Right to Buy has allowed eligible council tenants in England to purchase their council home at a discount for decades, though the scheme has changed considerably over the years, and recent reforms have significantly reduced the discounts on offer. Here’s what it involves today.

What Right to Buy Actually Is

Right to Buy gives eligible council tenants in England the legal right to purchase the home they’re currently renting from their local authority, at a discount below the property’s full market value. It’s a scheme specific to council tenants, distinct from the various shared ownership and Help to Buy style schemes aimed at buyers not currently in social housing.

Who’s Eligible

To qualify for Right to Buy, a tenant generally needs to have been a public sector tenant (which can include time spent renting from a council, housing association, or certain other public bodies, not necessarily all with the same landlord) for a minimum qualifying period, currently three years, though this doesn’t need to be three continuous years with the same landlord. The property also needs to be the tenant’s only or main home, and certain types of property, including some specialist or supported housing, are excluded from the scheme entirely.

How the Discount Works

The discount available under Right to Buy is based on how long a tenant has been a public sector tenant, up to a maximum percentage and a maximum cash amount, the cash cap is reviewed periodically and varies depending on location, with different caps applying in London compared with the rest of England. It’s worth checking the current maximum discount and cash cap directly with the relevant local authority or through the official Right to Buy guidance, since these figures have changed multiple times in recent years and can differ by region.

Discounts Have Been Reduced Significantly

Following a review of the scheme, the government substantially reduced the maximum discounts and cash caps available under Right to Buy, citing concern that the previous, more generous discount levels were reducing the overall stock of social housing faster than councils could replace it. Anyone considering Right to Buy now should check current discount levels carefully rather than relying on figures from a few years ago, since the numbers involved have changed meaningfully.

The Repayment Condition If You Sell Early

A key condition attached to Right to Buy is that if the property is sold within five years of purchase, some or all of the discount received must be repaid to the council, on a sliding scale that reduces the closer the sale is to the five-year mark. This is designed to prevent the scheme being used purely to buy at a discount and resell quickly for a profit, rather than as a genuine route into long-term homeownership.

Financing a Right to Buy Purchase

Buyers using Right to Buy generally need to arrange their own mortgage in the same way as any other buyer, though the discount itself often functions similarly to a deposit in reducing the amount that needs to be borrowed. Some lenders have specific experience with Right to Buy mortgages and may be more familiar with the scheme’s particular requirements than others, so it’s worth seeking a broker experienced with this type of purchase specifically.

What to Check Before Applying

Before applying, it’s worth understanding the full financial picture beyond just the discounted price, including any service charges if the property is a flat, the cost of a survey (particularly important given council housing stock varies significantly in age and condition), and realistic ongoing maintenance costs that would previously have been the council’s responsibility as landlord but become the owner’s responsibility after purchase.

The Bottom Line

Right to Buy remains a genuine route into homeownership for eligible council tenants, though the discounts available have been reduced considerably from previous levels, and the five-year repayment condition means it’s designed for tenants genuinely planning to stay long-term rather than resell quickly. Checking current eligibility criteria and discount levels directly, since both have changed in recent years, is an essential first step before assuming what applied previously still does.