| Money Guide - Property and Housing Policy |
Key Facts Eligibility: 10 years (up from 3)Max discount: 15% (down from 70%)Discount starts at 5%, rises 1%/yrNew homes exempt: 35 yearsCouncils keep: 100% of receipts2024-25 sales: 7,494Total sold since 1980: 2,036,848 |
In brief: Right to Buy gives eligible council tenants in England the right to purchase their home at a discount. The scheme has sold over 2,036,848 homes since 1980. In April 2026, MHCLG confirmed major reforms: the minimum eligibility period rises from 3 to 10 years; discounts are cut so they start at 5% and rise 1% per year to a maximum of 15% (down from up to 70%); and new social homes will be exempt from the scheme for 35 years. Councils retain 100% of receipts to fund replacements. In 2024-25, 7,494 eligible sales generated 798 million pounds and funded 3,593 replacements. All data from MHCLG and gov.uk.
Last reviewed: June 2026 | Source: MHCLG April 2026 reform announcement + 2024-25 statistics
What Right to Buy is
Right to Buy is a statutory scheme introduced in England in 1980 that gives secure tenants of local authority housing the right to purchase their home at a discount from market value. The scheme was introduced as part of the 1980 Housing Act under Margaret Thatcher and has become one of the most significant policy interventions in the UK housing market. Since its introduction, over 2,036,848 social housing homes have been sold through Right to Buy and related schemes. Most housing association tenants are not eligible for the statutory Right to Buy unless they were living in a council home when it was transferred to a housing association, in which case they have a Preserved Right to Buy.
The April 2026 reforms in detail
MHCLG confirmed in April 2026 that Right to Buy will be reformed to reduce the scale of discounts and protect new social housing supply. The key changes are:
The minimum eligibility period increases from 3 to 10 years. A tenant must now have been a secure council tenant for at least 10 years before they can exercise the Right to Buy, compared with the previous threshold of 3 years. This change reduces the pool of eligible tenants in the short term and allows councils more time to recoup investment in new tenants before a home can be purchased.
Discount levels are substantially reduced. Under the reformed scheme, discounts start at 5% of property value and increase by 1% per year of tenancy, up to a maximum of 15% or the applicable cash cap, whichever is lower. This compares with the previous scheme under which houses attracted discounts starting at 35% rising to 70% and flats attracted discounts starting at 50% rising to 70%, with cash caps that were raised significantly in 2012 to reinvigorate sales. The reduction in maximum discount from 70% to 15% substantially reduces the financial incentive to purchase and the cost to the housing stock.
New social homes will be exempt from Right to Buy for 35 years after construction, extended from the previous 15-year cost floor protection. This is intended to prevent the immediate loss of newly-built social housing and to give councils and housing associations confidence that investment in new social homes will be protected for a generation.
Councils retain 100% of receipts from sales to fund replacement homes. Previously, a significant proportion of receipts was pooled to central government, limiting councils' ability to fund like-for-like replacement. The change to full council retention was introduced in 2024-25 and has been made permanent.
Right to Buy sales in 2024-25
In 2024-25, local authorities reported 7,494 eligible Right to Buy sales, an increase of 7% from 2023-24. This increase largely reflects a spike in applications before the discount reduction announced in November 2024 took effect -- the 21-day window between announcement and implementation led to a rush of applications. From these 7,494 sales, councils received 798 million pounds, an average of 106,500 pounds per sale. The full impact of the November 2024 discount reduction is expected to appear in 2025-26 data.
Of the 2024-25 receipts, 3,593 replacement properties were started or acquired -- 48% of eligible sales. This means that for every 100 homes sold through Right to Buy in 2024-25, fewer than 50 replacement social homes were built or acquired. The long-term consequence is a net reduction in social housing stock: over the period since the scheme's reinvigoration in 2012, more homes have been sold than replaced in most years.
The impact on social housing supply
Since 1980, over 2 million social homes have been sold through Right to Buy schemes. This has contributed to the decline in social housing stock from approximately 5.5 million homes in 1980 to around 4 million today. The loss of social housing to Right to Buy is one of the structural factors driving the homelessness and temporary accommodation crisis. With 132,410 households in temporary accommodation at record levels and social housing waiting lists long and growing, the scale of stock sold at discounts that prevented full replacement has had lasting consequences for housing supply.
The April 2026 reforms -- particularly the 35-year exemption for new homes and the reduced discount structure -- are designed to prevent further net loss of social housing stock from future sales. However, they do not recover the 2 million homes already sold, and the replacement programme remains far short of one-for-one.
Who is eligible for Right to Buy
To exercise Right to Buy under the reformed scheme, a tenant must be a secure tenant of a local authority (council) in England; have held a public sector tenancy (not necessarily with the same council) for at least 10 years cumulatively; be using the property as their only or main home; and the property must not be exempt from Right to Buy (including new social homes built after the relevant date and properties subject to the 35-year exemption). Most housing association tenants are not eligible unless they have a Preserved Right to Buy from when their home was transferred from a council.
The government is also consulting on additional restrictions, including whether those who have previously benefited from a Right to Buy discount or who own another property should be restricted from exercising the Right to Buy again.
Right to Buy in Scotland, Wales and Northern Ireland
Right to Buy was abolished in Scotland in 2016. Wales abolished its Right to Buy scheme for social housing in 2019. Northern Ireland retains a Right to Buy scheme but with different discount levels and terms to England. The April 2026 reforms described on this page apply to England only.
Disclaimer Reform details from MHCLG April 2026 announcement and GOV.UK. Sales statistics from MHCLG 2024-25 release. This page covers England only. Right to Buy rules differ in Scotland, Wales and Northern Ireland. This is general information only and not legal or housing advice. Eligibility depends on individual circumstances; consult your local authority or a housing adviser. |
What is Right to Buy?
Right to Buy gives eligible secure council tenants in England the right to purchase their home at a discount from market value. The scheme has operated since 1980 and over 2,036,848 homes have been sold through it and related schemes.
What are the Right to Buy discount rates in 2026?
Under the April 2026 reforms, discounts start at 5% of property value and increase by 1% per year of tenancy up to a maximum of 15% or the applicable cash cap. This is a major reduction from the previous maximum of 70%.
How long do you need to be a council tenant to buy?
Under the reformed scheme, you need to have held a public sector tenancy for at least 10 years (not necessarily with the same council). This increased from the previous threshold of 3 years in the April 2026 reforms.
Are new council homes exempt from Right to Buy?
Yes. New social homes built after the relevant date are exempt from Right to Buy for 35 years under the April 2026 reforms, extended from the previous 15-year cost floor protection. This is designed to protect investment in new social housing.
Does Right to Buy apply in Scotland and Wales?
No. Right to Buy was abolished in Scotland in 2016 and in Wales in 2019. The April 2026 reforms described on this page apply to England only.
Disclaimer: All figures sourced from MHCLG National Statistics, GOV.UK, or Parliament's House of Commons Library. This page is for information only and not financial, legal or housing advice. |
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