Key Facts
- Primary keyword: right to buy - 5,400 monthly searches, difficulty 34
- Independent editorial guide - no affiliate links, no commission
- Primary sources: FCA, gov.uk, Money and Pensions Service
- Last reviewed June 2026
What Is Right to Buy?
Right to Buy is a government scheme in England giving eligible council tenants the right to purchase their rented home at a discount below market value. Introduced under the Housing Act 1980, it has enabled millions of council tenants to become homeowners.
The discount depends on property type (house or flat) and tenancy length. The maximum discount for houses is 96,000 pounds in London and 87,200 pounds elsewhere in England as of 2024 - figures subject to change and should be verified against current government guidance.
Right to Buy applies to secure tenants of local authority councils and some housing associations in England. The scheme operates differently or is not available in Scotland, Wales and Northern Ireland, where separate arrangements with different terms apply.
Eligibility Criteria
To be eligible, applicants must: be a secure tenant of a council or eligible housing association; have been a public sector tenant for at least three years (not necessarily continuous); use the property as their only or main home; and not be subject to certain legal restrictions or bankruptcy proceedings.
The three-year qualifying period can combine time as a public sector tenant across different properties. Applications can be made individually or jointly with family members who have lived in the property for at least 12 months.
Housing association tenants may be eligible through Right to Acquire (smaller discounts) or Voluntary Right to Buy. Eligibility varies between housing associations and applicants should confirm directly with their landlord and check current Homes England guidance.
How the Right to Buy Mortgage Works
The Right to Buy discount serves as part or all of the deposit. If the discount is 50,000 pounds on a property valued at 200,000 pounds, the buyer needs a mortgage of 150,000 pounds - 75 percent LTV on the discounted price, or 25 percent LTV relative to full market value.
Most mainstream lenders offer Right to Buy mortgages. The property is used as security in the usual way. Affordability is assessed against the borrower's income and committed expenditure.
Some lenders will lend up to 100 percent of the discounted purchase price, allowing the buyer to proceed without a cash deposit if the discount is sufficient. Borrowers wanting additional funds for improvements above the discounted price will need to support the additional borrowing with equity or deposit.
Repaying the Discount if You Sell Early
Selling within five years of purchase requires repayment of a proportion of the discount. The repayment reduces annually: year 1 - 100 percent; year 2 - 80 percent; year 3 - 60 percent; year 4 - 40 percent; year 5 - 20 percent.
The repayment is calculated as a percentage of the actual sale price, not the original discount amount. If the property has increased in value, the cash repayment will be proportionally higher.
Some councils retain a right of first refusal to repurchase the property at market value for ten years after purchase. This should be confirmed in the Right to Buy purchase documentation before agreeing to any sale within that period.
The Application Process
The process begins with the tenant completing a Right to Buy application form (RTB1) submitted to the council landlord. The landlord has four weeks to confirm eligibility (eight weeks if the tenancy is less than three years with the current landlord).
Once eligibility is confirmed, the council arranges a property valuation and issues a Section 125 notice setting out the purchase price, discount and any structural information. The buyer has up to 12 weeks to accept or decline.
After accepting, the buyer arranges a mortgage and instructs a solicitor for the conveyancing. An independent survey is strongly recommended in addition to the council's valuation, because the council's valuation is not a structural survey.
What to Do if the Council Disputes the Valuation
The Section 125 notice setting out the purchase price is the council's formal offer and includes the valuation the council has obtained. Buyers who believe the valuation is too high have the right to request an independent valuation from the District Valuer Service (DVS), which is part of HMRC's Valuation Office Agency.
To request a DVS valuation, the buyer must notify the council within three months of receiving the Section 125 notice. The DVS valuation is free and binding - if it produces a lower figure than the council's valuation, the lower figure applies to the purchase price. If the DVS valuation is higher than the council's figure, the council's original valuation stands. Requesting a DVS valuation carries no downside risk for the buyer.
The DVS valuation process typically takes four to eight weeks. During this time, the buyer's 12-week acceptance period is suspended, meaning the clock does not run down while the independent valuation is being conducted. Buyers who are close to the 12-week deadline when requesting a DVS valuation should confirm with the council that the acceptance period is suspended.
A lower purchase price achieved through the DVS process reduces the mortgage required, potentially improving the loan-to-value ratio and the available mortgage rate. Even a modest reduction of five to ten thousand pounds can materially improve the financial terms of the purchase. The Right to Buy scheme website at gov.uk contains the most current information on discount levels, eligibility criteria and the application process, and should be the first port of call for anyone considering whether to exercise the right.
Disclaimer: This guide is for informational purposes only and does not constitute financial advice. Mortgage products, eligibility criteria and regulations change frequently. Consult an FCA-authorised mortgage adviser before making any decision. Kael Tripton Ltd is not authorised or regulated by the Financial Conduct Authority.
Frequently Asked Questions
How much discount can I get under Right to Buy?
The maximum discount is 96,000 pounds in London and 87,200 pounds elsewhere in England as of 2024. The actual discount depends on tenancy length and property type. These figures change and should be verified from current government guidance.
Do I need a deposit for a Right to Buy mortgage?
The discount itself can serve as the deposit. Some lenders will lend up to 100 percent of the discounted purchase price if the discount creates an acceptable LTV relative to the full market value.
Can I sell my Right to Buy property immediately?
You can sell at any time, but selling within five years requires repayment of a proportion of the discount, calculated on the actual sale price. The repayment reduces from 100 percent in year 1 to 20 percent in year 5.
Is Right to Buy available in Scotland and Wales?
Right to Buy in Scotland was abolished in 2016. In Wales, the scheme closed to most tenants in 2019. Separate Right to Acquire and Voluntary Right to Buy arrangements operate in some cases.
Can family members join the application?
Yes. Family members who have lived in the property for at least 12 months can join as joint purchasers. Their income can be included in the mortgage affordability assessment.
Last reviewed June 2026 by Chandraketu Tripathi, Finance Editor, Kaeltripton.com
