12 min read
The Right to Buy scheme can help tenants become homeowners. If you're a council or housing association tenant, find out if you might qualify for the scheme.
)
Are you a council or housing association tenant? Right to Buy can reduce the cost of buying your home and make a big difference as to whether you can afford it. It’ll also help you secure a suitable mortgage. Find out more on the scheme, eligibility criteria and the application process.
In this article
Right to Buy is a government scheme that gives eligible council and housing association tenants the legal right to purchase their home at a discounted price.
There are a few criteria to be eligible for the scheme. You can buy your council home if:
It’s your only or main home, meaning you’re living in the property
It’s self-contained – you don’t share any rooms with people outside your household
You’ve been a secure council tenant for over three years – it doesn’t have to be three years in a row
You don’t have any legal issues with debt such as unmanageable debts or a possession order against you
You don’t live in sheltered housing or other housing particularly suitable for elderly or disabled people
You might be able to buy your home with:
Someone who shares your tenancy
Your spouse or civil partner
Up to three family members who’ve been living with you for the past 12 months – even if they’re not on your tenancy agreement
You don’t have the Right to Buy your home if it:
Is suitable for occupation by elderly people
Was let to you for occupation by a person aged 60 or over – even if they weren’t tenants
Was first let before 1 January 1990
Is due to be demolished
For more information on other exceptions for this scheme you can download the government’s Right to Buy guide on gov.uk.
Since 21 November 2024, if you’re eligible for the scheme, the discount ranges between £16,000 and £38,000 depending on the region. Any applications before this received a discount of up to £102,400 across England and £136,400 in London.
| Region | Maximum discount | ||
|---|---|---|---|
| South East (exclusions apply*) | £38,000 | ||
| Eastern (exclusions apply*) | £34,000 | ||
| South West | £30,000 | ||
| North West | £26,000 | ||
| West Midlands | £26,000 | ||
| East Midlands | £24,000 | ||
| Yorkshire and the Humber | £24,000 | ||
| North East | £22,000 | ||
| London (exclusions apply*) | £16,000 |
*Some local authority areas within these regions have different maximum caps - see the full Right to Buy discount breakdown on gov.uk.
The size of the discount depends on various factors such as how long you’ve been a public sector tenant for, type of home and its value.
Here’s how to work out how much discount you could get:
If you’re living in a house, you’ll get a 35% discount on your home’s market value (up to your region’s maximum cap).
If you’re living in a flat, you’ll get a 50% discount on your property’s value (up to your region’s maximum cap).
If you’re living in a house, your discount increases by 1% for every additional year you’ve been a public sector tenant, up to a maximum of 70% or the regional cap (whichever is lower).
If you’re living in a flat, the discount increases by 2% for each additional year you’ve been a public sector tenant, up to maximum of 70% or the regional cap (whichever is lower).
To get your Right to Buy discount:
Step 1: Fill out the RTB1 application form
Step 2: Print it and sign it
Step 3: Send your application by recorded delivery to your landlord
It’s recommended you keep a completed copy of the form for yourself.
The information you’ll need to fill out on the form includes:
The full address of the property you want to buy
The name of your landlord
The full names of everyone listed on the tenancy agreement
The full names of family members who wish to share the Right to Buy
Information about your current and previous tenancies
Details of any other properties you have bought at discount through any Government scheme, including Right to Buy
Details of any improvements you’ve made while living at the property
A signature from each tenant
Your landlord must make a decision within four weeks of getting your application. If your application is successful, they’ll send you an offer within eight and 12 weeks – depending on whether you’re purchasing a freehold or leasehold property. However, if your landlord doesn’t agree to sell, they must explain the reasons why.
If you need a mortgage to purchase your home under the scheme, you may need to shop around for a lender that offers specialist products. Most mortgage providers understand the scheme and can help finance your purchase.
Most mortgage providers require a deposit when purchasing through the scheme. In some cases, tenants can use the discount as part or all of the deposit. Requirements vary by lender, so confirm with your chosen mortgage provider.
By the time you need a conveyancer, you’ll be well along with your purchase under the scheme. After agreeing the terms of the offer notice you receive from your landlord, you’ll need to get your mortgage in place and instruct a conveyancer to transfer legal ownership, which is known as conveyancing. Your legal professional will manage your purchase from here, so you may need to choose a specialist conveyancing solicitor who’s experienced in dealing with Right to Buy transactions.
There are some differences compared to regular purchases, such as extra paperwork and dealing with the council. However, your conveyancer will be there to help sort everything out, such as, the title deeds on your home and advising you on certain rights and obligations.
You also don’t usually have to exchange contracts with your Right to Buy purchase, so your conveyancer will work straight towards completion. They’ll arrange for you to sign the transfer deed and help you settle any issues regarding outstanding or overpaid rent. They’ll also explain what would happen if you decided to sell your home within five years of buying it through the scheme, as you’ll have to repay the council a portion of the discount you received.
Find out more about what a conveyancer does or get an online quote for your conveyancing.
The Preserved Right to Buy is a great opportunity that allows eligible tenants to purchase their home at a discount, even if the ownership has shifted from the council to a private landlord, like a housing association.
The following criteria need to be met:
The property was originally council-owned
The council sold the property to a different landlord while you were living there
You were a tenant when the property changed hands
This scheme is designed to protect your rights and make home ownership more accessible, giving you the chance to own your home even if the management of your property has changed.
The Right to Acquire scheme lets eligible housing association tenants buy their home at a discount. You must have been a public sector tenant for at least three years with a landlord that is registered with the Regulator of Social Housing.
Eligible landlords include:
Housing associations
Councils
The armed services (for military-provided housing)
NHS trusts and foundation trusts (for staff housing)
Your property must be self-contained and your only home. This scheme is only available to housing association tenants, not council tenants.
Yes. The scheme is available in England and Northern Ireland. However, it has ended in Scotland and Wales, where different rules apply.
The scheme closed in Wales in January 2019.
There have been petitions to reinstate the scheme in Wales, however they have been rejected. While the Right to Buy scheme is gone, other homeownership schemes available in Wales, including Shared Ownership, Help to Buy, and Homebuy.
The scheme ended in Scotland on 31 July 2016 along with the Right to Acquire scheme.
The main reason for ending the scheme was to protect and enhance the existing stock of social rented homes, ensuring that social landlords could continue to help people in need of social housing.
The discount depends on your property type, region, and how long you’ve been a public sector tenant. Houses start at 35%, flats 50%. After five years as a tenant, the discount increases each year up to 70% or the regional maximum cap, whichever is lower. Maximum discounts vary by region and area; see gov.uk for full details.
If you sell your home within five years of buying it, you’ll need to repay all or part of the discount you received. The amount you pay back reduces each year of ownership and is calculated on the market value of the house at the time of selling.
1st year: 100% of the discount
2nd year: 80%
3rd year: 60%
4th year: 40%
5th year: 20%
For example, if you bought a house valued at £120,000 with a 40% discount and are selling it 40 months later (just over three years) for £150,000, you first calculate 40% of the current market value (£150,000), which is £60,000. Then, because you’re in the third year of ownership, you repay 60% of that amount, which is £36,000.
After five years, there’s no repayment required, however within the first 10 years the council or housing association has the right of first refusal. This means they can buy the property at market value before you sell it on the open market.
To buy your council home under the government scheme, it must be your only or main residence which you live in. The property needs to be self-contained, and you must have been a secure council tenant for at least three years (not necessarily consecutive). You won’t be eligible if you have serious debt or legal issues, or if the home is sheltered housing or designed for elderly or disabled residents.
The whole process usually takes at least six to nine months, though it can take longer if there are disputes or delays along the way. There are specific timeframes that both you and the council or housing association must follow: for example, the council must respond to your initial application within four or eight weeks (depending on your local authority), and you then have 12 weeks to respond to their offer. If you disagree with the initial offer, this can extend the process.
The conveyancing stage generally takes 12 to 24 weeks, as Right to Buy purchases involve additional legal checks and documentation compared to a standard home sale.
Yes. You can buy your council home while on benefits. However, owning your home means more responsibilities; you’ll need to find a way to finance this big investment. Make sure you research mortgages and ensure you can afford your repayments – taking into consideration the general living costs, as well as repairs and maintenance. And of course, keep in mind that circumstances, interest rates and house prices may change.
Another thing you need to consider is that if you purchase your house through the scheme, you won’t be eligible for housing benefits. Find out more about the cost of buying a house.
Get in touch with one of the team
If you would like to speak to your conveyancer, please log in to your eWay account where you can find their contact details.
Log in to eWayMonday - Friday
9am - 5pm
If you would like to discuss a quotation you have received please call our Move Specialists on
0333 234 4425Monday - Friday
9am - 5pm
If you would like to email us, please send it to the following email address:
quotations@myhomemoveconveyancing.co.ukMonday - Friday
9am - 5pm
)
)
)
)
)
)
)
)
)