Right to Buy: FAQs

Right to Buy was introduced in 1980 and gives eligible social housing tenants the right to buy their home at a discount. Over the years, discount levels and eligibility criteria have varied.

The maximum cash discount is currently £102,400 across England, except in London boroughs where it is £136,400. Following the government’s review of Right to Buy discounts, maximum cash discounts will be reduced to £16,000 – £38,000 from 21 November 2024. The level of the maximum discount available will depend on where you live.

Applications for the Right to Buy received by social landlords before 21 November from eligible tenants will be eligible for the current discounts.

You probably have the Right to Buy if you’re a secure council tenant and have spent at least 3 years as a public sector tenant. The 3 years doesn’t have to be continuous and you can add together any time you have spent as a public sector tenant. A public sector tenant is someone whose landlord is a public body such as a council, housing association or government department. Eligibility criteria also include having no legal issues with debt or any outstanding possession orders. You should be aware that some properties are exempt from Right to Buy. Check our eligibility quiz which covers the main criteria. Your eligibility would be confirmed by your landlord as part of the Right to Buy application process.

The Right to Buy is not available to people who part own their home. You should talk to your landlord if you are considering buying a further share of your home.

You might have. Most housing association tenants do not currently have the Right to Buy but if you were a secure council tenant and were living in your home when it was transferred from the council to another landlord, like a housing association, then you may have a ‘Preserved’ Right to Buy. If you do, then you can buy your home under the scheme in the same way as if you were still a council tenant. Your landlord will be able to tell you whether you have the Right to Buy.

You can also find out more about eligibility on this website.

Any period spent in armed forces accommodation can count towards the three year qualifying period for Right to Buy and the qualifying period for the discount. You can also count this time if your husband/wife/civil partner was a member of the armed forces and you lived with them in this accommodation. If you currently live in armed forces accommodation you do not have the Right to Buy.

Housing is a devolved policy, and it’s up to the governments in Scotland, Wales and Northern Ireland to decide whether to offer schemes such as Right to Buy. You can find out more on their websites:

• Scotland
• Wales
• Northern Ireland

Yes, you can but only certain people are allowed to join an application. If you are eligible, you may be able to buy with:
– someone who is on the tenancy agreement with you;
– your spouse or civil partner;
– up to three family members, who have been living in your home for the 12 months immediately before you make the application. They don’t have to be on the tenancy agreement but it must be their main home.

Family members may be eligible to join in the Right to Buy with you. However, if they are not named on the tenancy agreement, they will need to have lived in the property for the past 12 months. There is nothing in law that specifies how a Right to Buy purchase should be financed. A family member (or someone else) could provide the funding for the purchase. However legal ownership of the property can only be in the names of the eligible tenant/s and other eligible applicants. We recommend that you get financial and legal advice on joint Right to Buy applications.

The following discount levels will apply:

• 3 years – 35% discount for a house and 50% discount for a flat
• 4 years – 35% discount for a house and 50% discount for a flat
• 5 years – 35% discount for a house and 50% discount for a flat
• 6 years plus – add 1% per year for houses (up to 70% or the cash maximum – whichever is lower), add 2% per year for flats (up to 70% or the cash maximum – whichever is lower)

If you have had a mutual exchange, your current tenancy is treated as a new tenancy and you retain your own tenancy history (not the other tenant’s).

It is important to be aware that, if you move into a housing association property, you will not have any preserved Right to Buy that the previous tenant might have had, and, if you move to a property with a different landlord, you will lose any preserved Right to Buy that you may have had in your old property.

It is worth checking the terms of a mutual exchange with your old and new landlord before agreeing to it.

Current maximum discounts are £136,400 in London and £102,400 in the rest of England. Following the government’s review of Right to Buy discounts, maximum cash discounts will be reduced to £16,000 – £38,000 from 21 November 2024. The level of the maximum discount available will depend on where you live.

There are different discount levels for houses and flats.

Houses – You get a 35% discount if you’ve been a public sector tenant for three years. The discount remains at 35% until you have 5 years public sector tenancy.

After year 5, the discount goes up by 1% for every extra year you’ve been a public sector tenant, up to a maximum of 70% – or £102,400  across England and £136,400 in London boroughs, whichever is lower (as noted above, maximum cash discounts will be reduced to £16,000 – £38,000 from 21 November 2024.)

Flats – You get a 50% discount if you’ve been a public sector tenant for three years. The discount remains at 50% until you have 5 years public sector tenancy.

After year 5, the discount goes up by 2% for every extra year you’ve been a public sector tenant, up to a maximum of 70% – or £102,400 across England and £136,400 in London boroughs, whichever is lower (as noted above, maximum cash discounts will be reduced to £16,000 – £38,000 from 21 November 2024.)

Our Right to Buy calculator can help you work out the discount you could receive based on length of tenancy and average property prices for your area. It can help get you started with an idea of how much it would cost to buy your home through Right to Buy. However, you won’t know the exact discount you can receive until your home is valued under the application process. Ensure you look at all the costs of home ownership, not just the purchase price and mortgage repayments.

From 2014, the maximum discount cash caps increased each year (on 6 April) by the percentage increase in the Consumer Prices Index (CPI) published by the Office for National Statistics. Following the government’s review of Right to Buy discounts, maximum cash discounts will be reduced to £16,000 – £38,000 from 21 November 2024 and will no longer increase annually by CPI.

Yes, applications received by social landlords before 21 November from eligible tenants will be eligible for the current discounts.

For most people, buying a home is the biggest investment they will ever make so it pays to do your research and look at all the costs involved. You are responsible for how you finance your Right to Buy purchase. Your landlord cannot advise you on this or recommend a specific mortgage or lender.

For free, unbiased information, the Money and Pensions Service is a good starting point – they have information and guidance about working out the costs of home ownership and understanding the types of mortgages available visit the Money and Pensions Service or call 0115 965 9570.

You could also speak to an official Right to Buy adviser for impartial and unbiased advice on finances – they will be able to support and guide you through your application. You can also take a look at our Getting a mortgage page which should answer some of the more popular questions on mortgages.

You can also consult an Independent Financial Adviser, mortgage broker or mortgage lender who will be able to provide information on mortgages. Some charge for their services. Always ask about costs and fees, and make sure they are regulated by the Financial Conduct Authority (FCA).

Check out carefully any person or company offering to help you buy your home as some of them may charge a fee. They may be offering a deal which is far better for them than for you. Further information about costs and things to consider before you buy is available in our Right to Buy summary booklet.

Many lenders will take the discount as a deposit, although some will not. You might want to talk to a mortgage lender / broker or an Independent Financial Adviser to find a mortgage that best suits your needs – always check costs before you appoint anyone.

If you take out a mortgage loan, you may have to pay for the cost of arranging it. You will also have to pay a valuation fee which can start at about £250 but may be substantially more.

When a sale is completed, you must pay the Land Registry to register you as the new owner. You can get more information on this from Land Registry.

You may have to pay Stamp Duty, which is a tax that people pay when they become homeowners. Stamp Duty is worked out as a percentage of the price you pay for a property. More information on Stamp Duty.

You are able to sell your home at any time, but if you sell your home within the first five years, the landlord has the right to ask for repayment of all or part of the discount. After five years, you can sell the property without repaying any of the discount you received. The amount you pay back also depends on the value of your home when you sell it.

No, apart from the requirement to pay a proportion of the discount back to the local authority if you sell within the first five years. However, if you sell within the first 10 years, you will have to offer it to either your former landlord or to another social landlord in your area at full market value. If your offer has not been accepted within 8 weeks, you will be free to sell the property on the open market.

Being on benefits doesn’t affect your legal Right to Buy but you will need to make sure you can afford your monthly repayments. Being a homeowner may affect your benefits. For example you won’t be eligible for housing benefit if you become a homeowner. So take time to work out all the costs involved. Look at our ‘Can I afford it?’ page for more information or contact the Benefits Agency, Citizens Advice Bureau or Money Advice Service.