Right to Buy in England: buying your council home

Right to Buy can allow some eligible tenants in England to buy their council home at a discount. It is important to check the current rules and the full cost of ownership before applying.

This article covers England. Right to Buy ended in Scotland and Wales. Northern Ireland has a separate Housing Executive House Sales Scheme, so its eligibility and discounts should not be assumed to match England’s.

Who can apply for Right to Buy in England?

You may be eligible if the property is your only or main home, it is self-contained, you have a secure tenancy and you have built up at least three years with a public-sector landlord. Those tenancy periods do not have to be continuous. The GOV.UK Right to Buy eligibility guidance explains the current starting points.

Someone who shares your tenancy may apply with you. Up to three qualifying family members who live with you may also be able to join an application. If your council home was transferred to another landlord, you may instead have Preserved Right to Buy. Ask the landlord to confirm which scheme and rules apply to you.

There are important exceptions. Possession proceedings, certain insolvency or debt arrangements, a court suspension, demolition notices and the type of property can affect a claim. Some specialist housing for older or disabled people is excluded. Rent arrears do not automatically stop you applying, but they can prevent the purchase from completing. This is a general guide, not a decision on an individual tenancy.

How the England discount works

For current applications in England, a house discount starts at 35% after three to five qualifying years and rises by one percentage point for each additional year. A flat discount starts at 50% and rises by two percentage points per additional year. In both cases, the discount cannot exceed 70% of the home’s value.

The percentage is also limited by a regional cash cap. Current caps range from £16,000 to £38,000, with local variations: London is generally capped at £16,000, while Barking and Dagenham and Havering have a £38,000 cap. A previous Right to Buy discount and the cost-floor rules can reduce the amount further. Check the official discount table for the current cap that applies to your area.

The older £102,400 and £136,400 caps apply only to qualifying applications made before 21 November 2024. Do not rely on old worked examples or annual-indexation claims when budgeting for a new application.

Applying: from RTB1 to the landlord’s offer

Start by sending an RTB1 application form to your landlord. It must decide whether you have the right to buy, normally within four weeks, or eight weeks if it has been your landlord for less than three years. These are stages in the process, not a promise of an overall completion date.

If the claim proceeds, the landlord issues its section 125 offer. This sets out the valuation, discount, price and relevant costs. You have time to consider it, can question the valuation within the permitted period, and may withdraw. Before committing, arrange independent legal advice, consider a survey where appropriate and make sure your funding is in place.

Mortgage, ownership and resale costs

You are responsible for arranging finance. A lender may consider your income, outgoings, credit profile, deposit or discount, and the property itself before deciding whether to lend. Mortgage approval, rates and the amount available are not guaranteed.

After completion, you are responsible for ownership costs. These can include repairs, buildings insurance and, for a leasehold flat, service charges or major works bills. If you take a mortgage, missed repayments can put your home at risk of repossession.

Selling can also have consequences. If you sell within five years, you will normally have to repay some or all of the discount: 100%, 80%, 60%, 40% or 20% in years one to five respectively. The repayment is generally linked to the resale value. During the first ten years, you normally have to offer the property first to your former landlord or another local social landlord. There can be exceptions and additional rural restrictions, so take legal advice for your circumstances.

If you would like to discuss how a mortgage could fit your circumstances, discuss your mortgage options. You can also read our guide to buying a property in the UK step by step for the wider buying process.