Right to Buy (RTB) has been the headline route into homeownership for English council tenants since 1980. After a wave of reforms in 2024-25, the scheme that's still on the statute book in 2026 is very different from the one a million-plus tenants used over the past four decades. The discounts are smaller, you need to have been a tenant for much longer, and most newly-built social housing is now off-limits for 35 years. If you're a council or housing association tenant considering RTB, this is what's actually available now.
Right to Buy, the brief history
Right to Buy was introduced by the Housing Act 1980, giving secure tenants of local authorities a statutory right to buy their home, with a substantial discount that grew with the length of their tenancy.
From 2012 onwards, maximum discounts were repeatedly increased, peaking at over £127,000 in London by 2024. The scheme moved 2 million+ council homes into private ownership over its lifetime, but with limited replacement, the social housing stock contracted dramatically. By 2024, that imbalance and a perception of the scheme being too generous prompted the most restrictive reform in its 45-year history.
The 2024-25 reforms, what changed
Five major changes have rolled in since late 2024:
- Maximum discounts slashed to pre-2012 levels. New caps are roughly £16,000 to £38,000 depending on region, down from £127,000+ in London.
- Eligibility raised from 3 to 10 years. You now need to have been a public-sector tenant for at least 10 years before you can apply for RTB.
- Newly-built social housing exempt from Right to Buy for 35 years. If your home was built after the reforms came in, RTB doesn't apply.
- Discount taper is steeper. The base discount is 5% at year 10, increasing by 1% per year up to 15% maximum.
- Cost floor extended from 15 to 30 years. Landlords can limit discounts so the sale price doesn't fall below what they spent on building, repairing and maintaining the property within the last 30 years (was 15).
Who is eligible now
To exercise RTB in 2026 you must:
- Be a secure tenant of a local authority (council), not all housing association tenants qualify; some have a similar but different scheme called Right to Acquire.
- Have been a public-sector tenant for at least 10 years (consecutive or non-consecutive across different councils).
- Be living in the property as your only or main home.
- Not have lived in newly-built social housing (built after the reforms) that has the 35-year exemption.
The new discount maths
Discounts are now capped at the lower of:
Worked example: if you've been a tenant for 13 years in a property valued at £180,000 in the Midlands (regional cap £24,000):
- Year 10: 5% discount
- Year 11: 6%
- Year 12: 7%
- Year 13: 8%
- ...up to year 20+: 15% maximum
- AND the regional cash cap (£16k-£38k depending on region)
Worked example, what RTB actually saves you now
Tenant in the Midlands, 13 years in property valued at £180,000:
Compare that to the old rules where you'd have been entitled to up to 70% off (around £126,000), capped at the old regional ceiling. The new figures are very different, for most tenants the RTB saving is now well under £30,000 rather than potentially over £100,000.
- Percentage discount: 8% (year 13) = £14,400
- Regional cap: £24,000
- Lower of the two: £14,400
- Purchase price: £180,000 − £14,400 = £165,600
Is RTB still worth it under the new rules?
It depends on your circumstances. Reasons it can still make sense:
Reasons it might not:
- Worth considering: You're settled in the property, plan to stay long-term, can afford the mortgage, and the discount + price are still below the market value of equivalent homes in your area.
- Worth pausing: You're not sure you'll stay in the property for 5+ years, you'd have to commit most of your savings to deposit and fees, or the mortgage payment would stretch your monthly budget.
The mortgage side, getting lenders comfortable with RTB
Not every lender accepts Right to Buy purchases, some specifically exclude them. Of those that do, criteria vary. Most will lend up to 100% of the discounted price (i.e. you may not need a deposit if the discount IS your deposit). Some will lend higher to release equity, others won't.
RTB mortgage applications are also subject to the same affordability and credit checks as any other mortgage. A broker who knows the RTB lender market is genuinely useful here, the savings on going to the right lender can run into thousands.
The process, how to apply
If you're eligible and want to proceed:
- Request a Right to Buy claim form (RTB1) from your council.
- The council has 4 weeks to confirm whether you qualify (8 weeks for non-secure tenancies).
- If accepted, you'll receive a Section 125 offer within 8-12 weeks: this sets out the price, the discount, and the terms.
- You then have 12 weeks to accept or decline, secure a mortgage, and instruct a solicitor.
- Completion typically follows 4-6 months later.
Right to Buy isn't the windfall it once was, but for the right tenant, in the right home, it can still be a viable path to owning where you already live. The numbers are smaller, the wait is longer, and not every lender takes part. If you've passed the 10-year tenancy threshold and want to know what a Right to Buy mortgage would actually cost you, Debbie at DS Financial can run the affordability and find the RTB-friendly lenders for your area.
General information, not financial advice. Your home may be repossessed if you do not keep up repayments on your mortgage.
Sources: GOV.UK, Right to Buy reform announcement, Public Sector Executive, RTB reform confirmed, Property Passport, Right to Buy 2026 guide.
Stage 4, Finding the right home
This article belongs to searching for the right property and understanding what you are actually buying.
Open Stage 4 →