Comparison · Property · 2026
Right to Buy vs Open Market Purchase 2026: Weighing the Discount Against Your Options
If you have been a council tenant for a few years, the choice is not just about the size of the discount -- it is about whether your current home is actually where you want to put down roots. Buying it under Right to Buy locks in a discount but ties you to that specific property, with a clawback if you move soon after. Buying elsewhere on the open market gives full freedom of choice but no discount cushion. This guide walks through how to think about the decision in 2026.
TL;DR -- 30-Second Summary
- • Right to Buy discount is a percentage of value based on tenancy length -- current caps vary by region since Nov 2024 reforms, so check gov.uk
- • Qualifying period is typically 3 years of public sector tenancy
- • Sell within 5 years and you must repay some or all of the discount
- • New-build council homes are excluded from Right to Buy for their first 10 years post-reform
- • Open market purchase gives full choice of property but needs a full deposit with no discount cushion
Side-by-Side Comparison
| Feature | Right to Buy | Open market purchase |
|---|---|---|
| Property choice | Restricted to your current tenancy home | Any property, any area you can afford |
| Discount | Percentage of value based on tenancy years, capped -- check current regional cap | None -- full market price |
| Eligibility | Typically 3+ years public sector tenancy | Anyone who can secure a mortgage or deposit |
| Sell within 5 years | Discount clawback applies, tapering to zero | No clawback -- sell freely |
| New-build exclusions | Council new builds excluded for 10 years post-2024 reform | Not applicable |
| Deposit needed | Discount may count toward equity, easing the deposit | Full deposit, typically 5-15%+ of market price |
A Worked Scenario: Weighing the Two Paths
Picture a tenant who has lived in their council house for 8 years and qualifies for Right to Buy. The council values the home at GBP 220,000. The exact discount depends on the current regional cap and the tenant's years of tenancy -- rather than assume a figure, the tenant requests a formal Section 125 notice from the council, which sets out the actual discounted price in writing.
| Consideration | Right to Buy this home | Buy a different home on the open market |
|---|---|---|
| Starting price | GBP 220,000 minus council-confirmed discount | Full market price of chosen property |
| Deposit required | Often lower, as the discount can count as equity | Full 5-15%+ cash deposit needed |
| Location and size | Fixed -- the current tenancy property | Free choice within budget |
| Risk if plans change and a move is needed within 5 years | Discount clawback reduces net benefit of an early sale | No clawback -- free to sell at any time |
The tenant's decision comes down to two questions that go beyond the maths: is this specific property the one they want to own for at least 5 years, and is the discount, once confirmed in writing, large enough to outweigh the freedom of buying wherever suits them best. Both answers are personal, not purely financial.
When Right to Buy Wins
Right to Buy tends to make sense when a tenant is settled and happy in their current home, plans to stay well beyond the 5-year clawback window, and would otherwise struggle to save a full open-market deposit. Because the discount can often be treated as equity by lenders, tenants without large savings may find they can become homeowners sooner than they could on the open market, while gaining full ownership of a property they already know intimately.
It also suits tenants whose home genuinely fits their long-term needs -- right size, right area, right layout -- so there is no compromise being made purely to access the discount.
When Open Market Purchase Wins
Buying on the open market wins when the current tenancy home is not where you want to stay long term -- too small, too far from work or family, or simply not right for the next stage of life. Chasing a discount on a home you do not really want can be a false economy once moving costs, the 5-year clawback, and the compromise of location are all weighed up.
It also wins for tenants who have the means to save a full deposit and want complete freedom to choose a property and area, with no restriction on when they can sell and no discount to repay if their circumstances change.