Right to Buy Guide UK

Right to Buy gives council tenants in England the legal right to buy their home at a significant discount. Depending on how long you have been a tenant, you could get up to 87,200 GBP off the market value (or 116,200 in London). It is one of the best routes onto the property ladder for eligible tenants.

Eligibility

You qualify if: you are a secure council tenant, you have been a public sector tenant for at least 3 years (does not have to be the same property), your home is your only or main residence, and the property is self-contained. You do NOT qualify if you have an undischarged bankruptcy, a possession order, or live in sheltered housing for elderly or disabled people.

How Much Discount?

Houses: 35% discount after 3 years as a tenant, rising by 1% per year to a maximum of 70%. Flats: 50% discount after 3 years, rising by 2% per year to a maximum of 70%. The maximum discount is capped at 87,200 GBP (116,200 in London) regardless of percentage.

The Process

Submit an RTB1 form to your council. They must respond within 4 weeks (8 for leaseholds). If accepted, they send an offer (Section 125 notice) with the price and discount. You then have 12 weeks to accept or decline. The whole process typically takes 3-6 months.

Financing

You need a mortgage for the discounted price. Many mainstream lenders offer Right to Buy mortgages, some at up to 100% of the discounted price (meaning zero deposit needed). Your track record of paying rent on time counts in your favour for mortgage applications.

Things to Watch

Repay discount if you sell within 5 years: Year 1 = repay 100%, reducing by 20% each year. Pre-emption: If you sell within 10 years, you must offer it back to your council first. Service charges: If buying a flat, you become liable for a share of building maintenance — this can be thousands per year. No Right to Buy in Scotland or Wales — different schemes exist there.