The Right to Buy scheme
How to buy your council flat or house at a discount – the rules and the steps.
Right to Buy lets you buy a flat or house from a council or another public body, such as a housing association or NHS trust, on favourable terms. The price is discounted, and the size of the discount depends on where you live, the type of property and how long you have been a tenant. The longer you've rented, the bigger the discount. The scheme runs in England; it has been abolished in Scotland and Wales.
Who can apply?
To use Right to Buy, you need to have rented from a public sector landlord for at least 3 years and live in the property as your main home. One important advantage of buying from the council is that you may be able to get a mortgage without paying a deposit. It's still worth having some money put aside for the costs of the purchase.
What decides the discount?
- how long you have been a public sector tenant,
- the type of property – a flat or a house,
- the value of the property.
If you are buying with someone else, the years of whichever of you has been a public sector tenant the longest are the ones that count.
Since 21 November 2024, the maximum discount in England has been between £16,000 and £38,000, depending on the council area (£16,000 in most London boroughs). The government has announced further changes, including raising the minimum tenancy from 3 to 10 years, so it's worth checking the current rules before you apply.
You will usually have to pay back some or all of the discount if you sell within 5 years.
How does it work?
- ApplyFill in the RTB1 form and send it to the council you rent from. The council has 4 weeks to consider it and confirm in writing whether you have the right to buy.
- The council's offerThe council values the property, then works out your discount and the price you can buy it for. This can take up to 8 weeks for a house and up to 12 weeks for a flat.
- Your mortgageOnce you have the offer, you have 12 weeks to get ready to complete. You apply for a mortgage and wait for a decision, which depends on the valuation and on how much you can borrow.
- A solicitorA solicitor checks the property from a legal point of view and prepares the sale contract.
- CompletionOnce the contract is signed and the sale completes, you are the full legal owner of the property.
Is it worth it?
Right to Buy gives people on lower incomes a real chance of owning their own home. Even with modest savings, you can become a homeowner and gain stability and a sense of belonging. Before you decide, it's worth talking to experts so you fully understand the rules of the scheme.
If you'd like to know more about buying your council home and want help with the paperwork, get in touch. We'll help you through the scheme and find a good mortgage to finance the purchase.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.