Property · 2026/27
Right to Buy UK 2026: How to Buy Your Council Home at a Discount
Right to Buy gives eligible council tenants in England the right to purchase their home at a significant discount -- up to £102,400 outside London and £136,400 in London. This guide covers who qualifies, how the discount is calculated, what happens if you sell within 5 years, how mortgages work, and the full application process.
What Is Right to Buy?
Right to Buy (RTB) was introduced in 1980 under the Housing Act and gives secure council tenants in England the legal right to purchase their home at a below-market price. The scheme has helped over 2 million households become homeowners since its launch. In 2026/27, the scheme continues with maximum discounts of £102,400 outside London and £136,400 in London (uprated each April by the consumer price index).
Right to Buy only applies in England. The scheme was abolished in Wales in 2019 and in Scotland in 2016. Northern Ireland has its own Social Housing Purchase Scheme with different rules.
Not all social housing tenants qualify -- you must be a secure tenant of a property owned by your local council (or a housing association that took over from a council), and you must meet the 3-year public sector tenancy requirement.
Eligibility Requirements
To qualify for Right to Buy in 2026/27, you must:
- Be a secure tenant -- not an assured tenant, introductory tenant, or licensee.
- Have been a public sector tenant for at least 3 years continuously (though years in different public sector properties count cumulatively).
- Live in the property as your only or main home.
- Not be subject to a bankruptcy order or possession proceedings.
- Not be in serious rent arrears (minor arrears may still allow RTB).
Housing association tenants whose landlord was originally a council may have "preserved" Right to Buy rights. Contact your landlord to confirm.
Note: Joint applications are possible with up to 3 family members who have lived in the property for at least 12 months, or with your spouse/civil partner regardless of residence period.
How the Discount Is Calculated
The discount depends on how long you have been a public sector tenant and whether the property is a house or a flat:
| Property type | Start discount (3 years) | Additional per year | Maximum discount % |
|---|---|---|---|
| House | 35% | +1% | 70% |
| Flat | 50% | +2% | 70% |
The percentage discount is applied to the open market value of your home, subject to the monetary cap (£102,400 / £136,400 in London). If the calculated discount exceeds the cap, the cap applies.
Example: Your council house has a market value of £200,000. You have been a public sector tenant for 15 years. Discount: 35% + (12 x 1%) = 47%. Calculated discount: £94,000. This is under the £102,400 cap, so you pay £106,000.
Stamp Duty (SDLT)
Stamp Duty Land Tax applies to the discounted purchase price, not the market value. For 2026/27, first-time buyers pay:
- 0% on the first £425,000
- 5% on the portion between £425,001 and £625,000
- Standard rates apply above £625,000
Most Right to Buy purchases fall well below £425,000 after the discount, so many buyers pay no Stamp Duty at all. Use our Stamp Duty calculator to check your specific situation.
Right to Buy Mortgages
Many high-street lenders offer Right to Buy mortgages. The key advantage: some lenders treat the discount as your deposit, meaning you can potentially purchase with zero cash down if the loan-to-value (LTV) works out within their limits.
For example, if your home is worth £180,000 and your discount is £63,000 (35%), you are purchasing at £117,000. A lender willing to lend at 95% LTV on the discounted price would lend £111,150 -- requiring just £5,850 cash. Some lenders go to 100% on the discounted price.
Standard affordability checks apply: income multiples, credit scoring, and proof of ability to service the mortgage. Use our mortgage calculator to estimate monthly repayments.
The 5-Year Resale Rule
If you sell your Right to Buy property within 5 years, you must repay a proportion of the discount to the council. The repayment is calculated on the market value at the time of sale, not the original purchase price:
| 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 |
| After year 5 | Nothing to repay |
Important: The repayment is based on market value at resale, not your purchase price. In a rising property market, you could owe more in absolute terms than you originally received as a discount. Plan carefully if you think you may need to sell within 5 years.
The Right to Buy Application Process
- Complete form RTB1 (available from your council or gov.uk) and submit to your landlord.
- The landlord has 4 weeks to confirm eligibility (8 weeks if they have owned the property less than 3 years).
- You receive a Section 125 notice with the landlord's valuation and the offer price. If you disagree with the valuation, you can request an independent valuation from the Valuation Office Agency.
- You have 12 weeks to accept or decline the offer.
- If you accept, you must complete the purchase within 3 years of the original RTB1 application (though extensions can be granted by the landlord).
Throughout the process, keep all correspondence in writing and retain copies. The process is free -- you should not pay any application fees to your landlord.
Costs to Budget For
- Survey: commission an independent survey even if the council has done a valuation (£400--£1,500 depending on type).
- Legal fees (conveyancing): typically £1,000--£2,000 including Land Registry fees.
- Mortgage arrangement fees: varies by lender, often £0--£1,000.
- Buildings insurance: mandatory from exchange of contracts; budget £200--£500/year.
- Ongoing maintenance and repairs: as a homeowner, you are responsible for all repairs the council previously handled.
- Service charges (flats): if buying a leasehold flat, you will pay service charges and ground rent -- review the lease carefully.