms, including giving councils greater flexibility to restrict or opt out of the scheme, have been discussed. Always check GOV.UK for the most recent eligibility rules and discount levels before submitting an application, as the policy position continues to evolve.