Who qualifies for Right to Buy?

You must be a secure council tenant in England with at least three years of public-sector tenancy (it does not have to be continuous, and time with other public-sector landlords counts). The property must be your main home. Certain properties are exempt, including sheltered housing and properties due for demolition.

Do I need a deposit for Right to Buy?

Not always. The discount you receive can serve as your deposit, giving you immediate equity in the property. Some lenders offer 100% Right to Buy mortgages where the discount covers the full deposit requirement. However, you will still need to cover legal fees, survey costs and other buying expenses.

What happens if I sell my Right to Buy home?

If you sell within the first five years, you must repay a percentage of the discount. In year one, you repay 100% of the discount; this reduces by 20% each year, so in year five you repay 20%. After five years, the discount is fully retained. You must also offer the property back to your former landlord before selling on the open market.

What is Right to Buy? Meaning Explained

Right to Buy is a long-standing government policy that allows qualifying council tenants in England to purchase the property they rent from their local authority at a discount. The scheme was introduced in 1980 and has enabled millions of tenants to become homeowners.

The discount you receive depends on how long you have been a council tenant, whether the property is a house or a flat, and the property's market value. As of 2025, the maximum discount is £96,000 across England (£127,900 in London boroughs). For houses, you start with a 35% discount after three years as a tenant, rising by 1% for each additional year up to a maximum of 70%. For flats, you start with 50% after three years, rising by 2% per year up to 70%.

Right to Buy mortgages are available from many mainstream lenders. The discount effectively acts as your deposit, which means you may not need any savings at all to purchase. However, lenders still carry out full affordability assessments, and the mortgage must be affordable based on your income.

If you sell the property within five years of purchasing it, you may have to repay some or all of the discount. The local authority also has the right of first refusal — meaning you must offer it back to them before selling on the open market. Right to Buy does not apply in Scotland (which has its own "Right to Buy" that was abolished in 2016) or Wales (abolished in 2019).

Example

Dave has been a council tenant for 12 years, living in a three-bedroom house valued at £220,000. Under Right to Buy, he qualifies for a 44% discount (35% base + 9% for additional years), which gives him £96,800 off the price. He purchases the house for £123,200 with the discount acting as a significant deposit. He takes a mortgage of £123,200, which is easily affordable on his salary.

Key Points

Right to Buy allows qualifying council tenants in England to buy their home at a discount
Discounts depend on tenancy length and property type, with a maximum of £96,000 (£127,900 in London)
The discount can effectively act as your deposit, reducing or eliminating the need for savings
If you sell within five years, you may have to repay some or all of the discount
The scheme does not apply in Scotland (abolished 2016) or Wales (abolished 2019)