Right to Buy

If you are renting accommodation that’s owned by the council and dream of owning your home, you may be entitled to buy it using the Right to Buy scheme. Under this scheme, you can benefit from a significant discount on the property price to help you get a foot on the property ladder.

At Trinity Finance, we can check your eligibility for the scheme and advise you on the application process. Our mortgage brokers can then search for a competitive mortgage deal for you to finance the rest of your purchase. This includes deals aimed specifically at borrowers using the Right to Buy scheme and those where lenders are happy to accept the discount in place of a deposit.

In this guide, we’ll explain what Right to Buy is and how it works, the discount you can expect, the eligibility criteria, how to apply for the scheme and more.

Right to Buy is a scheme that enables most council tenants and some housing association tenants to buy their council property at a discounted rate. The scheme operates in England and Northern Ireland, although different rules apply for the latter. This guide focuses on the rules that apply to the scheme in England. Right to Buy no longer runs in Scotland or Wales, having been abolished in 2016  in Scotland and in 2019 in Wales to safeguard the amount of social housing available.

The scheme has been in place for over 40 years, having been introduced by Margaret Thatcher in the Housing Act 1980. It was introduced to help tenants get a foot on the property ladder by enabling them to buy the property they lived in at a significant discount. The scheme made a considerable mark in the UK’s housing policy and since its implementation, over 2 million tenants have been able to buy their homes through the scheme.

In the early days of the scheme, it was available to tenants who had lived in their homes for 3 years or more, enabling them to buy the property with a minimum discount of 33%. This discount was capped at £50,000. If they then sold the property within 5 years of buying it, they had to repay the discount to the local authority. Over the years, the eligibility criteria changed at various times concerning qualifying tenure periods, resale terms and the discounts offered.

In 2012, the government pledged to replace each home sold with a new property. This hasn’t yet been achieved, with the replacement properties being significantly lower than the number sold through the scheme. To protect their social housing stock, both Scotland and Wales later ended the use of Right to Buy. In turn, Northern Ireland ended the scheme’s use for housing association tenants in 2022. 

Under this scheme, council tenants and some housing association tenants can buy their properties at a heavily discounted price. A mortgage or other type of finance has to be arranged to cover the remaining value. Some lenders accept the Right to Buy discount in place of a deposit, which is helpful when the high cost of living makes it hard to save an adequate sum, if anything at all.

Other costs have to be budgeted for, too, just as they do for any homeowner. We’ll explain these in more detail later on but they can include valuation and survey fees, legal costs, stamp duty and home insurance. Specific eligibility criteria have to be met for use of the scheme and conditions apply if you decide to sell your property in the future.

If you wish to buy your home via this scheme, you need to meet the following criteria to apply:

• You’re a secure tenant.
• The property is self-contained.
• The property is your main or only home.
• You’ve had a public sector landlord, such as a council, housing association or NHS trust, for at least 3 years. These do not need to be consecutive years.

Under this scheme, you can make a joint application with someone you share your tenancy with. You can also apply with up to three family members as long as they have lived with you for the past 12 months. They don’t need to have shared the tenancy with you.

What if your home used to be council-owned?

If you were living in your home as a secure council tenant and it was sold to another landlord, such as a housing association, you may have a Preserved Right to Buy. Your landlord will be able to confirm this with you.

The discount you are eligible for is based on:

• Whether you’re buying a flat or a house
• Your home’s value
• The location of your home
• How long you have been a tenant with a public sector landlord

For the last point, when you’re buying the property with another person, the years of the person who has been a public sector tenant for the longest period are taken into account.

Discounts for houses

As a public sector tenant for 3 to 5 years, you’re entitled to a 35% discount on the property’s market value up to the maximum discount mentioned below. After 5 years, this discount increases by 1% for each additional year that you’ve been a public sector tenant. This applies up to the maximum discount amount.

Discounts for flats

As a public sector tenant for 3 to 5 years, you can benefit from a 50% discount on the flat’s market value up to the maximum amount detailed below. After 5 years, the discount increases by 2% for each additional year that you’ve been a public sector tenant. This applies up to the maximum discount amount.

The maximum discount available

On 21^st November 2024, Right to Buy discount changes were put in place, significantly reducing the maximum discount to between £16,000 and £38,000, depending on the location of the property. This decision was made to slow the rate at which council homes are being sold and protect the stock of social housing. Tenants can still benefit from a discount when buying their homes but this reduction ensures that an affordable housing supply is maintained. The maximum discount you can receive is whichever is lower of the following:

• 70% of your property’s value
• The maximum discount for your region

The regional discounts are detailed in this table:

If you applied to buy your home before 21^st November 2024, you can benefit from whichever is the lower of the following:

• 70% of your home’s value
• £136,400 if your home is located in a London borough
• £102,400 if your home is outside London

Exceptions to the discount calculations

If your landlord has spent funds building your home or maintaining it, the discount that you’re offered may be reduced. The discount amount that you receive will depend on how much your landlord has spent on your home and when you applied to buy it. Should the funds spent by your landlord exceed the market value of your home, you won’t be entitled to any discount.

When applying to buy your home after 21^st November 2024:

Your discount will be reduced if your landlord has spent funds building or maintaining your home in the last 30 years. The discount amount you receive does not depend on when your home was built or when your landlord purchased it.

When applying to buy your home before 21^st November 2024:

Your discount will be reduced if your landlord has spent funds building or maintaining your home:

• In the last 10 years — if your landlord built or acquired your home before 2^nd April 2012
• In the last 15 years — if your landlord acquired your home after 2^nd April 2012 or if you’re buying it with the Preserved Right to Buy.

Also, if you’ve previously purchased a property using the Right to Buy scheme, the discount you received then will be deducted from any new discount you may be entitled to.

You can apply for this scheme using the online RTB1 application form, which you need to save, print out and send to your landlord. Your landlord needs to reply to you within 4 weeks to confirm or reject your Right to Buy the property. If you’ve been renting from your landlord for less than 3 years, they have 8 weeks to reply to you. Your landlord needs to provide you with a reason if they decline your application. If the reason given is that the property is suitable for accommodating elderly people, you can appeal to a tribunal. This must be done within 56 days of the landlord rejecting your application.

If your landlord agrees to your Right to Buy, they need to send you an offer using a Section 125 Notice. This must be within 8 weeks for a freehold property or 12 weeks for a leasehold property. The detailed offer will include:

• The price your landlord wishes you to pay and how this was calculated
• The discount you’re entitled to and how this was calculated
• A description of the property as well as any land that’s included in the price
• A description of any known structural defects
• Estimates of the service charges that will be due in the first 5 years if you’re buying a leasehold property

Responding to your landlord’s offer

Once you’ve received the offer, you need to advise your landlord of your decision to buy in writing within 12 weeks. If your landlord doesn’t hear from you within this time frame, they will send you a reminder. At this point, you will have 28 days to reply — if you don’t, your landlord will assume that you no longer wish to buy the property and your application won’t proceed any further. If you decide not to proceed with the purchase, you can simply continue renting the property as normal.

What happens if you don’t agree with the offer?

When you receive the offer, you may think that the price your landlord is asking for is too high. If this is the case, you need to notify your landlord in writing within 3 months and request an independent valuation. This will be carried out by a district valuer who will inspect your home to assess the property’s value. You will then have 12 weeks to either accept the valuation or withdraw from the sale.

What happens if your landlord causes a delay?

Just as you have to adhere to a set time frame, so does your landlord. If they don’t respond within the appropriate time, you may be eligible for a reduction in the property price. You will need to complete an ‘initial notice of delay’ form and send it to them. Your landlord will then have 1 month to proceed with the sale or issue you with a counter notice. The latter will either state that they have already responded or provide an explanation as to why the sale can’t proceed any faster.

If you don’t receive a response from your landlord within this time, you can complete an ‘operative notice of delay’ form. Any rent you pay during the delayed period may be deducted from the purchase price and this may be repeated if your landlord causes further delays.

You’ll need to arrange the finance for buying your home and this is likely to be a mortgage. Our mortgage brokers can check your affordability and discuss your mortgage preferences with you. With unrestricted access to the market, our brokers can search for the best Right to Buy mortgage deal to suit your needs and circumstances.

As mentioned earlier, some lenders offer deals that are aimed specifically at those using the Right to Buy scheme and our brokers will provide you with details of these deals. Normally, you have to pay a deposit when applying for a mortgage but some lenders will accept your Right to Buy discount in place of one. If you haven’t been able to save a deposit, our mortgage experts can approach these lenders on your behalf.

To begin your mortgage application process, give us a call on 01322 907 000 or send us an email at info@trinityfinance.co.uk. You will be provided with a dedicated Right to Buy mortgage broker who will look after you throughout the entire process, making it as straightforward and stress-free as possible for you. If you prefer, send an enquiry via our contact form and one of our mortgage experts will get back to you as quickly as possible.

Before you proceed with buying your home, you need to include various costs in your calculations. Your mortgage costs, for example, may include a mortgage arrangement fee and a valuation fee. Some lenders offer incentives with these for first-time buyers so our mortgage brokers will check this first. The other costs you need to budget for may include:

• Your solicitor’s fees
• A survey fee
• Stamp duty
• Buildings and contents insurance

You may also wish to take out income protection to ensure that your mortgage payments can still be made should you be unable to work in the future. Life insurance is also a consideration as this will provide security that your mortgage will be repaid in the event of your death. This gives you peace of mind that the financial burden won’t be passed on to your loved ones. Critical illness cover is another consideration, providing a lump sum on diagnosis to help cover major expenses, such as your mortgage. Our mortgage and protection brokers can talk through the protection options with you, helping you to choose the right solution for your needs, budget, circumstances and future plans.

As a homeowner, as well as budgeting for your monthly mortgage repayments, you’ll need to bear in mind that you’ll be responsible for any repair and maintenance costs. If you’re currently receiving housing benefits, you won’t be entitled to them once you own the property.

You can sell your home whenever you wish but there are some conditions you need to adhere to. If you choose to sell within 10 years of buying your home through the scheme, you must offer it to your previous landlord or another social landlord within the area. If the landlord agrees to buy it, this should be for the full market price as agreed between you. If you and the landlord cannot agree on the price, a valuation will be carried out by a district valuer and this will determine the price. If the landlord doesn’t confirm their intent to buy the property within 8 weeks, you can sell it on the open market.

Repayment of your Right to Buy discount

The other stipulation is that you must repay some or all of the discount you received if you decide to sell the property within 5 years. If you sell it within the first year of owning it, you have to repay the entire discount. If you sell it within the second year, you have to repay 80% of the discount. In the third year, this is reduced to 60% of the discount, the fourth year is 40% of the discount and the fifth year is 20% of the discount. It’s important to note that this is based on the market value at the time you sell the property. This means that if your property’s value has increased since you bought it, the amount you have to repay will be affected.

You may prefer to transfer ownership of your home to a family member. If so, you need to agree on this with the landlord and then instruct your solicitor to proceed with the arrangement. In this instance, you may not have to repay any of the discount you received.

There are various benefits to using the Right to Buy scheme:

• Home ownership becomes affordable. With the substantial discount that’s offered through the scheme, making the switch from being a tenant to a homeowner suddenly becomes much more affordable.
• You have more security. As a tenant, there’s always a possibility that your tenancy may be terminated by the landlord. As a homeowner, however, that is no longer a concern, giving you peace of mind that you don’t need to worry about housing.
• Some lenders allow you to use your discount as a deposit. If you’ve been unable to save a deposit, there are mortgage lenders willing to accept your discount in place of a deposit. This removes another financial obstacle that stands in the way of so many people buying a home.
• You have an asset. Once you own your home, you have an asset. With each mortgage repayment, you’ll increase the equity you have and, hopefully, the property will also increase in value over time.
• You can make the changes you want to. As a tenant, you’re restricted in what you can do with the property and have to seek the landlord’s permission. As a homeowner, you can carry out improvements as you see fit.

There are also drawbacks to consider before using the scheme:

• You need to secure a mortgage. Although your mortgage loan will be significantly lower than it would be if you were not buying via the scheme, it’s a long-term financial commitment. You need to ensure that you can comfortably afford to make the repayments and consider the risks should your circumstances change in the future.
• Ongoing costs. As well as the monthly mortgage payments, there are other continuing costs to consider once you’re a homeowner. These include insurance payments, maintenance and repair costs and service charges if you buy a leasehold property. If you don’t already pay council tax or utility bills as a tenant, be aware that you’ll be responsible for these as well.
• Conditions may apply when selling the property in future. There’s nothing to stop you from selling your home; however, you must offer it to your previous landlord (or another social landlord) first if you choose to sell it within 10 years. If you sell it within 5 years of being the owner, you must repay some or all of the deposit, depending on how many years you’ve owned it for at that point.
• Less availability of social housing. Buying the council property you live in removes its availability from the pool of social housing. Whilst the government had committed to replacing each sale with a new property, this hasn’t been the case in practice.

The government held a consultation regarding proposed reforms to Right to Buy that would set new limits in a bid to reduce the rate at which social housing is decreasing. It published its feedback in July 2025 and this included the following proposals:

• Council tenants need to have lived in their homes for a minimum of 10 years, rather than 3 years, to be eligible for the scheme.
• Use of the scheme will be restricted so that existing property owners will only be able to use the Right to Buy again in exceptional circumstances, such as being victims of domestic violence. This will also apply to anyone else who has previously taken advantage of the scheme.
• Social housing that has been newly built in England will be exempt from the scheme for 35 years.
• The discounts available via the scheme will begin at 5% after 10 years. This will gradually increase to a maximum Right to Buy discount of 15%.
• When property owners wish to sell their homes, first refusal must always be given to the council, not just within 10 years of buying their homes through the scheme.
• When selling their homes, property owners will have to repay some or all of the discount they received if selling their property within 10 years of ownership, rather than 5 years.
• Councils will be able to retain 100% of the sale receipts. These can be used alongside grant funding to supply new homes.

The need for these proposed changes

These proposals aim to implement a more sustainable system. The Right to Buy will still enable council tenants to buy their homes but the changes to the scheme will also provide additional support to councils to replace those properties.

This is essential as the scheme has led to the rapid reduction of social housing that has been available since its inception. Council homes have been bought at a much faster rate than they have been replaced. The discounts often mean that properties are being sold for less than it costs to construct replacement property, which isn’t financially viable for councils.

Over 1 million people are on council housing waiting lists and over 100,000 households are in temporary accommodation. The lack of social housing has forced lower-income households into the private rental sector. This, in turn, has increased the demand and rents in that sector as well as the cost of housing benefits.

If you want to own your home and meet the qualifying criteria, then using the Right to Buy can make financial sense due to the discount you’ll receive. If the mortgage lender agrees, you may also be able to use the discount in place of a deposit. Being a homeowner gives you a valuable asset and the ability to make changes to your home that you can’t as a tenant.

Consider the costs

However, you need to consider the financial commitment, with ongoing costs that you don’t have to worry about as a tenant. A mortgage is a huge loan to take on over a long term so you need to ensure that you can afford to keep up the monthly payments. You may already have contents insurance as a tenant but you’ll need to insure the property too with buildings insurance. Maintenance of the property and any repairs will also become your responsibility so you’ll need to allow for this within your budget. If you’re buying a flat, you’ll need to pay a service charge as your contribution towards the upkeep of the building and communal areas.

If you normally receive housing benefit, you’ll no longer be able to claim it once you own your home. You may, however, still be entitled to claim other benefits.

Safeguard your finances

It’s also worth considering taking out some form of financial protection. For example, income protection can provide you with a regular income in the event that you’re unable to work due to an illness or injury.

Get expert advice

To help you make the right decision, speak with a mortgage broker. Right to Buy has both pros and cons that you need to weigh up. Our brokers can discuss these with you as well as your future plans, offering impartial advice on the scheme and the alternatives available.

If you’re not sure that Right to Buy is the best option for you, there are alternatives to consider. For example, you can take advantage of the government-backed shared ownership or First Homes schemes. Or you can ask a family member or a close friend to help you out by agreeing to a guarantor mortgage.

Shared ownership

Shared ownership enables you to buy a share of a property – usually between 25% and 75% – and pay rent at a discounted rate on the remaining share. As you’re not buying the property outright, your mortgage loan will be smaller and, therefore, more affordable. If you decide to increase your share of the property later on, you can do so via a process called staircasing.

Guarantor mortgage

A guarantor mortgage enables you to overcome affordability issues, such as having a low income and a low deposit or none at all. It also allows you to get over other hurdles, such as having a low credit score, a lack of credit history or a bad credit rating. With this type of mortgage, the person who agrees to be your guarantor becomes legally responsible for making your mortgage repayments if you’re unable to make them. They’re not named on the property deeds so you can still benefit from having sole ownership of your home.

First Homes scheme

The First Homes scheme enables you to get a foot on the property ladder with a substantial discount of at least 30% on the price of a newly built property compared with its market value. This means that you can pay a lower deposit amount and take out a smaller mortgage, significantly improving your affordability. You need to meet the scheme’s criteria and note the property price caps set by local councils.

Our mortgage brokers are here to provide you with impartial advice on the Right to Buy scheme to help you decide if it’s right for you. They can check your affordability for a mortgage and search for the most competitive deals to suit your needs. This includes those where lenders will accept your Right to Buy discount as a deposit.

At Trinity Finance, we can also help you with other aspects of the home-buying process. This includes recommending a solicitor if you don’t have one, arranging your buildings and contents insurance and putting mortgage protection in place. Whatever your needs, just give us a call on 01322 907 000 for a professional and tailored service. If it’s out of office hours, simply send us an email at info@trinityfinance.co.uk or an enquiry via our contact form. A Right to Buy mortgage broker from our team of experts will reply to you as quickly as possible.