Right to Buy Guide UK — Council House Purchase

Right to Buy lets council tenants purchase their homes at a discount. Here’s how it works.

What Is Right to Buy?

Overview

Feature	Details
Who	Secure council tenants
What	Buy your council home
Discount	Up to 70% off market value
Cash cap	£102,400 (£136,400 London)
Qualification	3+ years as secure tenant

Applies In

Country	Scheme
England	Right to Buy
Wales	Abolished (2019)
Scotland	Abolished (2016)
Northern Ireland	House Sales Scheme

Eligibility

Must Have

Requirement	Detail
Secure tenancy	Council tenant
3+ years	As public sector tenant
Main home	Only/principal residence
Not bankrupt	Or restrictions

Counting Years

Time Counts If
Council tenant	Current or previous
Housing association	Some public sector
Armed forces housing	Counts
Combined tenancies	Add together

Not Eligible

Situation	Can’t Apply
Starter tenancy	Until secure
Introductory tenancy	Until secure
Housing association	Usually Right to Acquire instead
Bankruptcy	Orders in place
Court possession order	Against you

Exempt Properties

Not Eligible	Examples
Sheltered housing	For elderly
Supported housing	With care services
Scheduled demolition	Regeneration areas
Rural exemptions	Some villages
Charitable housing	Some trusts

Discount Calculation

Houses

Years as Tenant	Discount
3 years	35%
4 years	36%
5 years	37%
Each extra year	+1%
Maximum	70%

Flats

Years as Tenant	Discount
3 years	50%
4 years	52%
5 years	54%
Each extra year	+2%
Maximum	70%

Maximum Cash Discount (2025/26)

Area	Maximum
Outside London	£102,400
London	£136,400

Discount Examples

Scenario	Calculation
House, 5 years, worth £200,000	37% = £74,000 discount
Flat, 10 years, worth £180,000	60% = £108,000 discount
But flat over cap (London)	Discount capped at £136,400
Flat 10 yrs, £180k (non-London)	Capped at £102,400

Cost of Buying

What You Pay

Market Value £200,000	House (5yrs)	Flat (10yrs)
Discount %	37%	60%
Discount £	£74,000	£120,000
Purchase price	£126,000	£80,000

Additional Costs

Cost	Typical Amount
Legal fees	£1,000-2,000
Mortgage fees	£0-1,000
Survey	£300-600
Land Registry	~£200-300
Service charges (flat)	Ongoing
Maintenance	Your responsibility

Financing Your Purchase

Mortgage Options

Type	What It Means
High LTV	Some at 100% of discounted price
Discount as deposit	Treated as your equity
Standard mortgage	With cash deposit
Family help	Gifts etc

Example Finance

£200,000 House	Amount
Market value	£200,000
Discount (37%)	£74,000
Purchase price	£126,000
Mortgage 100%	£126,000
Your cash	£0 (discount = deposit)

Affordability Check

Lender Checks
Your income	Affordability
Credit history	Score and history
Other debts	Commitments
Outgoings	Monthly costs

If Can’t Get Mortgage

Option	Detail
Improve credit	Before applying
Save deposit	Reduce LTV
Family guarantee	Some lenders accept
Equity share	Some councils offer

Application Process

Steps

Stage	Timeline
1. Submit RTB1 form	Start
2. Council decision	Within 4 weeks
3. Valuation	Section 125 notice (within 8 weeks)
4. Accept/negotiate	12 weeks to decide
5. Arrange mortgage	If buying
6. Legal process	Conveyancing
7. Complete	Purchase

RTB1 Form

What to Include
Your details	Names, address
Joint purchasers	If any
Tenancy details	Years, dates
Previous tenancies	Public sector
Declaration	Signed

Valuation Disputes

If You Disagree	Options
Get own valuation	At your cost
Request District Valuer	Independent
Negotiate	With council

Selling After Purchase

Repaying Discount

If Sell Within	Repay
Year 1	100% of discount
Year 2	80% of discount
Year 3	60% of discount
Year 4	40% of discount
Year 5	20% of discount
After 5 years	Nothing

Repayment Calculation

Based On	Current Market Value
Not original discount	Percentage of current value
So if value increases	Repay more
If value decreases	Repay less

Example

Original Purchase	Sale After 3 Years
Market value	£200,000
Discount (37%)	£74,000
You paid	£126,000
Current value	£230,000
Discount %	37%
Clawback (60% of 37%)	~£51,060

Right of First Refusal

Within 10 Years	Must Offer
To former landlord	Before open market
Time limit	8 weeks to respond
If they decline	Sell normally

Becoming an Owner

New Responsibilities

Now Your Problem
Repairs	Your cost
Maintenance	Ongoing
Insurance	Buildings
Service charges (flat)	Can be high
Major works (flat)	Can be thousands

Flats — Special Considerations

Issue	Detail
Service charges	Annual fees
Major works	Roof, windows, lifts
Sinking fund	Contributions
Potentially expensive	Budget for this

Financial Comparison

Renting	Owning
Rent	Mortgage + interest
Repairs included	Repairs your cost
No capital gain/loss	Property value risk
Simple	More complex

Preserved Right to Buy

If Your Home Transferred

Situation	Your Right
Council transferred to HA	May have Preserved RTB
Same discounts	As normal RTB
Check	With your landlord

Right to Acquire

Housing Association Tenants

Different Scheme
Smaller discounts	£9,000-16,000
Based on region	Not tenancy length
Similar process	To RTB
Not as generous	As RTB

Is It Right for You?

Consider Buying If

Factor	Benefit
Plan to stay	Make the most of discount
Financially stable	Can afford ongoing costs
Property condition	Good, low maintenance
Not a flat	Avoid service charge risk

Consider Not Buying If

Factor	Risk
Uncertain future	May need to sell soon
Flat with high service	Costs can be prohibitive
Poor property condition	Expensive repairs
Can’t afford	Mortgage and costs

Summary

Key Numbers

Item	Figure
Minimum qualifying	3 years
House discount start	35%
Flat discount start	50%
Maximum discount	70%
Cash cap (outside London)	£102,400
Cash cap (London)	£136,400

Process Timeline

Stage	Weeks
Council decision	4 weeks
Valuation notice	8 weeks
Your decision	12 weeks
Total minimum	~6-9 months

Checklist

Before Applying	Done?
Check eligibility	☐
Calculate discount	☐
Mortgage agreed	☐
Budget for all costs	☐
Consider ongoing costs	☐
Understand clawback	☐
Submit RTB1	☐