Last reviewed: June 2026
TL;DR- Right to Buy allows eligible council tenants in England to purchase their home at a discount of up to £136,400 in London and £102,400 outside London (as of 2026 - check GOV.UK for current figures).
- The discount can be used as the deposit, meaning some tenants can purchase with no additional cash deposit.
- Most mortgage lenders accept the Right to Buy discount as a deposit substitute, though specific lender criteria vary.
- If the property is sold within five years, some or all of the discount must be repaid to the council.
How Right to Buy Works
The Right to Buy scheme in England gives eligible council tenants the legal right to purchase their rented home from the local authority at a discount below market value. The discount increases with the length of the tenancy, up to a maximum cap. Once the purchase completes, the former tenant becomes the freehold or leasehold owner of the property, with a mortgage replacing the rental obligation.
Right to Buy was introduced in its current form by the Housing Act 1980 and has enabled over two million council tenants to become homeowners since its launch. The scheme is administered by local councils, which process applications and arrange valuations. Wales ended its Right to Buy scheme in January 2019. Scotland ended its equivalent scheme in 2016. Northern Ireland has its own House Sales Scheme. This article focuses on the England scheme.
Eligibility Criteria
To be eligible for Right to Buy in England, the applicant must:
- Be a secure tenant of a council property.
- Have spent at least three years as a public sector tenant (the three years do not need to be continuous or with the same landlord).
- Not be subject to a bankruptcy order, a debt relief order, or a court order for possession.
- Not have had a Right to Buy application refused in the last three years for reasons related to demolition or redevelopment.
Joint applications are permitted - family members who have lived in the property for the last 12 months can be added to the application even if they are not named on the tenancy.
The Discount and How It Is Used as a Deposit
The Right to Buy discount is deducted from the market value of the property. Most mortgage lenders accept the discount as a deposit substitute, meaning the mortgage is taken on the discounted purchase price. If the market value is £200,000 and the discount is £80,000, the mortgage is taken on £120,000 - an LTV of 60% against the discounted price, or 60% against the price paid. Because lenders lend against the discounted purchase price rather than the market value, the LTV ratios are often very favourable.
Some lenders will lend up to 100% of the discounted purchase price. Others require a small additional deposit from the borrower's own resources. The specific approach varies by lender - a mortgage broker familiar with Right to Buy applications can identify the most suitable lenders.
Repayment of Discount on Early Sale
If the property is sold within five years of the Right to Buy purchase, the owner must repay a proportion of the discount to the council. The repayment is on a sliding scale: 100% in year one, 80% in year two, 60% in year three, 40% in year four and 20% in year five. After five years, no repayment is required. The repayment is calculated as a percentage of the sale price at the time of sale (not the original discount amount), which means if the property has increased in value, the repayment amount may be higher than the original discount.
Frequently Asked Questions
Can I use the Right to Buy discount as my full deposit?
Many lenders accept the Right to Buy discount as the full deposit, meaning no additional cash deposit is required from the borrower. This is one of the key benefits of the scheme for tenants who have limited savings. The lender will typically lend up to 100% of the discounted purchase price. Some lenders require a small additional deposit on top of the discount - this varies by lender.
What happens if the council rejects my Right to Buy application?
The council must respond to a Right to Buy application within four weeks (eight weeks for a housing association). If the council believes the applicant is not eligible, they must provide written reasons. Applicants can appeal to the Residential Property Tribunal (now the First-tier Tribunal, Property Chamber) if they disagree with the council's decision. The GOV.UK Right to Buy guidance sets out the appeals process.
Can I buy with a partner or family member under Right to Buy?
Yes. Right to Buy applications can be made jointly with family members who have lived in the property for at least the last 12 months, even if they are not named on the tenancy. Up to three additional family members can be added to the application. Joint buyers are assessed together for the mortgage affordability calculation.
Does Right to Buy affect my council tax or housing benefit?
Purchasing under Right to Buy ends the tenancy and therefore ends any housing benefit entitlement related to that tenancy. Council tax obligations transfer from the council (as landlord) to the new owner. Purchasers should ensure they can manage the full mortgage payment without housing benefit before proceeding.
