Right to Buy Explained: 2026 Eligibility, Discounts, and Process

What Right to Buy is

Right to Buy is a long-running scheme in England that gives most secure tenants of a council home the legal right to buy their property at a discount. It was introduced in 1980 and is responsible for around 2 million transfers from local authority ownership to private ownership over the last 45 years. The scheme is much smaller now than at its peak, partly because the available housing stock has reduced and partly because successive policy changes have altered the discount levels.

In Wales the scheme is closed (the Welsh Government abolished Right to Buy in 2019). In Scotland it was abolished in 2016. In England it remains open.

Who is eligible in 2026

You qualify if all the following are true:

1. The property is your only or main home

2. You are a secure tenant of a council, and the home is owned by a local authority or registered provider in some specific cases

3. You have been a public sector tenant for at least 3 years (with some breaks allowed)

4. The property is a house or flat that is not specifically excluded

5. You are not subject to a possession order or undischarged bankruptcy

Tenants of housing associations are not always covered. Some housing association tenants have Right to Acquire (a similar but more limited scheme) instead. The eligibility depends on when the property was transferred from council ownership and other technical factors. Your housing officer can tell you which scheme applies to your home.

How the discount works

The discount is the headline benefit. In England in 2026:

• Houses: starting at 35% discount after 3 years of qualifying tenancy, rising by 1% per year up to a maximum of 70% or a cash cap (whichever is lower)
• Flats: starting at 50% discount after 3 years, rising by 2% per year up to a maximum of 70% or the cash cap

The cash cap was £102,400 in London and £76,800 outside London until October 2024, when the previous government's higher cap was rolled back. The current cap is £16,000 in most of England outside London (with some regional variation), reflecting policy changes by the new government. Check the latest figures with your local authority before applying.

The discount is calculated as a percentage of the open market value as determined by an independent valuer.

The process

1. Apply on form RTB1 to your landlord (the council or registered provider)

2. Landlord acknowledges within 4 weeks confirming whether you qualify

3. Landlord serves a Section 125 notice (within 8 to 12 weeks) with the offer price, the calculated discount, and the terms

4. You have 12 weeks to accept the offer

5. Conveyancing proceeds in the normal way, with searches, mortgage application, and contract preparation

6. Completion typically 6 to 12 months after acceptance

The application fee is small (often nil). The biggest cost outside the property price itself is the mortgage, conveyancing, and survey.

Mortgage challenges

Right to Buy can be harder to mortgage than a standard purchase. Specific issues:

• Lender discount limits: many lenders cap the loan at the discounted price, but some are reluctant to lend more than 95% of the discounted price even if your offer is well below market value
• Discount clawback: the discount is repayable on a tapered basis if you sell within 5 years (full repayment in year 1, 80% in year 2, etc). Lenders factor this in.
• Building safety: tall blocks may face EWS1 issues that make mortgaging difficult regardless of Right to Buy status

A mortgage broker familiar with Right to Buy is worth using. The discount means you have built-in equity from day one, but lenders look at the actual purchase price not the market value when assessing affordability.

What to think about before buying

Right to Buy is not always the right answer for every tenant. The advantages are obvious (substantial discount, ownership, ability to sell or improve) but there are real disadvantages:

• Maintenance costs: as an owner you are responsible for repairs that the council previously handled
• Service charges (for flats): you become a leaseholder of the building, paying service charges set by the council freeholder
• Loss of housing security: you no longer have the protection of secure tenancy
• Resale market: ex-council homes sometimes have a smaller resale market than equivalent private builds
• Mortgage cost: you replace a low rent with a mortgage, council tax, insurance, and maintenance

For tenants close to retirement or on low incomes, the long-term running costs may be higher than the existing rent. Take advice from a financial adviser before applying.

Verifying the property

Before exchange, search the address on Property Passport UK at [/search](/search) to see verified data on EPC rating, flood risk, listed status, and the building. Ex-council properties from the 1950s to 1970s sometimes turn out to be non-traditional construction (PRC, BISF, system-built blocks) which affect mortgageability. Property Passport UK shows the EPC construction age band, which is the easiest way to flag a non-standard construction risk before committing to the purchase.

Check any property in seconds with Property Passport UK

Whether you are buying through Right to Buy, Shared Ownership, First Homes, or at auction, the underlying property data matters. Property Passport UK shows verified EPC, sold price history, flood risk, listed status and tenure for every one of the 19.35 million properties in England and Wales. Search any address at [/search](/search).

Related guides

• Right to Buy explained
• Shared Ownership staircasing
• First Homes scheme explained
• Buying at auction UK guide