Right to Buy Changes 2024 — Reduced Discounts and What Council Tenants Need to Know

What Is Right to Buy?

Right to Buy is a scheme that gives eligible council tenants and some housing association tenants in England the legal right to purchase their home at a discount from the open market value. It was introduced in 1980 under the Housing Act 1980 and has resulted in the sale of over 2 million council homes.

The 2024 Changes: Discounts Cut Significantly

In July 2024, the government announced a substantial reduction in the maximum Right to Buy discounts:

This is a reduction of approximately 80% in the maximum discount available. The government stated that the change was intended to slow the depletion of social housing stock and allow receipts from sales to be reinvested in new affordable homes.

Who Is Eligible?

To qualify for Right to Buy:

• You must be a secure tenant of the property
• The property must be your only or principal home
• You must have been a public sector tenant for at least **3 years** (the qualifying period was extended from 2 years to 3 years in 2024 alongside the discount reduction; previously it had been 5 years until 2012)
• The property must not be subject to a demolition notice or certain enforcement actions

Housing association tenants whose home was transferred from a local authority may be eligible under the Preserved Right to Buy. Housing association tenants in homes never owned by a council may have the Right to Acquire, which carries smaller discounts.

How the Discount Is Calculated

The discount is calculated as a percentage of the property’s open market value, based on your qualifying tenancy period:

**Houses:**

• 35% for the first 3 years of public sector tenancy
• Plus 1% for each additional complete year, up to a maximum of 70%

**Flats:**

• 50% for the first 3 years
• Plus 2% for each additional complete year, up to a maximum of 70%

The resulting discount is then capped at the maximum figure applicable to your area (£16,000 or £38,000 in London from July 2024).

Example Calculation

A council tenant in Manchester who has been a public sector tenant for 10 years wants to buy their house, valued at £120,000:

• Discount percentage: 35% + 7% (7 additional years) = 42%
• 42% of £120,000 = £50,400
• Cap applies: maximum discount is £16,000
• **Purchase price: £120,000 − £16,000 = £104,000**

The Five-Year Clawback Rule

If you sell your Right to Buy property within five years of purchase, you must repay some or all of the discount on a sliding scale:

• Year 1: 100% of the discount
• Year 2: 80%
• Year 3: 60%
• Year 4: 40%
• Year 5: 20%
• After year 5: nothing to repay

The repayment is calculated on the discount as a proportion of the current sale price, not the original discount amount. So if property values have risen, the repayment may exceed the original cash discount received.

Is Right to Buy Still Worth It?

With maximum discounts now at £16,000 (or £38,000 in London), the financial case for Right to Buy has narrowed considerably. For tenants of lower-value properties in areas with modest house prices, the discount may still represent a meaningful saving — particularly over a long tenancy where a higher percentage discount applies.

For tenants of properties worth £150,000+, the discount as a percentage of purchase price is now much smaller, and you would need to raise most of the purchase price through a mortgage. Mortgage lenders generally accept the discounted purchase price as the ‘market value’ for Right to Buy, meaning you can potentially borrow against the full value rather than just the discounted price.

Property Passport UK records HM Land Registry title data for properties across England and Wales. If you’re considering Right to Buy, you can use the sold price data to understand what comparable properties in your street or area have sold for, helping you assess whether the discounted purchase price represents a fair entry point.