If you're a council tenant in England, the Right to Buy scheme could let you purchase your home at a significant discount — potentially saving you tens of thousands of pounds. But the rules are complex, the pitfalls are real, and the scheme no longer exists in its original form in Wales or Scotland. This guide covers everything you need to know in 2025: eligibility, discount calculations, how to apply, what happens after you buy, and the common mistakes that catch buyers out.
What Is Right to Buy?
Right to Buy was introduced under the Housing Act 1980 and gives most secure council tenants in England the legal right to purchase their home from their local authority or housing association at a discount based on how long they've been a tenant. It remains one of the most generous property purchasing schemes available — but it comes with strings attached.
Are You Eligible?
To qualify for Right to Buy, you must meet all of the following criteria:
- Public sector landlord: Your landlord must be a council, housing association, or other public body. (Note: many housing association tenants lost the right to buy when their landlord transferred from the council — check your tenancy agreement.)
- Secure tenancy: You must hold a secure tenancy, not an assured or introductory tenancy.
- Three-year minimum: You must have been a public sector tenant for at least three years (not necessarily with the same landlord or in the same property).
- Your only or main home: The property must be your only or principal home.
- Self-contained: The property must be self-contained.
You cannot use Right to Buy if you're subject to a bankruptcy order, a court order to leave the property, or if the property is sheltered housing designated for the elderly or physically disabled.
How Is the Discount Calculated?
The discount depends on whether you live in a house or flat, and how long you've been a public sector tenant.
| Property Type | Starting Discount | Annual Increase | Maximum Discount |
|---|---|---|---|
| House | 35% | +1% per year (after year 3) | 70% |
| Flat | 50% | +2% per year (after year 3) | 70% |
Examples:
- A tenant who has rented a house for 10 years gets: 35% + (7 × 1%) = 42%
- A tenant who has rented a flat for 15 years gets: 50% + (12 × 2%) = 74% — capped at 70%
Maximum Discount Caps (2025)
The government caps the maximum cash discount regardless of percentage:
| Region | Maximum Discount |
|---|---|
| London | £136,400 |
| Rest of England | £102,400 |
These figures are reviewed annually in line with inflation. If the percentage-based discount would exceed the cash cap, the cash cap applies.
Right to Buy in Wales and Scotland
Right to Buy was abolished in Wales in 2019 under the Renting Homes (Wales) Act reforms. Existing tenants who had already started the process were allowed to complete, but no new applications have been accepted since.
In Scotland, Right to Buy was abolished in August 2016 under the Housing (Scotland) Act 2014.
If you're in Wales or Scotland, you are not entitled to Right to Buy your council home regardless of how long you've been a tenant.
Preserved Right to Buy
If your home was previously owned by a council but transferred to a housing association, you may have Preserved Right to Buy — meaning you kept your right to buy even though your landlord changed. This applies only to tenants who were living in the property at the time of transfer. Check with your housing association.
How to Apply: Step-by-Step
Step 1: Submit the RTB1 Form
Download and complete the RTB1 notice from Gov.uk and send it to your landlord. This is your formal application.
Step 2: Landlord's Decision (8 Weeks)
Your landlord must respond within 4 weeks (or 8 weeks if you've been a tenant for less than three years) to confirm whether you have the right to buy. If they miss this deadline, you can serve a notice requiring a response.
Step 3: Surveyor Valuation and Offer Notice (Section 125 Notice)
If your right is confirmed, the landlord must send you an offer notice (Section 125) within 8 weeks for a house or 12 weeks for a flat. This sets out the valuation, discount, and any known major works planned.
Step 4: Accept or Refuse
You have 12 weeks to accept the offer. If you think the valuation is too high, you can request an independent valuation from the District Valuer (free of charge). Their decision is binding.
Step 5: Complete the Purchase
Instruct a solicitor, arrange your mortgage, and proceed to completion as a standard property purchase.
If You Sell Within Ten Years: Discount Repayment Rules
Selling too soon means repaying some or all of the discount. The repayment schedule is:
| Year of Sale | Discount Repayment |
|---|---|
| Year 1 | 100% |
| Year 2 | 80% |
| Year 3 | 60% |
| Year 4 | 40% |
| Year 5 | 20% |
| Year 6+ | Nothing |
The repayment is calculated on the discount percentage (not a fixed cash amount), so if property values have risen, you may repay more than you received. Also note: if you sell within 10 years, your council has first right of refusal to buy the property back at the market rate.
Mortgage Options for Right to Buy
Getting a mortgage for Right to Buy has quirks that catch buyers off guard:
- LTV is based on full market value, not the discounted price. If a property is worth £200,000 and you're buying at £140,000 (30% discount), a 90% LTV mortgage would be £180,000 — more than the purchase price. Some lenders will lend up to 100% of the discounted price.
- Not all lenders accept RTB applications. Some high street lenders are cautious. Specialist brokers experienced in Right to Buy are worth consulting.
- Flats may be harder to mortgage — see below.
After You Buy: Repairs and Service Charges
As an owner, you become responsible for repairs and maintenance within your home. If you've purchased a flat, you become a leaseholder — which means you also pay service charges for communal areas and building maintenance managed by the council or freeholder.
Service charges can be unpredictable. In the first five years after buying, there are protections: if the council announces major works or repairs, these were considered during the purchase (they should be in the Section 125 notice). But after five years, you're fully exposed.
Common Pitfalls to Watch Out For
Leasehold Flats
Buying your flat under Right to Buy means buying a leasehold interest, typically 125 years. You'll pay ground rent (though this was abolished for new leases after 2022) and service charges. Service charges on council estates can be high — get the history before committing.
Major Works Notices
The Section 125 notice must list any major works planned in the next five years. If it doesn't, ask. Being hit with a £15,000 service charge bill for roof replacement shortly after buying is not uncommon.
Estate Regeneration
If your block or estate is earmarked for regeneration or demolition, Right to Buy may still be available — but you could find yourself compulsorily purchased at market value in a few years, with no additional compensation for improvements you've made.
The Discount Is Not Cash
You can't take the discount and walk away. It's only realised when you sell, and only if values have increased.
Conclusion
Right to Buy remains one of the few genuine routes to affordable homeownership in England. The discounts are substantial — potentially £136,400 in London — and for long-term tenants in desirable areas, the numbers can stack up very favourably. But it's not without risk. Leasehold complications, service charge exposure, and the discount repayment rules mean you need to go in with eyes open. Get independent legal advice, have the property surveyed, and understand what you're buying before signing anything.
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