Right to Buy: Purchase Your Council Home

The Right to Buy scheme allows council tenants to purchase their homes at a discounted price. Recent changes, effective 21 November 2024, have introduced new eligibility criteria and adjusted discount rates.

Who is Eligible for Right to Buy?

To qualify for the scheme, you must:

• Be a tenant for at least 3 years (these do not have to be continuous).
• Live in a self-contained property that is your only or main home.
• Hold a secure tenancy with a public sector landlord (e.g., a council or housing association).

Certain properties, such as those designated for older or disabled individuals, may be exempt. Tenants with serious legal or debt issues may also be ineligible.

Right to Buy Discount Structure (2024)

The maximum discount varies depending on your property’s location:

The discount starts at 35% for houses (or 50% for flats) if you’ve been a tenant for 3 to 5 years. After 5 years, it increases by 1% per year for houses (or 2% per year for flats) up to a maximum of 70% or the regional cash cap, whichever is lower.

Selling Your Home Within 5 Years: Repaying the Discount

If you sell your home within 5 years of purchasing through Right to Buy, you must repay some or all of your discount.

• Within Year 1: 100% of the discount must be repaid.
• Within Year 2: 80% of the discount must be repaid.
• Within Year 3: 60% of the discount must be repaid.
• Within Year 4: 40% of the discount must be repaid.
• Within Year 5: 20% of the discount must be repaid.

The repayment is based on the home’s market value at the time of sale—not the price you originally paid.

Example:

• You purchased your home for £150,000 with a £30,000 discount.
• Three years later, the home is worth £200,000.
• If you sell in Year 3, you must repay 60% of the discount (£30,000 × 60%) = £18,000.
• Since the repayment is based on the new market value, the actual amount payable is £18,000 ÷ £150,000 × £200,000 = £24,000.

How to Apply for Right to Buy

1. Download the RTB1 Application Form from GOV.UK.
2. Complete the form with details about your tenancy and property.
3. Submit it to your landlord, who must reply within a set timeframe.

It is strongly advised to seek independent mortgage advice, financial planning, and legal guidance before proceeding with your Right to Buy application.

Other Key Considerations

• Resale Restrictions: If selling within 10 years, you must first offer the home to your previous landlord or another social landlord at market value.
• Homeowner Responsibilities: You will be responsible for maintenance, repairs, insurance, and service charges if applicable.
• Mortgage Planning: Ensure you have the right mortgage in place and understand repayment obligations.

For full guidance, visit GOV.UK’s Right to Buy page.

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