Introduction to Right to Buy
The Right to Buy scheme gives eligible council tenants in England the opportunity to purchase their home at a significant discount. Introduced in the early 1980s, its main purpose is to help people move from renting to home ownership, making property ownership more accessible for long-term social housing tenants.
The scheme was established under the Housing Act 1985 – Wikipedia, which sets out the legal framework and eligibility rules. Since its launch, Right to Buy has helped millions of people buy their council homes, offering discounts based on how long they have lived in the property and whether it is a house or a flat.
Right to Buy is mainly aimed at secure tenants of local councils, although some housing association tenants may also qualify in certain circumstances. To benefit, you usually need to have lived in a qualifying council or social housing property for at least three years. The size of the discount depends on your tenancy history and the type of property you live in.
This scheme is part of the wider Council Housing in the UK: How to Apply, Rights, and Key Options system, which provides affordable homes for people who need them. If you are currently renting from a council or social landlord, it’s important to understand your legal rights and responsibilities as a tenant before deciding whether to buy.
For official guidance on how the scheme works, eligibility criteria, and how to apply, visit the Right to Buy: buying your council home: Overview – GOV.UK page. This resource offers practical information and step-by-step advice to help you through the process.
Who is Eligible for Right to Buy?
To qualify for the Right to Buy scheme, you must meet certain eligibility criteria set by the government. The main requirements focus on your tenancy type, how long you’ve lived in your council home, and your current housing status.
Length and Type of Tenancy
You usually need to have been a public sector tenant for at least three years. This means you must have lived in a council house or another qualifying public sector property as your main home. The three years do not have to be continuous, but they must add up over time.
You must also have a secure tenancy. Most council tenants have this type of tenancy, which gives you strong rights to live in your home long-term. If you are not sure about your tenancy type, your local council can confirm this for you.
Who Is Not Eligible?
Not everyone who lives in council housing can use Right to Buy. Some of the main exclusions include:
- Tenants living in sheltered or supported housing, especially if it is for older people or those with special needs.
- People with outstanding possession orders against them, or those facing eviction.
- Individuals declared bankrupt or with unspent bankruptcy proceedings.
- Tenants whose homes are due to be demolished.
Housing association tenants are generally not eligible for the standard Right to Buy scheme. However, some may qualify under a separate scheme called Right to Acquire. If you are unsure about your situation, it is best to check with your landlord.
Special Cases
If you share your tenancy with someone else, like a spouse or civil partner, you may be able to apply together. Family members who have lived with you for at least the past 12 months may also be eligible to join the application, even if they are not named on the tenancy.
How to Check Your Eligibility
Before applying, it’s a good idea to confirm your eligibility. You can speak to your local council or landlord for advice. There are also helpful online guides, such as About the Right to Buy Council House Scheme | Habito, that explain the rules in detail.
For a broader understanding of how council housing is allocated and who can access it, see our page on Council Housing Eligibility and Allocation. If you are interested in finding out more about who can apply for council housing in general, visit Who Can Apply for Council Housing?.
Checking your eligibility early can save you time and help you make informed decisions about your next steps.
How to Apply for Right to Buy
Applying for the Right to Buy scheme involves several clear steps. Here’s a straightforward guide to help you through the process.
Step 1: Check Your Eligibility
Before you start, make sure you meet the eligibility requirements. You usually need to have been a public sector tenant for at least three years. This can include time spent in different council or housing association homes. If you’re not sure about your eligibility, your council’s housing department can advise you.
Step 2: Gather Your Information and Documents
To complete your application, you’ll need to provide:
- Your full name and address
- Details of everyone living in your home
- Proof of tenancy (such as your tenancy agreement)
- Details of joint applicants, if any (for example, someone who shares your tenancy)
- National Insurance numbers for all applicants
Having these documents ready will help speed up the process.
Step 3: Complete the Application Form
The official application form for Right to Buy is called the RTB1. You can download it directly from the government website: Right to Buy: application form (RTB1) – GOV.UK. Fill in the form carefully, making sure all details are accurate.
Once completed, send the form to your landlord – usually your local council or housing association. Keep a copy for your records.
Step 4: Wait for Your Landlord’s Response
After receiving your application, your landlord must reply within four weeks (or eight weeks if they have not been your landlord for the full three years). They’ll either confirm or deny your right to buy. If your application is accepted, you’ll receive a Section 125 notice. This document explains:
- The price you can buy your home for, including your discount
- How the price was calculated
- Any structural problems with the property
- The terms and conditions of the sale
Step 5: Decide Whether to Go Ahead
You have at least 12 weeks to decide if you want to proceed with the purchase. If you have questions or need more time, you can ask your landlord for an extension.
What Happens Next?
If you choose to go ahead, you’ll need to arrange a mortgage (if required) and appoint a solicitor or conveyancer to handle the legal side of the purchase. The process from here is similar to buying any other property.
If you’re interested in learning more about social housing and your options, see our guide on How to Apply for Social Housing for further information.
Applying for Right to Buy is a significant decision. Make sure you understand your rights and responsibilities before moving forward. If you need help, your local council or a housing adviser can provide support.
Understanding the Discount and Price
When you buy your council house under the Right to Buy scheme, you could receive a significant discount on the market value. The exact amount depends on how long you’ve been a public sector tenant and the type of property you’re buying.
How is the discount calculated?
The discount increases with the length of time you’ve spent as a council or public sector tenant. For houses, you usually get a 35% discount after three years of tenancy. This increases by 1% for each extra year, up to a maximum of 70% or a set cash limit (whichever is lower). For flats, the discount starts at 50% after three years, rising by 2% for each extra year, also up to 70% or the cash limit.
Example:
If you’ve lived in your council house for 10 years, and it’s a house (not a flat), you could get a 42% discount (35% plus 7% for the extra years).
Maximum discount limits and regional differences
There is a maximum cash discount you can receive, which is reviewed each year. In England, for example, the maximum discount is over £96,000, but this is higher in London boroughs (over £127,000). These limits may change, so it’s important to check the current figures before applying. The maximum applies even if your calculated percentage discount would be higher.
How is the final price determined?
The council will first get your home valued at its current full market price. Your discount is then subtracted from this valuation. The resulting figure is the price you’ll pay to buy your home. For instance, if your home is valued at £200,000 and you’re entitled to a 40% discount, you would pay £120,000.
Repaying the discount if you sell soon
If you sell your home within five years of buying it through Right to Buy, you’ll have to pay back some or all of the discount. The amount you pay back depends on how soon you sell. If you sell in the first year, you must repay the entire discount. The amount reduces each year, so by the fifth year, you’d only repay 20%. This rule is designed to discourage quick sales for profit.
Other discounts and help
If you’re interested in how discounts work in other areas, such as council tax, you might find it helpful to read about Discounts, Exemptions, and Reductions for council tax.
Understanding how the Right to Buy discount works can help you make an informed decision about purchasing your council home. Always check the latest rules and seek advice if you’re unsure about your eligibility or the process.
The Legal Process of Buying Your Council House
When you decide to buy your council house through the Right to Buy scheme, you’ll go through several important legal steps. Understanding the process can help you feel more confident and prepared.
Step 1: Accepting Your Offer and Instructing a Solicitor
Once your council has confirmed your eligibility and sent you an offer notice (known as a Section 125 notice), you’ll need to decide if you want to go ahead. If you accept, it’s time to instruct a solicitor or licensed conveyancer. They will handle the legal work involved in transferring the property into your name.
Your solicitor will review the council’s offer, check the property’s title, and make sure there are no legal issues, such as boundary disputes or restrictions on the property. They’ll also explain any conditions attached to the sale.
Step 2: Arranging Your Finances
Most buyers use a mortgage to purchase their council home. Before you proceed, it’s wise to get a mortgage offer in principle. Your solicitor can help you understand the terms of your mortgage and make sure you meet the lender’s requirements. Remember to factor in extra costs, such as legal fees, surveys, and stamp duty (if applicable).
If you’re unsure about your mortgage options, it may help to speak with a mortgage adviser. They can explain the different types of mortgages available and help you choose the one that’s right for you.
Step 3: The Conveyancing Process
Conveyancing is the legal process of transferring ownership from the council to you. Your solicitor will:
- Carry out searches (such as local authority and environmental searches)
- Check for any planning or building regulation issues
- Review the lease (if you’re buying a flat or maisonette)
- Liaise with the council to resolve any questions
They will keep you updated throughout and let you know if any issues arise that could delay the process.
Step 4: Exchanging Contracts and Completion
Once all checks are complete and your mortgage is in place, you’ll exchange contracts with the council. This is the point at which the sale becomes legally binding. A completion date is then set – usually a few days to a few weeks later.
On completion day, your solicitor will transfer the funds to the council. The property will then officially belong to you, and you’ll receive the keys. Your solicitor will also register you as the new owner with HM Land Registry.
Final Steps and Further Advice
After completion, you’re responsible for the property, including any repairs and maintenance. It’s a good idea to arrange buildings insurance from the day you become the owner.
If you’d like to learn more about the wider legal aspects of buying a home, you can read our guide on Buying a Home for a broader overview of the process and your rights as a homeowner.
Important Considerations Before Buying
Before deciding to buy your council house under the Right to Buy scheme, it’s important to weigh up both the benefits and the drawbacks. Owning your home can be a big step, so take time to think through the following points.
Pros and Cons of Buying Your Council Home
One of the main advantages of buying is security. As a homeowner, you won’t have to worry about your tenancy ending unexpectedly. You can also make changes to your property without needing permission from the council.
However, there are downsides to consider. You will lose some of the protections and support you had as a council tenant. If you later struggle to pay your mortgage or bills, you could risk losing your home. You’ll also become responsible for all repairs and maintenance, which can be costly.
Maintenance Responsibilities
Once you own your home, you are responsible for all upkeep. This includes fixing the roof, maintaining the boiler, and dealing with any structural issues. Unlike as a tenant, you cannot call the council to arrange repairs. Make sure you understand the likely costs of maintaining your property and budget for unexpected expenses.
Impact on Future Housing Options and Tenancy Rights
Buying your council house will affect your future housing choices. If circumstances change and you need to move, you will need to sell your home on the open market. You may not be able to return to council housing easily if you sell or lose your home.
You will also lose your council tenancy management rights and protections. This means you won’t have access to the same support services or the ability to transfer to another council property in future.
If you’re interested in exploring other options, you might want to look at how to swap council or housing association homes instead of buying. This could allow you to move to a different property without taking on the responsibilities of ownership.
Alternatively, some people consider renting from a housing association. These organisations offer different tenancy types and support. Find out more about understanding housing associations and your rights before making a decision.
Seeking Independent Advice
Before making any commitment, it’s wise to get independent financial and legal advice. A mortgage advisor can help you understand the costs and risks of home ownership. A solicitor can explain the legal process and check that you fully understand your new responsibilities.
If you want to know more about your rights and responsibilities as a tenant before you decide, you can read about your legal rights and responsibilities when renting a house in the UK.
Taking the time to weigh up your options and seek advice will help you make the best decision for your circumstances.
What Happens if You Can’t Buy or Change Homes
Not everyone will be able, or want, to buy their council house through the Right to Buy scheme. If you are not eligible, or you decide that buying is not right for you, you still have important rights and options as a council tenant.
If You Are Not Eligible or Decide Not to Buy
If you remain in your council home, your tenancy continues as normal. You still have the legal protections and responsibilities that come with being a council tenant. These include the right to live in your home without disturbance, as long as you follow your tenancy agreement. If you want more detail on your rights and obligations, see our section on Council Housing.
If the Council Needs to Rehouse You
There are situations where the council may need to move you – such as if your home is due for redevelopment, or if there are serious problems with the property. In these cases, the council has a legal duty to help you find alternative accommodation. The exact support you receive will depend on your circumstances, including your family situation and any medical needs.
To understand when the council must step in and rehouse you, and what their responsibilities are, you can read more about the Main Housing Duty.
Support for Tenants Facing Housing Difficulties
If you are at risk of losing your home or are facing homelessness, it’s important to act quickly. The council must offer advice and, in many cases, practical help to prevent you from becoming homeless. This might include finding you another council property, offering temporary accommodation, or helping you apply for other types of housing.
You can find official guidance on how to apply for council housing, and what to expect from the process, on the GOV.UK Council Housing page.
How Contend Can Help
If you are unsure about your rights, worried about losing your home, or need help understanding your options, Contend’s AI Legal Assistant can provide clear, personalised answers. Get step-by-step guidance on what to do if you’re not eligible for Right to Buy, or if you need to move. Contend can also help you prepare letters or documents to support your application for rehousing, or to communicate with your local council. Whatever your situation, Contend is here to make your next steps clearer and easier.
