Right to Buy in England 2026: Eligibility, Discounts, and the New Rules

Right to Buy is one of the most straightforward paths to homeownership available in England — if you happen to be a long-term council tenant. The scheme allows you to purchase the home you already live in at a discount below market value. But the rules changed significantly in recent years, and the generous discounts that made the scheme famous have been substantially reduced.

Here is what Right to Buy looks like in 2026: who qualifies, what discount you can actually expect, and what the restrictions mean for your plans.

What Is Right to Buy?

Right to Buy gives secure council (local authority) tenants the legal right to purchase their home from the council at a discount. The scheme has existed in various forms since 1980 and has resulted in millions of council homes transferring to private ownership.

The discount is calculated based on how long you have been a public sector tenant. The longer you have rented, the larger the discount — up to a statutory cap.

Who Is Eligible?

To qualify for Right to Buy in England in 2026, you must:

• Be a secure council tenant (Right to Buy does not apply to housing association tenants — they have a separate, more limited scheme called "Preserved Right to Buy" or, in some cases, "Right to Acquire")
• Have been a public sector tenant for at least 10 years (this was increased from 3 years in recent government reforms designed to limit the depletion of social housing stock)
• Have the property as your main or only home
• Not be subject to a court order relating to anti-social behaviour

The 10-year requirement can be accumulated across different public sector tenancies — you do not need to have been in the same property for 10 years, but the total period of qualifying public sector tenancy (which includes tenancies with housing associations, the NHS, and the Armed Forces) must reach 10 years.

The Right to Buy Discount: How Much Is It Now?

The discount structure was significantly revised alongside the eligibility changes. Previously, the maximum discount in London was £136,400 and £102,400 elsewhere — substantial sums that gave many long-term tenants access to genuine equity.

Under the current rules, maximum discounts are set at much lower flat regional caps:

• The discount ranges from £16,000 to £38,000 depending on your local authority area

The percentage discount structure is unified for both houses and flats:

• 5% discount at 10 years of qualifying tenancy
• Rising by 1% per additional year of tenancy
• Maximum cap of 15% of the property's value (subject to the cash cap above)

So a tenant who has held a public sector tenancy for 20 years would receive a 15% discount (10 years at 5%, plus 10 additional years at 1% each = 15%) — but this is capped at the regional cash maximum.

On a house valued at £300,000 with 20 years' tenancy, a 15% discount would be £45,000. But if your local authority's cap is £38,000, the actual discount is limited to £38,000.

These represent a dramatic reduction from the pre-reform caps. The practical effect is that in higher-value areas (particularly London and the South East), the discount as a percentage of the property value has become quite small.

Properties Exempt from Right to Buy

Several categories of property are exempt from Right to Buy:

New social housing built after 2025: Any social homes constructed after 2025 are entirely exempt from the scheme for 35 years. This is designed to protect newly built affordable housing stock from immediately transferring into private ownership.

Properties unsuitable for sale: Some council properties, particularly very small flats or properties with significant structural issues, may be excluded at the council's discretion.

Properties subject to demolition notices: If the council has plans to demolish or redevelop the area, Right to Buy applications may be suspended.

Some sheltered housing: Accommodation designed specifically for elderly or disabled residents may be exempt.

The Right to Buy Repayment Clause

If you buy under Right to Buy and then sell the property within 10 years (changed from 5 years under the recent reforms), you must repay a proportion of the discount:

• Sell within 1 year: repay 100% of the discount
• Sell in year 2: repay 80%
• Sell in year 3: repay 60%
• Sell in year 4: repay 40%
• Sell in year 5: repay 20%
• Sell in years 6 to 10: repay 0%

Wait, that last row requires clarification. Under the extended scheme, the repayment period is now 10 years, not 5. The sliding scale reduces the repayment obligation each year — but you need to have owned the property for 10 years before the repayment obligation completely disappears. Check current government guidance for the exact sliding scale for years 6 to 10.

The repayment is calculated on the original discount amount — not on any increase in value between purchase and sale. So if your home rises significantly in value, you still only repay a portion of the original discount.

Right to Buy for Housing Association Tenants

If you are a housing association tenant rather than a council tenant, the standard Right to Buy does not apply to you. However, you may have rights under related schemes:

Right to Acquire: Housing association tenants in England who have been tenants for at least three years may be eligible for the Right to Acquire, which offers a smaller discount (£9,000 to £16,000 depending on location). The property must have been built or acquired by the housing association with public funds since 1 April 1997.

Preserved Right to Buy: Tenants whose homes were originally council-owned and transferred to a housing association may have Preserved Right to Buy — the same rights they would have had as council tenants, preserved after the stock transfer.

Your housing association should be able to tell you which scheme, if any, applies to your tenancy.

How to Apply for Right to Buy

1. Request a Right to Buy claim form (RTB1 form) from your local council's housing department. This can usually be done online or by post.

2. Submit the completed RTB1 form to the council. The council must respond within 4 weeks (or 8 weeks for certain properties) confirming whether they accept or deny your right.

3. Receive a Section 125 Notice: If your right is confirmed, the council issues a formal offer notice (Section 125 Notice) detailing the purchase price, the discount offered, and a valuation of the property. This must arrive within 8 weeks of your RTB1 for a freehold property, or 12 weeks for a leasehold.

4. Review and decide: You have 12 weeks to accept, reject, or request an independent valuation if you believe the council's valuation is too high. If you request an independent valuation, a district valuer assesses the property and their valuation is binding.

5. Arrange a mortgage: Contact a mortgage broker or lender. Right to Buy purchases require a standard mortgage — the discount cannot be funded by the mortgage (you are borrowing against the discounted price, not the full market value).

6. Complete the purchase: The conveyancing process follows standard lines. You will need a solicitor, and the council must complete the sale within a statutory timeframe once you have accepted the offer.

Is Right to Buy Worth It in 2026?

For long-term council tenants in areas with moderate property values, Right to Buy still represents a meaningful route to ownership — even with the reduced discounts. Buying a home you already know and live in, at a discount to market value, avoids estate agent fees, survey costs on an unknown property, and the risk of buying something with hidden problems.

In higher-value areas, the reduced discount caps mean the financial advantage has narrowed significantly. A 15% discount capped at £38,000 on a £400,000 property is less transformative than the pre-reform discounts were.

The 10-year tenancy requirement is the most significant practical barrier. If you have been in the public sector for less than 10 years, Right to Buy is not yet available to you — but it may be in the future, and it is worth tracking your tenancy length against the eligibility threshold.

If you are a council tenant approaching the 10-year mark, begin researching the process early. Understanding the discount you will be entitled to and whether your council has any exemptions or complications gives you time to plan your finances accordingly.

The England First-Time Buyer Guide covers all the routes into homeownership available in England in 2026 — including Right to Buy, First Homes, Shared Ownership, and the Lifetime ISA — so you can identify which path suits your circumstances.

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