Right to Buy 2026: How to Buy Your Council Home at a Discount
Right to Buy explained: who is eligible, how the discount is calculated (up to £102,400 or £136,400 in London), how to apply, mortgage considerations, and the 5-year repayment rule.
What is Right to Buy?
Right to Buy is a UK government scheme introduced in 1980 under the Housing Act that gives eligible council tenants in England the legal right to purchase the home they rent from the council, at a discounted price below market value. The scheme has helped more than 2 million council tenants become homeowners since its introduction.
Right to Buy gives tenants who may not otherwise be able to afford to buy on the open market the opportunity to get onto the property ladder in the home they already live in -- at a price that is sometimes dramatically lower than the market value of the property.
The scheme applies to England only. Scotland and Wales have abolished their equivalent schemes.
Who is eligible?
To use Right to Buy, you must meet all of the following conditions:
Tenancy requirement
You must have been a public sector tenant for at least 3 years. The 3 years does not need to be:
- In the same property.
- With the same landlord.
Time spent as a tenant with any of the following counts toward the 3-year qualification:
- A local council (any council).
- A housing association (social registered provider).
- Armed Forces housing (SFA/SLA).
- NHS trust housing.
- Any other government body.
The 3 years can be non-continuous (e.g. 2 years with one council, a gap, then 1 year with another).
Secure tenancy
Your tenancy must be a secure tenancy (most long-standing council tenants have this) or an assured tenancy (if you were transferred to a housing association that kept the right to buy).
Your home is your main home
The property must be your only or main home. You cannot use Right to Buy for a property you sublet or do not primarily live in.
The property must be eligible
Most council properties are eligible, but there are exceptions:
- Properties designated for the elderly or physically disabled.
- Properties that are "hard to let" due to location or condition.
- Properties where the landlord is a charity.
- Some housing association properties (housing association tenants may have access to the Voluntary Right to Buy pilot in some areas, but availability is limited).
Joint applications
You can apply jointly with:
- Your spouse or civil partner.
- Up to 3 family members who have lived in the property for the past 12 months (regardless of whether they are on the tenancy).
How the discount is calculated
The Right to Buy discount depends on two things: your type of property (house or flat) and how long you have been a public sector tenant.
Houses
| Public sector tenancy | Discount |
|---|---|
| 3 years | 35% |
| 4 years | 36% |
| 5 years | 37% |
| ... | +1% per year |
| 40 years | 70% (maximum) |
The discount increases by 1% per year after 3 years, up to a maximum of 70%.
Flats and maisonettes
| Public sector tenancy | Discount |
|---|---|
| 3 years | 50% |
| 4 years | 52% |
| 5 years | 54% |
| ... | +2% per year |
| 13 years | 70% (maximum) |
The discount increases by 2% per year after 3 years, up to a maximum of 70%.
Financial cap
The discount is also capped at a maximum financial amount:
- Outside London: £102,400
- London boroughs: £136,400
The actual discount is whichever is lower: the percentage-based discount or the financial cap.
Worked example
Maria is a council tenant who has lived in her 3-bedroom council house for 18 years. The house is valued at £250,000.
- Discount rate: 35% (base for house) + 15% (15 additional years x 1%) = 50%.
- Discount amount: 50% x £250,000 = £125,000.
- But the financial cap is £102,400.
- Maria's actual discount: £102,400 (capped).
- Purchase price: £250,000 - £102,400 = £147,600.
For a flat valued at £200,000 after 10 years of tenancy:
- Discount rate: 50% (base) + 14% (7 additional years x 2%) = 64%.
- Discount amount: 64% x £200,000 = £128,000.
- Capped at £102,400.
- Purchase price: £200,000 - £102,400 = £97,600.
How to apply: the RTB1 form
The application process:
- Complete the RTB1 form -- the official Right to Buy application. Download from GOV.UK or request from your landlord.
- Submit to your landlord -- by post, or in person at the housing office.
- Landlord responds within 4 weeks (or 8 weeks if you have been a tenant for less than 3 years) -- either approving or refusing the application with reasons.
- Valuation -- your landlord arranges an independent valuation of the property. You receive a formal written offer (the Section 125 Notice) setting out the price, any known structural issues, and service charges (for flats).
- Review the offer -- you have 12 weeks to accept or decline. If you disagree with the valuation, you can appeal to the District Valuer.
- Proceed to completion -- arrange your mortgage and solicitor, and complete the purchase as a standard conveyancing transaction.
If the landlord refuses, the refusal must be in writing with legal reasons. Common valid reasons: the property is due for demolition, it has been designated for a specific use, or you do not meet eligibility criteria.
Mortgage considerations for Right to Buy
Financing a Right to Buy purchase requires a mortgage in most cases. Key points:
Mortgage based on the discounted price
Many mainstream lenders will lend based on the discounted purchase price, not the market value. This means a smaller loan amount -- though you still need a deposit (typically 5-10% of the purchase price).
Some lenders will lend up to 100% of the discounted purchase price, treating the discount as the deposit. This varies by lender and your creditworthiness.
Government Right to Buy mortgage guarantee
The government has operated schemes to help Right to Buy buyers with small deposits access mortgages. Check GOV.UK for the current status of any mortgage guarantee arrangements.
Service charges and leasehold issues for flats
If you are buying a flat, you will become a leaseholder, not a freeholder. This means:
- You will pay service charges for communal areas, building insurance, and maintenance.
- The council (as freeholder) can charge for major works -- even years after your purchase.
- The council must provide a 5-year cap on service charges after purchase, but after that they can increase.
Service charges for flats in large council estates can be substantial -- sometimes £2,000-£5,000 or more per year. Always request the service charge history and ask about planned major works before buying.
Stamp Duty Land Tax
Right to Buy purchases are subject to SDLT in the normal way, based on the discounted purchase price (not market value):
- Up to £250,000: 0% (for those who qualify as first-time buyers, relief may extend to £425,000).
- £250,001 - £925,000: 5%.
- Above £925,000: 10%.
For most Right to Buy purchases at discounted prices, SDLT will be modest or zero. Check the SDLT calculator for your specific purchase price.
The 5-year repayment rule
If you sell your Right to Buy property within 5 years of purchase, you must repay a proportion of the discount:
| Year of sale | Proportion of discount repaid |
|---|---|
| Year 1 (within 12 months) | 100% |
| Year 2 | 80% |
| Year 3 | 60% |
| Year 4 | 40% |
| Year 5 | 20% |
| After year 5 | Nothing |
The repayment is calculated as a percentage of the current market value of the property, not the original discount. So if the property has risen in value, you repay more.
Example: you bought at a £60,000 discount. After 2 years you sell for £230,000 (original purchase price was £150,000, original market value £210,000).
- Repayment rate: 80%.
- Repayment amount: 80% x (£60,000 x £230,000/£210,000) = 80% x £65,714 = £52,571.
If you die within 5 years, the repayment obligation passes to your estate if the property is sold, but not if it is inherited and the heir continues to live in it.
The right of first refusal
In many areas, if you sell within 10 years of buying, you must first offer the property back to your original landlord (or another social landlord in the area) at market value. This is the "right of first refusal" requirement and is included in the title deeds.
After you buy: responsibilities
Once you complete the purchase, you are responsible for:
- All repairs and maintenance inside the property.
- Buildings insurance (if a house -- for a flat, this is usually part of the service charge).
- Ground rent (for some older leases -- check).
- Service charges (for flats).
- Leasehold management costs if the council is the freeholder.
Many buyers underestimate the ongoing costs of homeownership compared to renting. Budget for:
- Annual buildings and contents insurance.
- Emergency repair fund (boiler, roof, etc.).
- Service charge increases.
- Potential major works costs.
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Frequently asked questions
How long must I have lived in my council home to use Right to Buy?
You must have been a public sector tenant for at least 3 years. This does not need to be in the same property or even the same council. Time as a tenant with a housing association, armed forces housing, or NHS trust housing can also count.
What is the maximum Right to Buy discount in 2026?
The maximum discount is £102,400 in most of England, and £136,400 in London boroughs. The actual discount depends on how long you have been a public sector tenant and the type of property (house or flat).
How is the Right to Buy discount calculated?
For a house: you get 35% discount after 3 years, rising by 1% for each additional year up to a maximum of 70% or the financial cap (whichever is lower). For a flat: 50% after 3 years, rising by 2% for each additional year up to a maximum of 70% or the financial cap.
Do I need a mortgage to buy under Right to Buy?
You will usually need a mortgage for the balance (market value minus discount). Some lenders offer mortgages based on the discounted price, not full market value. The government's Right to Buy mortgage guarantee scheme helps buyers with limited deposits. A specialist mortgage broker is advisable.
What happens if I sell the Right to Buy property within 5 years?
If you sell within 5 years of purchase, you must repay part of the discount proportionally: 100% if sold in year 1, 80% in year 2, 60% in year 3, 40% in year 4, 20% in year 5. After 5 years, no repayment is required.
Is Right to Buy available in Scotland and Wales?
No. The Right to Buy scheme applies to England only. Scotland abolished Right to Buy in 2016. Wales abolished it in 2019. Northern Ireland has a separate Right to Buy scheme. Housing association tenants in England were included via the Voluntary Right to Buy pilot but this has limited availability.
Who is responsible for repairs after I buy under Right to Buy?
Once you purchase, you become responsible for all repairs and maintenance inside your home. If you buy a flat in a building where the council owns other flats, you may also be liable for service charges for communal areas and the building fabric -- these can be substantial and should be investigated before purchase.
Can I rent out a property bought under Right to Buy?
You cannot sublet the entire property for the first year after purchase. After that, subletting is permitted but you must notify the council. If the council can demonstrate the property is no longer your main home, in some circumstances they may be able to reclaim it. Tax on rental income applies in the normal way.
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