Right to Buy: buying your council home

The Right to Buy scheme allows eligible tenants in England to buy their council home at a discount. A lower purchase price can help, but you still need to check whether you can afford the mortgage and ongoing costs.

This guide explains the main rules, mortgage options and costs to check before you apply. For other support routes, explore our overview of first-time buyer schemes.

What to check before buying

Who can use Right to Buy?

The scheme is for secure tenants: tenants with a legal right to remain, subject to their tenancy terms. The main conditions are:

• The property is your only or main home.
• It is self-contained, with its own living facilities.
• You have spent at least three years as a public sector tenant; these need not be consecutive.

You can apply with someone who shares your tenancy. Up to three family members can also join your application if they have lived with you for the past 12 months.

If your council home transferred to a housing association while you lived there, you may retain Preserved Right to Buy. However, other housing association tenants may have different rights, so ask your landlord which scheme applies.

How much discount could you get?

After three to five qualifying years, the discount starts at 35% for a house or 50% for a flat. After five years, it rises by one percentage point per extra year for houses, or two for flats.

The maximum discount is the lower of 70% of the property’s value and the applicable cash cap. Current caps range from £16,000 to £38,000, with local exceptions. Applications made before 21 November 2024 have different limits.

For example, the £26,000 cap in the North West would limit the discount on this council house:

The example assumes no further reduction applies. Past discounts and qualifying landlord expenditure can also reduce your Right to Buy discount. Therefore, check the current discount limits alongside your landlord’s calculation.

Getting a Right to Buy mortgage

Some lenders accept the discount as equity towards their deposit requirements. As a result, you may be able to buy without an extra cash deposit. Your lender will still check the property’s value and how much you can borrow.

Lenders offering Right to Buy mortgages assess your income, regular spending, credit history, age and mortgage term. They also check whether the property is suitable for a mortgage. For example, its construction, condition or resale restrictions may affect their decision.

A discount cannot make up for repayments you cannot afford. Even if your discount meets the lender’s deposit requirement, keep money aside for buying costs and unexpected bills.

Costs beyond the purchase price

How to apply for Right to Buy

Your landlord handles Right to Buy applications. Start with your local council or housing association:

1. Confirm your eligibility and tenancy history.
2. Complete the RTB1 application form and send it to your landlord.
3. Wait for the eligibility decision and, if accepted, the purchase offer.
4. Review the price, discount, property details and charges.
5. Arrange mortgage funding and legal work before completing.

You have 12 weeks to tell your landlord whether you accept its offer. However, this deadline is for your response; the purchase itself may take longer than 12 weeks.

Selling your Right to Buy home

DISCOUNT REPAYMENT

Selling within the first five years

You usually repay the discount if you sell within five years. The repayment proportion falls from 100% in year one to 80%, 60%, 40% and 20% in years two to five. The calculation applies your original discount percentage to the home’s value when you sell. The amount you repay also depends on how long you have owned it.

FIRST REFUSAL

Offering your home to a landlord

Separately, if you sell within ten years, you must first offer your home to your former landlord or another local social landlord. If it does not agree to buy within eight weeks, you can sell elsewhere. Some rural homes have extra resale restrictions.

How Muttuo can help

Muttuo compares options from more than 100 lenders across the market. We can help you assess funding for your purchase.

Check how lenders treat your discount

Understand borrowing against your budget

Prepare your mortgage application

Plan your council home purchase

Talk through your circumstances and Right to Buy mortgage options.

Speak to Muttuo →

Your home may be repossessed if you do not keep up repayments on your mortgage.

Common Right to Buy questions