Right to Buy Definition
Right to Buy is a government scheme that gives eligible council and housing association tenants in England the legal right to purchase their home at a substantial discount. Introduced by the Housing Act 1980, the scheme has enabled over 2 million council tenants to become homeowners.
The discount you receive depends on how long you have been a public sector tenant, whether the property is a house or a flat, and the property's market value.
Eligibility Criteria
- You must be a secure tenant of a council home in England
- You must have been a public sector tenant for at least 3 years (this includes time with different landlords)
- The property must be your only or main home
- Your home must be self-contained
- You must not be subject to a court order for possession or bankruptcy
Some properties are excluded, including most sheltered housing designed for elderly or disabled people, and properties scheduled for demolition.
Discount Amounts
The discount depends on the property type and your years as a public sector tenant:
| Factor | Houses | Flats |
|---|---|---|
| Starting discount (3 years) | 35% | 50% |
| Additional per year | +1% | +2% |
| Maximum percentage | 70% | 70% |
| Maximum discount | £96,000 (£127,900 London) | £96,000 (£127,900 London) |
The maximum discount amounts are updated annually in line with the Consumer Price Index (CPI).
The Application Process
- Complete the Right to Buy application form (RTB1) and send it to your landlord
- Your landlord has 4 weeks to confirm you have the right to buy (8 weeks for housing association tenants)
- Your landlord then has 8 weeks (houses) or 12 weeks (flats) to send you an offer notice with the price and terms
- You have 12 weeks to accept or reject the offer
- If you accept, you proceed with the purchase through a solicitor, much like any other property transaction
- You can apply for a mortgage to fund the purchase - the discount effectively acts as a deposit
Restrictions After Purchase
- Repayment of discount: If you sell within 5 years, you must repay some or all of the discount - 100% in year one, reducing by 20% each subsequent year
- Right of first refusal: You must offer the property back to the council or housing association first before selling on the open market (within the first 10 years)
- Leasehold obligations: If you buy a flat, you will be a leaseholder with service charges and potentially ground rent