TL;DR
Right to Acquire - key points
Right to Acquire may allow eligible housing association tenants in England to buy their rented home with a discount. According to GOV.UK, the discount is usually between £9,000 and £16,000 and depends on location.
The discount does not always mean the bank will require no deposit. The lender still assesses income, credit history, property type, purchase value and landlord documents.
Before starting, confirm eligibility with the landlord, discount, purchase price and whether a bank will accept this type of purchase. Right to Acquire may look similar to Right to Buy, but criteria, discounts and documents are different. Check the resale restrictions before accepting the discount.
Right to Acquire vs Right to Buy - what is the difference?
Right to Acquire in England may allow eligible housing association tenants to buy their rented home or flat with a discount. Right to Acquire and Right to Buy have different eligibility and discount rules. Right to Acquire offers a fixed discount based on location, usually lower than under Right to Buy. Both schemes require your landlord to confirm eligibility.
If you are comparing both schemes, also see the Right to Buy guide for council tenants.
Confirm current rules with your landlord and read the official guidance on GOV.UK. The official RTA1 form is also available on GOV.UK.
Who can use Right to Acquire?
You normally need at least three years of qualifying public-sector tenancy. Previous tenancies can count; your current home and housing association must also qualify.
Landlord type
Your housing association must be registered with the Regulator of Social Housing.
Tenancy history
The scheme usually requires at least 3 years of public sector tenancy.
Property type
Your home must be self-contained and your only or main home. The housing association must have built or bought the property after 31 March 1997 using qualifying public funding, or received it through a council transfer after that date. Ask the landlord to confirm that the property meets the funding eligibility rules and check any exclusions.
Previous discounts
If Right to Buy or Right to Acquire was used before, the discount may be lower.
Who cannot apply?
You cannot use Right to Acquire if you have Preserved Right to Buy, are being made bankrupt or have a court order requiring you to leave your home. Council tenants should check Right to Buy instead.
Mortgage
Do I need a deposit for Right to Acquire?
It depends on the bank. The discount reduces the purchase price, but the lender may still require savings or a specific loan-to-value. Loan-to-value (LTV) is the mortgage amount expressed as a percentage of the property value used by the lender. A broker can check which banks accept this type of purchase and how they treat the discount against property value.
If you are not sure whether your income and credit history are enough for a mortgage, it is worth checking affordability and your credit report before the landlord and bank start the full process.
Discount
It can reduce the purchase price, but it does not automatically replace every bank requirement.
Affordability
The bank checks income, commitments, credit history and employment stability.
Documents
Landlord documents, valuation, solicitor work and a full mortgage application will be needed.
What other costs should I budget for?
Budget for legal fees, any mortgage or valuation fees, a survey and any applicable Stamp Duty Land Tax. After purchase, allow for insurance, maintenance and repairs. For a leasehold home, review service charges and planned major works with your solicitor before committing.
Process
What does the Right to Acquire process look like?
- 1
Check whether you qualify
We check landlord type, tenancy length, property type and basic scheme criteria.
- 2
Ask the landlord about purchase
The housing association confirms whether the property can be bought. The official RTA1 form can be downloaded directly from GOV.UK.
- 3
Check the discount and price
The discount depends on location and may be reduced if a public purchase discount was used before.
- 4
Check the mortgage
We compare lenders, deposit, affordability and whether the discount is enough for lender requirements.
- 5
Complete the formalities
After mortgage approval, the solicitor handles the purchase and the bank and landlord finalise documents.
What happens if I sell the home?
Selling within five years normally means repaying some or all of the discount. The calculation takes account of the resale value and how long you have owned the home. During the first ten years, you must first offer the property to your former landlord. Ask your solicitor to explain these conditions before buying.
FAQ
Frequently asked questions
Is Right to Acquire available to every housing association tenant?
No. In England, you generally need at least three years with a qualifying public-sector landlord, and both the housing association and property must meet the scheme rules. Property funding or transfer history can affect eligibility. Ask the association to confirm your position before spending money on a mortgage application.
Where can I download the RTA1 form?
The official RTA1 form can be downloaded directly from GOV.UK. Before sending it, make sure you use the current version and that the landlord confirms the property can be bought under Right to Acquire.
Is Right to Acquire the same as Right to Buy?
No. Right to Buy mainly covers qualifying council tenants, while Right to Acquire covers certain housing association homes and has different discount rules. Some former council tenants instead retain Preserved Right to Buy after a landlord transfer. Ask your landlord which route applies rather than choosing solely by the larger advertised discount.
How much is the Right to Acquire discount?
According to GOV.UK, the discount is usually between £9,000 and £16,000, and the exact amount depends on location. The landlord should confirm the discount after the application.
Can I make a joint application?
You can apply with someone who shares your tenancy, or with up to three family members who have lived with you for the past 12 months. Those family members do not have to be named on the tenancy.
What documents are needed for a Right to Acquire mortgage?
Lenders usually ask for income documents, bank statements, ID, details of commitments and landlord documents confirming the right to buy, price and discount. The exact list depends on the lender and stage.
Do I need a deposit?
It depends on the bank. The discount may help, but it is not always enough as the full deposit. The bank will assess purchase price, property value, income, commitments and credit history.
Will every bank accept Right to Acquire?
No. Each lender has its own criteria for Right to Acquire, discount, deposit, property type and applicant profile. It is worth checking the bank before a full mortgage application.