Right to Buy Advice and Eligibility

The main purpose of the Right to Buy government scheme is to help council and housing association tenants buy their homes at discounted prices. The discount is up to 70% or £110,500 in London and £82,800 outside London.

Discount Factors for Right to Buy Scheme 

The discount you could potentially receive depends on: 

1. Length of tenancy - the longer you've been a tenant, the larger the discount. The discount usually caps after a certain number of years 

2. Type of property - discounts can differ based on whether the property is a house or a flat 

3. Value of the property – more expensive properties may benefit from a greater discount 

4. Regional caps - there are maximum discount limits which can vary depending on the location of the property

You can use our Right to Buy calculator to figure out how much you could potentially save.

To apply for the Right to Buy discount, both you and your property need to meet the following requirements.

You must: 

• Be a council tenant or have been a council tenant when your property was transferred from the council to a housing association – in the latter case, you would instead apply for the Preserved Right to Buy which we explain below
• Have a secure tenancy with your local council or a participating registered social landlord, not an introductory or flexible tenancy
• Have been a public sector tenant for at least 3 years; these years do not need to be consecutive but must total up to the minimum period
• Not live in sheltered or other housing suitable for elderly or disable people
• Not have any legal problems with debt
• Not have any outstanding possession orders against you 

You can also be eligible if you are applying as a group of tenants (e.g. family members) living together 

Your council home must: 

• Be your only or main home 
• Be self-contained
• Not be due to be demolished 

If the council used to own your property but now it’s owned by a housing association, you may qualify for the Preserved Right to Buy. 

The Preserved Right to Buy is for people who want to buy their ex-council home. You may have the Preserved Right to Buy if you were a secure council tenant living in your home at the time it was transferred from your council to a housing association.

Even though the Preserved Right to Buy has slightly different rules and regulations about who can apply, it’s still a form of the Right to Buy scheme and works in the same way; you receive a potential discount when you go to buy your property.

You can make a joint application for the Right to Buy scheme with:

• Someone who shares your tenancy
• Up to 3 family members who’ve lived with you for the last 12 months, regardless of whether they share your tenancy or not

You don’t have to take out a specific type of mortgage to purchase a Right to Buy property. However, securing a mortgage for a leasehold can be a little more complex, particularly if there isn’t long left on the lease. You can find more in our guide: Freehold and Leasehold Properties.

If you've never owned a property before and want to know more about how it works, see our hub page to learn about being a first time buyer. You can also compare different first time buyer mortgage rates with our best buys and read about what to expect in our guide to buying your first home.

So, you meet the eligibility criteria and you have the means to buy your home, but how do you apply for Right to Buy? 

The application process involves several steps:

The Right to Buy scheme was first introduced in 1980. It’s been around a while but has only undergone major changes in the last few years.

We’ve listed 3 of the biggest changes below:

• In 2015, the number of years that you must have been a public sector tenant to be eligible was reduced from 5 to 3
• In April 2018, the Right to Buy maximum discount was increased to £80,900 across England and £108,000 in London.
• In April 2019, the Right to Buy maximum discount was increased to £82,800 across England and £110,500 in London.

The Right to Buy discount increases in April each year, in line with the CPI (Consumer Price Index).

If you’re not eligible for Right to Buy, you may be able to use Right to Acquire instead.

There are a few main differences between Right to Buy and Right to Acquire. These revolve around who’s eligible and the discount you can receive.

Right to Buy is a scheme which allows council tenants, or housing association tenants who were council tenants, to buy their property with a discount.

Right to Acquire is a scheme which allows housing association tenants, not council tenants, to buy their property with a discount. The discount is £9,000 - £16,000 which is significantly less than the discount available through the Right to Buy scheme. The amount of discount that you could receive through Right to Acquire will depend on where you live in the UK.

• Financial planning: ensure you have a solid plan for financing the purchase, including mortgage readiness and consideration of ongoing costs like maintenance, insurance and possibly higher utility costs 
• Legal advice: it's a good idea to get legal advice to help navigate the process, understand the terms of the sale, and any implications for future sale or changes in property value 
• Survey and valuation: consider getting an independent survey to check the property's condition before committing to the purchase 

The rules and availability of Right to Buy can change, and there have been discussions about altering or reintroducing similar schemes in regions where it has ended. Always check the latest information from local authorities or the official government website to get the most current details. 

Right to Buy provides a significant opportunity for eligible tenants, but it's important to approach the purchase with full knowledge of the responsibilities and financial commitments involved. Contact us today on 0330 433 2927 to learn more.