Right to Buy in 2026: Maximum Discounts and Eligibility

Right to Buy is one of the most significant housing policy tools available to eligible council tenants in England. Introduced at scale under Margaret Thatcher's government in 1980, it has enabled millions of tenants to purchase their council home at a substantial discount. In 2026, the scheme remains available — though its reach has been curtailed in Scotland (abolished 2016) and Wales (effectively abolished 2019).

This guide covers the current discount levels, eligibility rules, how to apply, and what happens if you sell the property afterwards.

Current Maximum Discounts (2025/26)

The maximum discounts are reviewed annually in line with the consumer prices index and were set at the following levels for 2025/26:

These figures represent the absolute cap on the discount you can receive, regardless of how long you have been a tenant or how large the discount percentage calculates to. The discount cannot exceed the maximum, and it also cannot exceed 70% of the property's market value.

How the Discount Percentage Is Calculated

The discount percentage depends on whether you are buying a house or a flat, and on how long you have been a public sector tenant.

Houses

• Base discount: 35% after 3 years of qualifying tenancy.
• Additional discount: 1% for each additional complete year beyond 3 years.
• Maximum discount percentage: 70%.

To reach the 70% maximum, you need 35 years of qualifying tenancy (35% base + 35 additional years × 1% = 70%).

Flats

• Base discount: 50% after 3 years of qualifying tenancy.
• Additional discount: 2% for each additional complete year beyond 3 years.
• Maximum discount percentage: 70%.

To reach the 70% maximum, you need 13 years of qualifying tenancy (50% base + 10 additional years × 2% = 70%).

Calculating Your Discount: Examples

Example 1: House, 10 years' tenancy, property value £180,000

• Discount percentage: 35% + (7 × 1%) = 42%
• Discount amount: 42% × £180,000 = £75,600
• Purchase price: £180,000 − £75,600 = £104,400

Example 2: Flat, 8 years' tenancy, property value £220,000

• Discount percentage: 50% + (5 × 2%) = 60%
• Discount amount: 60% × £220,000 = £132,000
• Maximum discount applies: £96,010 (outside London)
• Purchase price: £220,000 − £96,010 = £123,990

Example 3: Flat in London, 15 years' tenancy, property value £350,000

• Discount percentage: 50% + (12 × 2%) = 74% → capped at 70%
• Discount amount (70%): £245,000
• Maximum discount applies: £127,940
• Purchase price: £350,000 − £127,940 = £222,060

Eligibility Criteria

To exercise the Right to Buy in 2026, you must meet all of the following conditions:

1. Secure tenancy: You must be a secure tenant of a council (local authority) property, or hold a preserved Right to Buy from a housing association property that was formerly council-owned.

2. Three-year qualifying tenancy: You must have been a public sector tenant for at least three years in total. This does not have to be with the same landlord or in the same property. Time as a council tenant, housing association tenant (where Right to Buy is preserved), or military service family accommodation counts.

3. Main home: The property must be your only or principal home.

4. Not subject to a possession order: If a court has ordered your eviction (even if you have not yet had to leave), you are not eligible.

5. Not declared bankrupt: If you are subject to a bankruptcy petition or order, you cannot proceed.

Joint Applications

You can apply jointly with up to three family members who have lived in the property for at least the past 12 months (even if they are not named on the tenancy), or with your spouse, civil partner, or someone you live with as a partner.

How to Apply

1. Submit a Right to Buy application (RTB1 form) to your landlord (the local council). This is available from your council or via the Government's Right to Buy website.
2. The council has four weeks to confirm whether you have the Right to Buy (eight weeks if you have been a tenant with them for less than the full qualifying period).
3. If confirmed, the council has eight weeks (for a house) or 12 weeks (for a flat) to send you a Section 125 notice setting out the purchase price and discount.
4. You have 12 weeks to accept or decline after receiving the Section 125 notice.
5. After acceptance, the process continues like a standard property purchase — you instruct a solicitor and arrange a mortgage if needed.

Discount Repayment Rules

If you sell or transfer the property within five years of purchasing it under Right to Buy, you must repay a proportion of the discount:

The repayment is based on the original discount amount received. It is not calculated as a proportion of any capital gain.

Example: You bought a flat for £130,000 with a £70,000 discount. You sell in year 2 for £160,000.

• Repayment: 80% × £70,000 = £56,000
• Your net proceeds after repayment: £160,000 − £56,000 = £104,000

First Right of Refusal

If you want to sell within the first 10 years (not just five), you must first offer it to either the council or another social landlord in the area. They have eight weeks to decide whether to purchase at full market value. After 10 years, no such obligation applies.

Mortgages for Right to Buy

Many high-street lenders will accept the Right to Buy discount as a deposit. Because the discount effectively represents instant equity, buyers can often secure a mortgage for 100% of the purchase price (which is still well below the market value of the property).

Several lenders have specific Right to Buy mortgage products, including Nationwide, Halifax, and NatWest. Mortgage advisers experienced in Right to Buy applications can help navigate the specific documentation requirements.

Regional Considerations

Scotland abolished Right to Buy in August 2016 — no new applications are possible and all existing applications were completed by that date.

Wales effectively closed the scheme to new applications in January 2019 under the Abolition of the Right to Buy and Associated Rights (Wales) Act 2018.

In England, while the scheme continues, a number of councils have applied to be exempt from the requirement to sell under Right to Buy — usually on the grounds that they face significant housing shortages. As of 2026, some councils in high-demand areas have received or are seeking exemptions. Check whether your local authority is participating before assuming you will be able to proceed.

The Right to Buy scheme has been a significant mechanism for working-class home ownership in England for over four decades. Understanding the discount structure, repayment rules, and local availability is essential before committing to an application.