Right to Buy discount calculator

  • Right to Buy Specialists
  • No Deposit Required
  • Free, no obligation initial consultation
  • Exclusive Rates

Right to Buy discount calculator

  • Right to Buy Specialists
  • No Deposit Required
  • Free, no obligation initial consultation
  • Exclusive Rates
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Author: Carl Shave - CEO and co-founder
Last updated: 15 Apr 2024

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.

How does the Right to Buy calculator work?

Our calculation is based on the current value of your home, the property type, and the number of years you have been a tenant. Your discount will vary depending on whether your property is a house or flat;

  • Houses – You could qualify for a 35% discount off the market value of your council house if you have been a public sector tenant for between three and five years. After five years, the discount goes up by 1% for every extra year you have been a tenant, up to a maximum discount of 70%.
  • Flats – You could qualify for a 50% discount off the market value of your council flat if you have been a public sector tenant for between three and five years. After five years, the discount goes up by 2% for every extra year you have been a tenant, up to a maximum discount of 70%.

For both houses and flats, the maximum discount is capped at £96,010 across England and £127,940 in London boroughs.