Understanding the Right to Buy scheme

The Right to Buy scheme has helped millions of council tenants in the UK take their first step onto the property ladder. But with housing policy constantly evolving, many people still have questions about how the scheme works, who qualifies and whether it’s the right move for them.

In this blog post, we’ll break down everything you need to know about the Right to Buy scheme, including its benefits and drawbacks.

What is the Right to Buy scheme?

The Right to Buy is a UK government scheme that allows most council tenants (and some housing association tenants) to purchase their home at a significant discount. Introduced in the 1980s under Margaret Thatcher’s government, the initiative was designed to promote home ownership and reduce the size of the public housing stock.

As of 2025, the scheme is still active in England (with variations in Wales and Northern Ireland), although it has been abolished in Scotland.

How does it work?

Here’s a quick overview of the process:

1. Check eligibility: tenants must have lived in a council or housing association property for at least 3 years (not necessarily continuously or in the same property).
2. Submit application: complete and submit the RTB1 application form to your local authority .
3.  Local authority response: the local authority  has up to 4 weeks (or 8 weeks if you've been a tenant for less than 3 years) to respond with a decision.
4. Offer notice: if approved, the local authority  will send a Section 125 notice detailing the price, discount, and property description.
5. Decision time: you have 12 weeks to accept or decline the offer.
6. Completion: if you proceed, you’ll go through the usual home-buying steps like arranging a mortgage, survey, and conveyancing.

Who qualifies?

To be eligible for Right to Buy in England, you must:

• Be a secure tenant of a local authority or housing association (in some cases)
• Have had a public sector landlord for at least 3 years (they don’t need to be consecutive)
• Use the property as your only or main home
• Not be subject to legal proceedings for rent arrears or eviction
• Not to have any legal problems with debt, i.e. be subject to a bankruptcy petition or debt relief order
• Not live in a property that is exempt (e.g., housing for the elderly or disabled in some cases)
• Not live in a property that is due to be demolished

What’s the discount?

The discounts available range between £16000 - £38000.  The available discount depends on the following factors:

• How long you have owned the property.
• Where the property is.
• The value of the property.
• Whether it is a flat or house. 

The maximum discount you can get is the lower of the following;

• 70% of the value of your property
• The maximum discount for your region

The discounts available for each region are set out below:

Pros of the Right to Buy scheme

Affordable homeownership: the discount makes homeownership more accessible for low and middle-income households.

Asset building: you build equity and could benefit from future property value increases.

Freedom to renovate: owners have more control over changes to their home than tenants.

Security: owning your home can provide long-term housing stability.

Cons of the Right to Buy scheme

Loss of social housing: each sale reduces the availability of affordable rental housing for others.

Maintenance costs: owners are responsible for repairs and maintenance, which can be costly—especially for flats with service charges.

Resale restrictions:if you sell within 5 years, you may have to repay some or all of the discount.  If you sell within 10 years, you first of all have to offer the property back to the local authority who have the right of first refusal.

Mortgage responsibility: taking on a mortgage is a long-term financial commitment and comes with risks if circumstances change.