What is the Right to Buy scheme?

The Right to Buy scheme allows existing tenants of public-sector homes in England to buy the property they currently rent at a discounted price below the market value. Similar schemes are available in Northern Ireland, though the rules differ slightly.

The flagship policy has been around since 1980. However, following a major government overhaul to protect the dwindling supply of social housing, the scheme underwent its most restrictive reforms in history.

Key Legislative Shifts: 2024 to 2026

• November 2024: Regional cash discount caps were sharply slashed down to pre-2012 levels, reducing the maximum potential discount to between £16,000 and £38,000 depending on the region (replacing the previous caps of up to £136,400).
  

• The 2026 Overhaul: The government introduced an even stricter framework to safeguard social housing stock. These sweeping new rules dramatically changed baseline eligibility, maximum percentage discounts, and exemptions for newer properties

Eligibility Criteria & Discount Changes

Under the current 2026 rules, the Right to Buy framework is heavily structured around long-standing tenancies.

To be eligible for the Right to Buy scheme today, you must meet the following criteria:

• 10-Year Minimum Tenancy: The minimum time a tenant must live in public sector housing before becoming eligible to apply to buy their home has been increased from 3 years to 10 years.

• Revised Discount Cap: The maximum percentage discount has been capped at just 15% of the property value (or the regional cash cap, whichever is lower). Houses and flats are now treated under the same discount structure, which starts at 5% after 10 years of tenancy and increases by 1% for each additional year.

• 35-Year New-Build Exemption: To encourage council housebuilding, any social or affordable home constructed after 2025 is legally exempt from the Right to Buy for a period of 35 years post-construction.

• Tighter Resale Restrictions: If you sell your home soon after purchasing, the “repayment window” (the period in which you must pay back all or part of your discount) has been doubled from 5 years to 10 years. Furthermore, local authorities hold a right of first refusal indefinitely.

Applying for a Right to Buy mortgage

You can apply for a Right to Buy mortgage by sending a completed application form to your landlord. If you meet the 10-year secure tenancy baseline, your landlord will respond with a formal offer (known as a Section 125 Notice).

This offer will explicitly outline:

• The price they believe you should pay for the property.

• Who worked out the valuation.

• How your Right to Buy discount was calculated under the current 15% / regional cash caps.

• A description of the property and any land included in the price.

• Estimates of service charges (for a flat or maisonette) for the first 5 years.

• Any known structural issues with the property.

Once you receive this official offer, you have 12 weeks to confirm your intention to proceed. If you believe the landlord has overvalued your home, you have the right to request an independent valuation from a District Valuer within 3 months of the offer.

Which lenders offer Right to Buy mortgages?

Some lenders advertise ‘Right to Buy’ mortgages tailored specifically to this type of purchase; others will consider each mortgage application, including Right to Buy, on a case-by-case basis. In either event, if the lender’s criteria is met, they will look to agree the mortgage.

Some Right to Buy mortgage lenders will consider lending more than the discounted purchase price, in order to allow for home improvements to be made – so if your kitchen or bathroom need updating, you could look at borrowing additional funds towards this.

One thing to bear in mind, however, is that if you approach a lender directly, they can only discuss their own mortgage products with you; you will not get an idea of the market as a whole. While you might by chance approach the lender offering the best deal for you, it is possible there may be better offers elsewhere.

Right to Buy mortgage brokers

At Just Mortgage Brokers, we work with many lenders offering Right to Buy mortgages. If you’re looking to buy your council property, we can help you find a mortgage deal that suits you. Even if you have a poor credit history, that doesn’t mean you won’t be eligible for a Right to Buy mortgage.

As with any financial product, it’s always worth seeking expert advice first. At Just Mortgage Brokers, we advise on the Right to Buy options that are available to you. Our team will happily guide you through the whole application process. We work closely with leading brands and smaller specialist lenders, meaning we have access to exclusive mortgage deals to suit all requirements.

We work with over 90 lenders to find you the best deals. Book your free consultation now!