Who Is Eligible for Right to Buy
To qualify for Right to Buy in England, you must be a secure tenant of a local authority (council) and have been a public sector tenant for at least 3 years in total. These 3 years don't have to be continuous or with the same landlord — time spent as a tenant of any council, housing association, or other public body counts towards your qualifying period.
You must be the named tenant on the tenancy agreement, and the property must be your only or principal home. Joint tenants can apply together, and up to 3 family members who have lived with you for at least 12 months can be added to the application.
You cannot apply if you have an undischarged bankruptcy, an active possession order against you, or if the property falls within certain exemptions (sheltered housing for the elderly, properties adapted for disabled persons, or properties scheduled for demolition). Your landlord will confirm eligibility after you submit your application.
Discount Calculations
The discount is based on two factors: how long you've been a public sector tenant and whether the property is a house or a flat. For houses, you get a 35% discount after 3 years of qualifying tenancy, plus 1% for each additional year up to a maximum of 70%. For flats, you start at 50% after 3 years, plus 2% for each additional year up to a maximum of 70%.
However, the cash discount is capped at £96,000 across most of England and £127,900 in London boroughs. These caps are updated annually in line with CPI inflation. There's also a 'cost floor' rule: if your landlord has spent money on repairs or improvements in the 15 years before your application (or 10 years for applications before certain dates), your discount cannot reduce the price below what the landlord has spent.
| Property type | Starting discount (3 years) | Annual increase | Maximum discount |
|---|---|---|---|
| House | 35% | +1% per year | 70% or cash cap |
| Flat | 50% | +2% per year | 70% or cash cap |
The Application Process
The process begins with a completed RTB1 form (Right to Buy application notice), which you send to your landlord. They have 4 weeks to respond with an RTB2 notice confirming or denying your right. If they confirm, they then have 8 weeks (for a house) or 12 weeks (for a flat, because a valuation is needed) to send you an offer notice (Section 125 notice) detailing the price, discount, and terms.
If you disagree with the valuation, you can request a determination by the district valuer within 3 months. This is an independent valuation that both sides must accept. You then have 12 weeks from the offer (or determination) to complete the purchase. If you don't respond, your landlord can serve a notice requiring a decision within 28 days.
You can fund the purchase with a mortgage, savings, or a combination. Most mainstream lenders offer Right to Buy mortgages, and some will lend up to 100% of the discounted purchase price (effectively using the discount as your deposit). However, lending criteria still apply — you'll need to pass affordability checks.
- ▸Step 1: Submit RTB1 form to your landlord
- ▸Step 2: Landlord responds within 4 weeks with RTB2 (admit or deny)
- ▸Step 3: Section 125 offer notice within 8 weeks (house) or 12 weeks (flat)
- ▸Step 4: Accept the offer, challenge the valuation, or withdraw
- ▸Step 5: Arrange mortgage and solicitor, exchange and complete
Restrictions on Resale
If you sell your Right to Buy property within 5 years of purchase, you must repay some or all of the discount. In the first year, you repay 100% of the discount. This reduces by 20% each year: 80% in year 2, 60% in year 3, 40% in year 4, and 20% in year 5. After 5 years, no repayment is required.
The repayment is based on a percentage of the current market value, not the original discount amount. So if your home has increased in value, the amount you repay will be higher than the original discount figure. For example, if you received a 40% discount and sell in year 1, you repay 40% of the sale price, not 40% of the original price.
Additionally, for the first 10 years, you must offer the property back to your former landlord (or another social landlord) before selling on the open market. This 'right of first refusal' gives the council 8 weeks to decide whether to buy the property at full market value. In practice, most councils decline, but the obligation must be fulfilled.
Preserved Right to Buy and Right to Acquire
If your council transferred its housing stock to a housing association, you may have the 'preserved Right to Buy' with the same discounts and rules. This only applies if you were a secure council tenant at the time of the transfer and have remained a tenant continuously since.
Housing association tenants who don't qualify for preserved Right to Buy may instead be eligible for the Right to Acquire. This offers smaller discounts of £9,000 to £16,000 depending on your region, and the property must have been built or acquired with public funding after 1 April 1997. The qualifying tenancy period is also 3 years.
It's worth noting that Right to Buy does not apply in Wales (it was abolished in January 2019) or Scotland (abolished in August 2016). In these nations, alternative schemes may be available through devolved housing programmes.
Key Takeaways
- ✓You need 3 years as a public sector tenant to qualify — they don't have to be continuous
- ✓Discounts start at 35% (houses) or 50% (flats) and increase with length of tenancy up to 70%
- ✓Cash discount is capped at £96,000 (£127,900 in London) for 2024/25
- ✓Selling within 5 years means repaying some or all of the discount as a percentage of current value
- ✓You must offer the property back to a social landlord before selling on the open market for the first 10 years
- ✓Right to Buy has been abolished in Scotland and Wales