If you rent a council or housing association home, you may be able to buy it at a significant discount through the Right to Buy scheme. This government programme has helped millions of tenants become homeowners since 1980. This guide explains how it works, whether you qualify, and what it really costs.
What Is Right to Buy?
Right to Buy is a government scheme that gives secure council and housing association tenants the legal right to buy their home at a discount. The scheme was introduced in 1980 and has since enabled over 2.5 million households to purchase their homes.
Key points:
- You buy your home at below market value — the discount is based on how long you have been a tenant
- The scheme applies to council homes and, through the Right to Acquire scheme, to most housing association homes
- You need a mortgage to buy your home, though the discount often counts as your deposit
- The property must be your main home — you cannot use the scheme to buy a second home or investment property
- The scheme is available in England. Scotland, Wales, and Northern Ireland have different rules
Eligibility
Not every tenant qualifies. 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 tenancy requirement counts time as a public sector tenant. If you moved from one council home to another, or from a council home to a housing association home (or vice versa), the time can be combined.
If you live in a housing association home, you may qualify under Right to Buy if your landlord originally owned the property as a council home before transferring to the housing association. If not, you may qualify under the Right to Acquire scheme instead.
Discount Levels
The discount is the main benefit of Right to Buy. It is based on two factors: 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.
Tip: Property values in London are higher, so the maximum discount is set at a higher level to reflect this. However, even outside London, the discount can be substantial.
How to Apply
The application process is straightforward but requires patience.
Step-by-Step
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Contact your landlord. Write to your council or housing association and express your interest in Right to Buy. 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. This includes the property’s market value, the discount you are entitled to, and any restrictions.
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Independent valuation. Your landlord will arrange an independent valuation of the property. If you disagree with the valuation, you can appeal to the First-tier Tribunal (Property Chamber). The appeal must be made within 3 months of receiving the valuation.
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Find a mortgage. Most high street lenders offer Right to Buy mortgages. You will need to arrange a mortgage in principle before proceeding. The discount acts as your deposit, so you may only need a small deposit of your own.
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Instruct a solicitor. You need a solicitor to handle the legal process. You can use the landlord’s solicitor (free for you) or your own solicitor (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 is one of the most important parts of the process. It determines how much you pay.
How the valuation works:
- Your landlord arranges an independent valuation based on the property’s open market value
- The valuation considers the property’s size, condition, location, and comparable sales in the area
- Any structural defects or major repairs needed are factored in
- The discount is applied to the valuation to give you 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 will arrange its own independent valuation. In many cases, the tribunal’s valuation is higher than the landlord’s, which means you pay more — but it can also go the other way.
Tip: Get your own independent valuation before appealing. A surveyor will charge around £200 to £400 for a basic valuation, and this 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.
What you need:
- A deposit (the discount usually covers this, but some lenders want 5% to 10% of the purchase price from you)
- A mortgage for the remaining amount (typically 75% to 90% loan-to-value)
- A clean credit history (check your credit report before applying)
- Proof of income (payslips, P60, 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) |
In this example, the discount far exceeds the mortgage needed. Some tenants are able to purchase with very small deposits.
Tip: Shop around for the best mortgage rates. Even a 0.5% difference in interest rate 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. This is called clawback.
How clawback works:
| 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. It is important to know which applies to you.
| 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 your home comes with responsibilities that renting does not. Be prepared.
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 can cost £5,000 to £15,000. You need to budget for these
- Service charges: If you buy a flat, you may face annual service charges for maintenance of communal areas. These can increase significantly
- Falling property values: Property values can fall. 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. She 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 £99 more per month as an owner, but she is building equity in a property that will eventually be hers outright. Over 25 years, she will own a property worth potentially £300,000 or more, while a renter would have paid around £165,000 in rent with nothing to show for it.
Sarah’s actions:
- Checked eligibility: 8 years as secure tenant ✓
- Got independent valuation: confirmed at £180,000 ✓
- Compared mortgage rates: found 4.5% fixed for 5 years ✓
- Budgeted for repairs: set aside £100 per month into a maintenance fund ✓
- Checked credit report: score of 720, no issues ✓
- Calculated long-term costs: mortgage payments build equity, rent does not ✓
Tips for Right to Buy
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Check your eligibility first. Contact your landlord and confirm you qualify before getting attached to the idea of buying
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Get an independent valuation. Do not rely solely on the landlord’s valuation. Your own surveyor can provide a second opinion
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Compare mortgage rates. Shop around — do not accept the first mortgage offer. Use a mortgage broker to access the widest range of deals
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Budget for repairs. Set aside at least £100 per month for maintenance and unexpected repairs. Older council properties may need significant work
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Consider how long you will stay. If you might move within 5 years, factor in the clawback provision. It may not be worth buying if you are likely to sell soon
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Get legal advice. A solicitor can explain the legal implications, review the Section 125 notice, and ensure the process runs smoothly
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Check for restrictions. Some properties have planning restrictions or lease conditions that affect ownership. Your solicitor will check this
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Understand service charges. If you are buying a flat, ask for a breakdown of current service charges and any planned major works that could increase costs
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Think long-term. Right to Buy gives you the chance to own your home at a discount. If you plan to stay for 10 years or more, the financial benefits can be substantial
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Do not rush. Take your time. Compare costs. Get surveys. Understand the mortgage. This is the biggest purchase of your life — treat it seriously
Summary
Right to Buy offers secure council and housing association tenants the chance to own their home at a significant discount. The scheme can save you tens of thousands of pounds, but it comes with responsibilities and risks. Check your eligibility, get an independent valuation, compare mortgage rates, budget for repairs, and consider how long you will stay before committing.
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.