About the Right to Buy Discount

The government passed new legislation in 1980 that enabled many local authority tenants to purchase their homes for a discounted price. In October 1980 the right to buy scheme was born as part of the Act of Parliament 1980.

The scheme has been amended over the years. It can be used by council tenants and housing association tenants. Certain criteria will apply depending on the tenant’s circumstances.

The government’s Right to Buy scheme gives people the opportunity to buy their council home or housing association property at a price discounted below its market value.
The maximum discount available to public sector tenants in England is currently £96,010, rising to £127,940 for those living in London. The scheme works slightly differently in Northern Ireland, where the maximum discount is £24,000.

For example:

a) Purchasing a property of £130,000 with the maximum percentage discount of 70%
130,000 x 70% = £87,500 discount and therefore a purchase price of £39,000

b) Purchasing a property outside London of £200,000 with the maximum 70% discount
£200,000 x 70% = £140,000 – discount capped at £96,010 so maximum discount is £96,010 and therefore a purchase price of £103,990

c) Purchasing a property inside London of £350,000 with the maximum 70% discount
£350,000 x 70% = £245000 – discount capped at £127940 so maximum discount is £127,940 and therefore a purchase price of £222,060.

Using our Right to Buy Discount Calculator, you can calculate what discount you could be entitled to when purchasing your public sector property through the Right to Buy scheme.