Right to Buy lets many council tenants buy their home at a discount, though the scheme has changed significantly. This guide explains Right to Buy: who can use it, how the discount works after recent reforms, using the discount as a deposit, the mortgage, and the things to weigh before buying your council home.
What Right to Buy is
Right to Buy lets eligible council tenants in England buy the home they rent at a discount on its market value. The scheme has helped many tenants become homeowners. It applies to secure council tenancies, with a related scheme, Right to Acquire, for some housing association tenants. The discount is the central feature, reducing the price and so the deposit and mortgage you need to buy your home.
Who is eligible
To use Right to Buy, you generally need to be a secure council tenant and to have been a public sector tenant for a qualifying period. Recent reforms have lengthened this qualifying period, so you must have been a tenant for longer to qualify. There are also exclusions, such as certain new-build properties. Checking the current eligibility rules, which have tightened, is an important first step before relying on Right to Buy.
The discount after reform
The discount depends on how long you have been a tenant, up to a maximum cash discount. Following reforms, the maximum cash discount has been reduced, now ranging roughly between £16,000 and £38,000 depending on the area, much lower than the higher limits that applied previously. So while the discount can still be significant, it is smaller than before. Confirming the current maximum for your area is essential, as these figures have changed.
Using the discount as a deposit
A valuable feature is that some lenders accept the Right to Buy discount as your deposit, meaning you may not need to save a separate deposit, as our guide to deposits explains. This can make buying possible for tenants who could not otherwise save a deposit. So even with the reduced discounts, Right to Buy can still open a route to ownership by serving as the deposit on your purchase.
Mortgages for Right to Buy
You usually need a mortgage to cover the discounted purchase price, less any discount used as deposit. Not all lenders offer Right to Buy mortgages, and they assess affordability as normal, so you must be able to afford the repayments. A broker familiar with Right to Buy can help find a suitable lender. As with any purchase, the mortgage must be affordable, regardless of the discount on the price.
Things to weigh
Before buying, weigh the responsibilities of ownership: repairs and maintenance become yours, flats carry service charges that can be high, and you must afford the mortgage and running costs. There are also rules requiring you to repay some or all of the discount if you sell within a set period after buying. Considering these alongside the discount helps you decide whether buying your council home is right for you.
Repaying the discount and reforms
If you sell within a certain period after buying through Right to Buy, you may have to repay some or all of the discount, and recent reforms have changed these rules, including longer periods in some cases. The government has also introduced new-build exemptions and other changes. Because the scheme has been reformed and may change further, checking the current rules before proceeding is especially important for Right to Buy.
Right to Acquire for housing association tenants
A related scheme, Right to Acquire, lets some housing association tenants buy their home at a discount, though the discounts are generally smaller than Right to Buy and eligibility differs. If you rent from a housing association rather than a council, Right to Acquire may be the relevant scheme. Checking which scheme applies to your tenancy, and its current rules, is important, as the two work differently despite their similar aims.
An example of the discount
Suppose your council home is worth £180,000 and you qualify for a discount of £30,000. You would buy it for £150,000, needing a mortgage and any deposit based on that lower figure. If a lender accepts the discount as your deposit, you might need little or no separate deposit. This shows how the discount reduces the price, though the exact maximum depends on your area and how long you have been a tenant.
The costs of owning
Buying your council home turns you from a tenant into an owner, with new costs: building repairs and maintenance become your responsibility, and flats usually carry service charges and major works bills that can be substantial. You also pay the mortgage and buildings insurance. Budgeting for these ongoing costs, on top of the mortgage, is essential, as they are a real change from paying rent with repairs handled by the council.
Is Right to Buy right for you?
Right to Buy can suit long-standing tenants who want to own their home, can afford the mortgage and running costs, and value the discount. It suits less well those who might move soon (given rules on repaying the discount), cannot comfortably afford ownership, or face high service charges. Weighing the discount and the pride of ownership against the costs and commitments helps you decide whether buying your council home is right.
Getting advice
Because Right to Buy has detailed and changing rules, and involves a significant financial commitment, advice is valuable. A mortgage broker can find a suitable Right to Buy mortgage and explain using the discount as a deposit, while the council and official sources explain eligibility and the current discount. Given the stakes and the recent reforms, getting guidance helps you proceed with a clear understanding of the scheme and the costs.
Check the current rules
Right to Buy has been reformed more than once, with reduced discounts, a longer qualifying period and new-build exemptions, and further changes are possible, so it is essential to check the current rules and discount for your area before relying on the scheme, as our guide to government schemes notes. Confirming the latest position through official sources ensures your plans reflect the scheme as it stands when you apply.
For long-standing tenants who can comfortably afford ownership, Right to Buy can still be a valuable route to owning the home they have lived in for years, but the reduced discounts and tighter rules mean it deserves careful thought and a check of the current figures before going ahead.
Taken with clear eyes and current figures, it remains one of the few ways a long-term tenant can step straight into ownership of a home they already know well.
In short
Right to Buy lets eligible secure council tenants buy their home at a discount based on how long they have been a tenant, up to a maximum cash discount now reduced to roughly £16,000 to £38,000 depending on the area. Some lenders accept the discount as your deposit. You still need an affordable mortgage, and must weigh repairs, service charges and rules on repaying the discount if you sell. The scheme has been reformed, so check current rules.
Where to get help and next steps
Read our guides to government schemes overview, how much deposit you need, and low-deposit buying options. This is general information, not mortgage or financial advice; scheme rules change, so check current details.