If you rent a council or housing association home, you may be entitled to buy it at a significant discount through the Right to Buy scheme. Since it was introduced in 1980, the programme has helped millions of secure tenants become homeowners, often at a price well below the property’s true market value — and for many, that discount is the difference between owning a home and renting for life.
But Right to Buy is not a free giveaway. The discount is generous, yet it is governed by strict eligibility rules, capped at certain levels, and partly repayable if you sell within five years. You also take on all the responsibilities of ownership, from repairs to buildings insurance, which can surprise tenants who have never had to think about them. This guide walks through how the scheme works, whether you qualify, how the discount is calculated, what the process involves, and what homeownership actually costs.
What Is Right to Buy?
Right to Buy is a government scheme giving secure council and housing association tenants the legal right to buy their home at a discount. Introduced in 1980, it has since enabled over 2.5 million households in England to purchase their homes. The scheme applies to council homes and, through the Right to Acquire scheme, to most housing association homes. You will need a mortgage, though the discount often counts as your deposit, and the property must be your only or main home — you cannot use the scheme for a second property. Finally, it is an England-only scheme: Scotland, Wales, and Northern Ireland have their own, different rules.
Eligibility
Not every tenant qualifies — the rules are strict, and you must meet all of the following criteria:
| Criteria | Requirement |
|---|---|
| Landlord | Council, registered housing association, or NHS foundation trust |
| Tenancy type | Secure tenancy (council) or qualifying housing association tenancy |
| Tenancy length | At least 2 years of continuous public sector tenancy (does not need to be the same property) |
| Property use | Your only or main home |
| Eviction | Not subject to current eviction proceedings |
| Debt | No outstanding council house rent arrears or other housing-related debt |
Important: The 2-year requirement counts all your time as a public sector tenant, so time in different council or housing association homes can be combined.
In a housing association home, you may qualify under Right to Buy if your landlord originally owned it as a council home; otherwise the separate Right to Acquire scheme may apply.
Discount Levels
The discount is based on the type of property and how long you have been a secure tenant.
England Discount Levels (2024/25)
| Tenancy Length | House Discount | Flat Discount |
|---|---|---|
| 3 to 5 years | 35% | 50% |
| 6 to 9 years | 40% | 56% |
| 10 to 14 years | 50% | 62% |
| 15 to 19 years | 56% | 69% |
| 20 to 24 years | 60% | 73% |
| 25 to 29 years | 64% | 77% |
| 30 years or more | 70% | 82% |
Maximum discounts (2024/25):
- London: £116,200 maximum
- Outside London: £92,700 maximum
The discount is calculated on the property’s market value. For example, if your home is worth £150,000 and you have been a tenant for 10 years, the discount for a house would be £75,000 (50%), meaning you pay £75,000. Property values are higher in London, so its maximum discount is set higher — but even outside London the discount can be substantial.
How to Apply
The application process is fairly straightforward but requires patience.
Step-by-Step
-
Contact your landlord. Write to your council or housing association expressing interest. They must respond within 4 weeks with a decision on whether you qualify.
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Receive your Section 125 notice. If you qualify, your landlord provides a Section 125 notice setting out the market value, your discount, and any restrictions.
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Independent valuation. Your landlord arranges an independent valuation. If you disagree, you can appeal to the First-tier Tribunal (Property Chamber) within 3 months of receiving it.
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Find a mortgage. Most high street lenders offer Right to Buy mortgages, so arrange one in principle before proceeding — the discount acts as your deposit, often leaving only a small deposit of your own.
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Instruct a solicitor. You can use the landlord’s solicitor (free for you) or your own (at your cost).
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Complete the purchase. Once the mortgage is in place and legal checks are done, you complete the purchase and become the owner.
Timeline: The process typically takes 8 to 12 weeks from application to completion.
Valuation
The valuation determines the figure the discount is applied to, and therefore what you pay. Your landlord arranges an independent valuation based on the property’s open market value, considering its size, condition, location, and comparable sales; any structural defects or major repair needs are factored in, and the discount is then applied to give the purchase price.
If you disagree with the valuation:
You can appeal to the First-tier Tribunal (Property Chamber) within 3 months. The appeal costs a small fee (around £200 to £500), and the tribunal arranges its own independent valuation, which in many cases comes out higher than the landlord’s — meaning you pay more — though it can also go the other way, so it is not a one-way bet.
Tip: Get your own independent valuation before appealing — a surveyor will charge around £200 to £400 for a basic valuation, which can help you decide whether to challenge the landlord’s figure.
Mortgage for Right to Buy
Most high street banks and building societies offer Right to Buy mortgages. The key advantage is that your discount counts as your deposit, which can dramatically reduce the cash you need to bring to the table. You will typically need a deposit (some lenders want 5% to 10% of the purchase price from you, though the discount often covers this), a mortgage for the remaining sum (typically 75% to 90% loan-to-value), a clean credit history, and proof of income such as payslips, P60 or bank statements.
Example:
| Item | Amount |
|---|---|
| Property value | £120,000 |
| Discount (60%) | £72,000 |
| Purchase price | £48,000 |
| Mortgage needed | £43,200 (90% of purchase price) |
| Your deposit | £4,800 (5% of purchase price) |
Here the discount far exceeds the mortgage needed, and some tenants purchase with very small deposits of their own.
Tip: Shop around for the best rates — even a 0.5% difference can save you thousands over the life of the mortgage.
Clawback: Selling Within 5 Years
If you sell your Right to Buy property within 5 years of purchase, you must repay part of the discount under clawback rules — an aspect of the scheme most people discover only after they have committed.
| Year of Sale | Discount Repayment |
|---|---|
| Year 1 | 100% of discount |
| Year 2 | 80% of discount |
| Year 3 | 60% of discount |
| Year 4 | 40% of discount |
| Year 5 | 20% of discount |
| Year 6 or later | 0% |
Example: If you bought your home with an £80,000 discount and sold it in Year 3, you would need to repay £48,000 (60% of £80,000) to your landlord.
Exceptions to clawback:
- If you sell to a family member who has lived with you for at least 12 months
- If you sell to a registered social landlord
- If you transfer the property to a member of your family
Tip: If you think you might move within 5 years, Right to Buy may not be the right choice for you. The clawback provision is strictly enforced.
Right to Acquire vs Right to Buy
These are two different schemes, and which one applies to you matters because the discounts are very different.
| Feature | Right to Buy | Right to Acquire |
|---|---|---|
| Applies to | Council tenants | Housing association tenants |
| Property history | Property was originally council-owned | Property built or bought with public funds after 1997 |
| Tenancy type | Secure tenancy | Secure or Assured tenancy |
| Discount | Up to 70% (house) or 82% (flat) | £16,000 (or higher in high-cost areas) |
| Tenancy length | 2+ years | 2+ years (can be different landlords) |
If you live in a housing association home, check whether you qualify for Right to Buy (if the property was originally council-owned) or Right to Acquire (if it was built or bought with public funding after 1997) — the discount under Right to Buy is typically much larger.
Risks and Responsibilities
Buying brings responsibilities renting does not, and a mortgage is a bigger commitment.
You are responsible for:
- All repairs and maintenance (roof, plumbing, electrics, boiler, windows)
- Buildings insurance (if you own a house) or service charges and buildings insurance (if you own a flat)
- Council tax (you may already be paying this as a tenant, so no change)
- Any ground rent or service charges that apply
The risks:
- Repossession: If you cannot keep up with mortgage payments, the lender can repossess your home
- Repair costs: A new boiler can cost £2,000 to £4,000; a new roof £5,000 to £15,000
- Service charges: For a flat, annual service charges on communal areas can increase significantly
- Falling property values: If you need to sell in a falling market, you may get less than you paid
Tip: Before buying, get a full building survey (not just a mortgage valuation). This will identify any structural issues and help you budget for future repairs.
Worked Example: Sarah’s Right to Buy Purchase
Sarah is a council tenant in Manchester who has been a secure tenant for 8 years. Her property is valued at £180,000.
The numbers:
| Item | Amount |
|---|---|
| Property value | £180,000 |
| Discount (40% for 8 years) | £72,000 |
| Purchase price | £108,000 |
| Mortgage (90% LTV) | £97,200 |
| Deposit (10%) | £10,800 |
| Mortgage term | 25 years |
| Interest rate (fixed for 5 years) | 4.5% |
| Monthly mortgage payment | £541 |
Monthly costs comparison:
| Cost | As Tenant | As Owner |
|---|---|---|
| Rent / Mortgage | £550 (rent) | £541 (mortgage) |
| Repairs (average) | £0 | £83 (avg £1,000/year) |
| Buildings insurance | £0 | £25 (avg £300/year) |
| Total | £550 | £649 |
Sarah pays around £99 more per month as an owner, but she builds equity in a property that will eventually be hers outright — worth potentially £300,000 or more after 25 years, while a renter would have paid roughly £165,000 in rent with nothing to show for it.
A Final Word
Right to Buy can be an extraordinary opportunity to own a home at a fraction of its market value. But it deserves care rather than haste — check your eligibility first, get an independent valuation, compare mortgage rates carefully, budget honestly for repairs and insurance, and consider how long you plan to stay, because the clawback rules make early selling expensive.
For more information, visit GOV.UK Right to Buy, Shelter, or MoneyHelper.
This guide is for informational purposes only and does not constitute financial or legal advice. Consult a qualified solicitor or financial adviser for advice specific to your circumstances.