What is Right to Buy?
Right to Buy is a government scheme that gives most council tenants the legal right to buy their council home at a discount. The scheme has helped over 2 million families become homeowners since its introduction, offering significant discounts based on how long you've been a council tenant.
2025 Key Benefits
Legal right for qualifying tenants | Discounts up to 70% for houses, 80% for flats | Maximum discounts £87,200 (England) | Established mortgage support | No stamp duty liability
Eligibility Requirements
3+ Years Tenancy
Must have been a public sector tenant for at least 3 years (can include housing association time).
Council/Housing Association Property
Property must be owned by local authority or qualifying housing association.
Secure Tenancy
Must have a secure tenancy, not temporary or introductory tenancy.
No Outstanding Debts
Must have no significant rent arrears or other debts to the landlord.
Qualifying Tenancy Time
Time Calculation
Your qualifying time includes periods as tenant of: local councils, housing associations (pre-1989), armed forces accommodation, NHS housing, police housing, and some other public sector accommodation. Time doesn't have to be continuous.
Who Cannot Use Right to Buy
- Recent housing association tenants: Properties transferred from councils after 1989 may not qualify
- Temporary tenants: Those with introductory or assured shorthold tenancies
- Shared ownership tenants: Already part-owners cannot use Right to Buy
- Bankruptcy proceedings: Tenants subject to bankruptcy orders
- Possession proceedings: Where landlord is seeking possession for rent arrears or breach of tenancy
Discount Calculation
How Discounts Work
| Years as Tenant | House Discount | Flat Discount |
|---|---|---|
| 3-5 years | 35% + 1% per year | 50% + 2% per year |
| 5+ years | 35% + 1% per additional year | 50% + 2% per additional year |
| Maximum discount | 70% (35 years) | 80% (15 years) |
| Cash cap (England) | £87,200 | £87,200 |
Regional Variations
Maximum Discount Caps 2025
England: £87,200 (most areas), £116,200 (London boroughs)
Wales: £16,000 for houses, £24,000 for flats
Scotland: Right to Buy ended for new tenancies from 2016
Northern Ireland: £24,000 cap applies
Discount Examples
House: 10 Years Tenancy
Market value: £200,000
Discount: 45% (£90,000)
Capped at: £87,200
Purchase price: £112,800
Flat: 8 Years Tenancy
Market value: £150,000
Discount: 66% (£99,000)
Capped at: £87,200
Purchase price: £62,800
Application Process
Step-by-Step Guide
Right to Buy Application
Submit RTB1 Form
Complete Right to Buy application form and send to your landlord.
Landlord Assessment (4 weeks)
Landlord checks eligibility and either accepts or rejects application.
Property Valuation (12 weeks)
Independent valuation determines market value and discount calculation.
Section 125 Notice (RTB2)
Formal offer stating purchase price, discount, and terms.
Accept Offer (12 weeks)
You have 12 weeks to accept offer and arrange mortgage/funding.
Required Documentation
Personal Documentation
Proof of identity, tenancy agreement, proof of address, bank statements.
Tenancy History
Details of all public sector tenancies, dates, and landlord information.
Financial Information
Income proof, mortgage agreement in principle, deposit confirmation.
Joint Applications
If applying jointly, all applicants' documentation and eligibility proof.
Calculate Your Right to Buy Discount
Work out your potential discount and purchase price based on your tenancy history.
Right to Buy CalculatorFinancing Your Purchase
Mortgage Options
Right to Buy Mortgage Support
Most major lenders offer Right to Buy mortgages. The government discount counts as part of your deposit, so you typically need smaller additional deposits. Some lenders offer preferential rates for Right to Buy purchases.
Deposit Requirements
Typical Deposit Scenario
Property value: £180,000
Right to Buy discount (40%): £72,000
Purchase price: £108,000
Required deposit (5%): £5,400
Mortgage needed: £102,600
Additional Costs
- Valuation fees: Usually paid by the council, but you may need separate mortgage valuation
- Legal fees: Solicitor costs for conveyancing (typically £800-1,500)
- Survey costs: Optional but recommended structural survey (£400-800)
- Mortgage arrangement fees: Lender fees for setting up mortgage
- No stamp duty: Right to Buy purchases are exempt from stamp duty
Restrictions and Obligations
Discount Repayment (Clawback)
5-Year Clawback Period
If you sell within 5 years, you must repay some or all of the discount. Year 1: 100% repayment, reducing by 20% each year. After 5 years, no repayment required.
Clawback Calculation
| Year of Sale | Discount Repayment | Example (£50,000 discount) |
|---|---|---|
| Year 1 | 100% | £50,000 |
| Year 2 | 80% | £40,000 |
| Year 3 | 60% | £30,000 |
| Year 4 | 40% | £20,000 |
| Year 5 | 20% | £10,000 |
| After 5 years | 0% | £0 |
Other Restrictions
Right of First Refusal
Council has right to buy back the property if you want to sell within 10 years in some rural areas.
Covenant Restrictions
Some properties have restrictions on use, alterations, or future development.
Leasehold Obligations
Flats become leasehold with ongoing service charges and ground rent obligations.
Maintenance Responsibilities
You become responsible for all repairs and maintenance after purchase.
Leasehold vs Freehold
Property Type Differences
| Property Type | Ownership Type | Additional Costs | Responsibilities |
|---|---|---|---|
| House | Usually Freehold | None | All maintenance and repairs |
| Flat | Leasehold (125+ years) | Service charge, ground rent | Internal maintenance only |
| Maisonette | Usually Leasehold | Service charge, ground rent | Internal maintenance, shared areas via service charge |
Leasehold Considerations
Ongoing Leasehold Costs
Flats purchased under Right to Buy come with service charges for building maintenance, insurance, and communal areas. These costs continue indefinitely and can increase over time. Ground rent is typically nominal (often £10-50 per year).
Common Challenges and Solutions
Potential Issues
Property Condition
Some council properties need significant repairs. Get a full survey before purchase.
Service Charge Shock
For flats, service charges can be substantial and variable year to year.
Mortgage Difficulties
Some ex-council properties can be harder to mortgage due to construction type or location.
Resale Challenges
Ex-council properties may have lower resale values or be harder to sell.
Due Diligence Checklist
- Building survey: Professional inspection of property condition and repair needs
- Service charge history: For flats, review 3-5 years of service charge accounts
- Planned works: Check for any major building works planned that could increase charges
- Lease terms: Understand all obligations and restrictions in the lease
- Insurance arrangements: Understand building insurance requirements and costs
- Local area research: Consider future development plans and area regeneration
Alternatives to Right to Buy
Other Housing Options
Rent to Homebuy
Some councils offer alternative schemes allowing gradual purchase of your home.
Shared Ownership
Buy a share of a property and pay rent on the remainder.
Help to Buy
Government assistance for purchasing new build properties.
Open Market Purchase
Buy any property on the open market with first-time buyer assistance.
Staying as a Tenant
Benefits of Remaining a Council Tenant
Secure tenancy rights, no repair responsibilities, potential for rehousing if circumstances change, protection from major housing costs, right to improvements, and succession rights for family members.
Professional Advice
When to Seek Help
Housing Solicitor
Complex lease terms, covenant restrictions, or disputes with the council.
Independent Financial Advisor
Mortgage options, affordability assessment, and long-term financial planning.
Chartered Surveyor
Property condition assessment and valuation verification.
Housing Rights Advisor
Understanding rights, obligations, and alternatives to purchase.
Free Advice Available
Many councils offer free Right to Buy advice sessions. Shelter, Citizens Advice, and other housing charities provide free guidance on your rights and options. Take advantage of these services before making decisions.
Making the Decision
Key Considerations
Decision Framework
Financial Assessment
Compare total costs of ownership vs. continuing to rent over 10+ years.
Property Condition
Assess current condition and likely future repair/improvement costs.
Future Plans
Consider whether you want to stay in the property long-term.
Family Impact
Think about inheritance benefits and family security from ownership.
No Pressure Decision
You're never obligated to buy your council home. Right to Buy is a right, not a requirement. Take time to consider all factors and seek independent advice. Your tenancy rights remain protected if you choose not to purchase.