Can I Buy my Council House? Right to Buy With Up to 70% Off
Updated: March 2025
Yes, if you’re a council tenant, you may be eligible to buy your home through the Right to Buy scheme, which offers substantial discounts based on your length of tenancy. This government scheme allows long-term tenants to transition from renting to homeownership, often at a significantly reduced price.
Key Takeaways:
- Up to 70% discount is available for qualifying tenants.
- You must have been renting from a public sector landlord for at least 3 years (not necessarily consecutive).
- Reselling within 5 years may require repaying some of your Right to Buy discount.
What is Right to Buy Scheme?
Right to Buy is a government scheme in England that allows eligible council tenants to purchase their rented home at a discount, making homeownership more accessible. Introduced in the 1980s, the scheme aims to help long-term public sector tenants transition from renting to owning.
Am I Eligible to Buy My Council House?
To qualify for Right to Buy, you must meet the following key criteria:
- Secure tenancy: You must be a council or public sector tenant with a secure tenancy agreement.
- Primary residence: The property must be your main home and self-contained.
- Three years with a public sector landlord: You must have rented from a council, housing association, or other public sector landlord for at least three years (not necessarily consecutive).
Preserved Right to Buy: Do You Qualify?
If your council home was transferred to a housing association or private landlord, you may still be able to buy it under the Preserved Right to Buy. This applies if:
- You were a council tenant when the transfer happened.
- You remained a tenant in the same home after the transfer.
Your landlord can confirm whether Preserved Right to Buy applies to your home.
Key Exceptions: Who Can’t Use Right to Buy?
You cannot buy your council house under Right to Buy if:
- You live in retirement housing (sheltered or adapted homes for elderly or disabled residents).
- Your property is scheduled for demolition or redevelopment.
- You are a housing association tenant without Preserved Right to Buy.
- You are currently facing eviction or have significant rent arrears.
If you're unsure about eligibility, speak to your landlord before applying.
How Much Discount Can I Get?
The Right to Buy scheme offers discounts on council homes, with the exact amount depending on how long you’ve been a tenant and the type of property you’re buying.
Discount Rates for Houses and Flats
- Houses: The discount starts at 35% after three to five years of tenancy. After five years, it increases by 1% per additional year, up to a maximum of 70% or the cash cap, whichever is lower.
- Flats: The discount starts at 50% after three to five years. It increases by 2% per year after five years, up to a maximum of 70% or the cash cap.
Maximum Discount Caps for 2025
- England (excluding London) – £102,400
- London boroughs – £136,400
If the percentage discount exceeds these caps, the maximum cash amount applies instead.
Right to Buy Discount Example Calculations
| Property Type | Years as Tenant | Property Value | Total Discount | Final Purchase Price |
|---|---|---|---|---|
| House | 10 years | £200,000 | 40% (£80,000) | £120,000 |
| Flat | 15 years | £300,000 | 70% (£210,000, capped at £136,400) | £163,600 |
| House | 20 years | £180,000 | 50% (£90,000) | £90,000 |
Additional Discount Rules
- The cap on discounts increases annually in line with inflation.
- If you sell within five years, you may have to repay some or all of the discount.
- If your landlord has recently spent money on improvements, your discount may be reduced.
Use a Right to Buy calculator or check with your local council to get a personalised estimate.
Expert advice from our Property Expert Paul:
Right to Buy can be a fantastic opportunity for long-term tenants, but many people don’t realise how quickly the discounts can add up. I’ve seen buyers get over £100,000 off their home, making homeownership possible when they thought it was out of reach. However, it’s important to plan ahead—selling too soon could mean paying back a large portion of the discount.
My advice? If you’re considering Right to Buy, think long-term and make sure it’s the right move for your future.
How do I Buy my Council House? Step-by-Step Process
Below is a simple step by step process on how to buy your council house.
1. Check Eligibility: Start by confirming with your landlord.
2. Submit Application (RTB1 Form): How to fill it out and send it.
3. Landlord’s Response: Timeframes and possible outcomes.
4. Property Valuation & Offer: Understanding the price breakdown.
5. Arranging Finance: Mortgage vs. cash purchase considerations.
6. Final Decision & Legal Process: Accept, negotiate, or appeal valuation.
Our Property Advisory Team has helped countless buyers navigate this transition smoothly, ensuring they avoid common pitfalls and have the right support from start to finish.
Costs & Financial Considerations
Buying your council house through Right to Buy can be a great opportunity, but there are costs beyond the purchase price that you need to plan for. According to Neweconomics, 41% of all council homes sold under the Right to Buy scheme are now owned by private landlords, highlighting a significant shift in property ownership dynamics.
This tells us it is pretty common and if you're thinking about it, it's very much doable.
Upfront Costs
- Stamp Duty: If the property price exceeds £250,000, stamp duty applies. First-time buyers may qualify for relief.
- Solicitor Fees: Legal costs for handling the purchase typically range from £800 to £1,500.
- Land Registry Fees: This varies based on the property price but is usually between £100 and £500.
Mortgage vs. Cash Purchase
Most buyers will need a mortgage to purchase their council home, but if you have enough savings, you may be able to buy outright with cash. Here’s how each option works:
The majority of Right to Buy buyers take out a mortgage. Lenders will assess your income, credit history, and the property’s valuation before approving a loan. Some lenders offer Right to Buy mortgages with no deposit, allowing you to borrow the full discounted price. However, you’ll need to factor in monthly repayments, interest rates, and lender fees.
Do I Need a Deposit to Buy My Council House?
In most cases, you may not need a deposit to buy your council home through Right to Buy. Many lenders offer Right to Buy mortgages with no deposit, as the discount on your home can act as the deposit instead.
However, some lenders still require a deposit, especially if the discounted price is significantly lower than the property’s market value. If you have poor credit or a high loan-to-value (LTV) ratio, you may need to provide a deposit to secure a mortgage.
Can I Buy My Council Home Cash?
As a public sector tenant, you can pay for your home in cash, although most tenants cannot pay in cash and get a mortgage for the purchase.
It is important to remember that as well as securing a mortgage, there will be other costs with buying your property, including solicitor fees, VAT, and the Land Registry fee.
Ongoing Costs to Consider
- Maintenance & Repairs: As a homeowner, all future repairs and maintenance are your responsibility, including structural fixes, boiler servicing, and general upkeep.
- Service Charges (for Flats): Leasehold properties often come with annual service charges and ground rent, which can add hundreds or even thousands of pounds in costs each year.
Selling Within 5 Years: Clawback Rules
If you sell your home within five years of purchasing through Right to Buy, you may have to repay part or all of the discount you received:
- Selling within the first year: 100% of the discount must be repaid.
- Selling in years two to five: The repayment reduces by 20% each year. According to Inside Housing, between 2015 and 2022, over £485 million in Right to Buy discounts had to be repaid by buyers who sold their property within the 5-year restriction period
Additionally, if you sell within 10 years, you must first offer the property to your former landlord or another social housing provider at market value.
A Final Word: Is Right to Buy for You?
Right to Buy can be a great opportunity for council tenants to step onto the property ladder at a discounted price, but it’s not the right choice for everyone. While the savings can be significant, homeownership comes with new financial responsibilities, including maintenance, repairs, and potential service charges for flats. If you plan to sell within five years, you may also have to repay part of the discount, so it’s important to think long-term before making a decision.
Before applying, consider your finances, future plans, and whether you can secure a mortgage if needed. Speaking to a mortgage broker or financial advisor can help you assess your options. If you’re unsure whether Right to Buy is the best path for you, take the time to weigh the benefits against the costs to ensure homeownership is the right move for your situation.
