If you're a council or housing association tenant in England, you may have the legal right to buy your home at a significant discount — potentially tens of thousands of pounds off the market value. Right to Buy is one of the most valuable schemes available to social housing tenants, but it comes with strict eligibility rules, a detailed application process, and costs beyond the purchase price that are easy to overlook.
What Is Right to Buy?
Right to Buy gives eligible council tenants in England the right to purchase their home at a discount below its market value. The scheme was introduced in 1980 under the Housing Act and has since helped over 2 million households become homeowners. Housing association tenants may be covered under Preserved Right to Buy, which applies if their home was previously a council property transferred to a housing association after the tenant moved in.
The discount is the key benefit. It is calculated as a percentage of the property's market value, and it increases the longer you have been a public sector tenant.
Who Is Eligible?
To qualify for Right to Buy, you must meet all of the following conditions:
- The property must be your only or main home
- The property must be self-contained
- You must be a secure tenant — meaning you have a formal tenancy with your local council or a housing association
- You must have spent at least 3 years as a public sector tenant — time with different public sector landlords can be combined
You cannot apply if your home is sheltered housing, if it has been designed for people with special needs, or if your landlord is a charity. You also cannot apply if you have a possession order against you or are subject to bankruptcy proceedings.
How the Discount Is Calculated
| Property Type | Discount After 3 Years | Additional Discount | Maximum Discount (outside London) | Maximum Discount (London) |
|---|---|---|---|---|
| House | 35% | 1% per extra year (up to 70%) | £96,000 | £127,900 |
| Flat | 50% | 2% per extra year (up to 70%) | £96,000 | £127,900 |
For example: 10 years as a public sector tenant, house valued at £180,000. Discount = 42% = £75,600. Purchase price = £104,400. If the percentage would exceed £96,000, the discount is capped at £96,000.
The Application Process
- Complete the RTB1 form and submit it to your landlord
- Landlord responds within 4 weeks (up to 8 weeks to verify tenancy history)
- Valuation — your landlord arranges a formal valuation; you can appeal through the District Valuer
- Section 125 notice — formal offer with price and discount; you have 12 weeks to accept or decline
- Conveyancing and mortgage — legal process begins; you will need a solicitor
- Completion — you become the legal owner
The whole process typically takes 6 to 12 months.
Selling Within 10 Years
If you sell within 10 years, you must offer the property back to your former landlord first (right of first refusal). If you sell within the first 5 years, you must repay some or all of the discount on a sliding scale: 100% in year 1, reducing by 20% each year.
Costs Beyond the Purchase Price
- Survey: £300 to £700 for a HomeBuyer Report; £600 to £1,500 for a Building Survey
- Conveyancing: £1,000 to £2,000 including searches and Land Registry fees
- Mortgage arrangement fee: £0 to £2,000 depending on the product
- Service charges on flats: Ask your landlord for a 3-year history before committing
- Buildings insurance: Previously included in your rent; now your responsibility
- Ongoing maintenance: Major repairs are no longer your landlord's problem
Right to Buy is a significant financial decision. Before you apply, speak to an independent mortgage adviser and a solicitor with experience in Right to Buy transactions.
If you buy through Right to Buy and want to plan renovations, Renovate Me gives you a personalised, step-by-step renovation roadmap based on your home, budget, and goals. Start your plan at renovate-me.madethis.app.
Published June 2025