Right to Buy: Buying your council house

Quick answer: If you have rented social housing for three years or more, the Right to Buy scheme can help you buy your council home. You can use Right to Buy with a mortgage, and some lenders may let you cover the deposit with your discount.

If you’re a council tenant, the Right to Buy scheme can be a more affordable way to buy your home. This scheme runs in England, although there’s a similar one for Housing Executive tenants in Northern Ireland.

Learn how Right to Buy could save you money and help you buy property sooner. This guide explains how it works and who can apply, as well as other options, like the Right to Acquire scheme for housing association tenants.

What is the Right to Buy scheme?

Right to Buy is a scheme run by the UK government that may give you a discount if you buy your council house or flat. It has helped millions of people swap renting for owning since it started in 1980. With a Right to Buy discount, you may be able to get a mortgage with a smaller deposit and lower monthly payments.

If you’re a tenant of the Housing Executive in Northern Ireland, you can apply to a similar scheme called the House Sales Scheme.

Who can use Right to Buy?

You can apply to buy your council home if all of these are true for you:

• You have had a public sector landlord for three years. This includes housing associations, councils, the armed services and NHS trusts. It does not need to be three years in a row or always with the same landlord.
• It’s your only or main home. This means you live there most of the time.
• It’s self-contained. This means you don’t share living areas, like a bathroom or kitchen, with other households.

You can also apply if you’re a secure tenant. This means you’re allowed to live there for the rest of your life.

You usually can’t use the Right to Buy scheme if:

• You live in housing needed for disabled or elderly people. But sometimes you can make an appeal.
• Your home is going to be demolished. This means it’s going to be torn down, possibly because it’s unsafe or needs rebuilding.
• You have legal problems with debt. For example, if you have a bankruptcy or debt relief order.
• You have an outstanding possession order. This says you must leave your home, usually because you have not paid rent.
• You have a record of anti-social behaviour issues. This means your landlord can ask to pause your Right to Buy for a while.

Can I use Right to Buy with someone else?

Yes, it’s possible to make a joint application using Right to Buy. You may be able to buy your council home with:

• Someone who shares your tenancy.
• Your spouse or civil partner.
• Up to three family members aged 18+ who have lived with you for the past 12 months. They don’t have to be tenants, but it must be their main home.

It may be easier to buy a home with someone who can help out with the deposit or mortgage payments. But make sure you understand your rights and responsibilities when you own a home with someone else. Getting a joint mortgage means your credit reports will be linked. This is called a financial association and can affect your credit score.

What if the council sold my home?

You may have a ‘Preserved Right to Buy’ if you were living in your home when the council sold it to another landlord, like a housing association. This means you can still buy your home through the Right to Buy scheme.

If you don’t have Preserved Right to Buy, you may be able to get a discount through the Right to Acquire scheme instead.

Do I have a right to buy my privately rented property?

No, but you can ask your landlord if they’re interested in selling to you. They don’t have to say yes or explain their decision. If they’re interested, you may want to use an estate agent who can help you negotiate while staying on good terms with your landlord.

What is Right to Acquire?

The Right to Acquire scheme could help you buy your housing association home at a discount of between £9,000 and £16,000, depending on where you live. It might be right for you if you don’t qualify for the Right to Buy scheme.

Your home must:

• Have been built or bought by a housing association or transferred from a local council to a housing association, after 31 March 1997.
• Be rented to you by a landlord who’s registered with the Regulator of Social Housing.

Who can use Right to Acquire?

Right to Acquire has a lot of the same criteria as Right to Buy, like:

• You must have rented from a public sector landlord for three years or more.
• You must be buying property that’s self-contained and your main home.

You can’t use Right to Acquire if you’re a council tenant or you have Preserved Right to Buy. Look into using Right to Buy instead, which may give you a bigger discount.

You can learn more about Right to Acquire with MoneyHelper.

How much is the Right to Buy discount?

Depending on which is lower, your Right to Buy discount is either:

• The maximum cash discount — an amount between £16,000 and £38,000 depending on where you live.
• Your discount rate — a percentage of the property price, between 35% and 70% depending on your circumstances.

Your discount is always the lowest of the two. This is more likely to be the maximum amount allowed in your area.

Maximum cash discounts

Here are the maximum cash discounts for each region in England under the Right to Buy scheme.

Right to Buy discount rates

Your Right to Buy discount rate is calculated as a percentage of the property price. It depends on things like:

• Whether you’re buying a house or flat.
• How long you have been a social housing tenant for.
• If your landlord has done work on your home.
• If you have used the Right to Buy scheme before.

Your discount can’t be more than the maximum cash amount in your area, even if your rate works out as more.

Right to Buy discount rates start at:

• 35% of the property price if you’re buying a council house.
• 50% of the property price if you’re buying a council flat.

If you have rented social housing for more than five years, your discount goes up for each extra year by:

• 1% if you’re buying a council house.
• 2% if you’re buying a council flat.

If your spouse or civil partner has lived in social housing, you may be able to count that time towards your discount as well.

If you’re buying with someone else, you should each work out your discount rate and use the one that’s higher.

Can I sell my Right to Buy home? Ten-year and five-year rules

You can sell your home whenever you like, but there are some rules if you’ve owned the home for less than five or ten years.

If you sell your home within five years of buying it, you have to pay back a percentage of your Right to Buy discount:

• 100% if you sell in the first year
• 80% in the second year
• 60% in the third year
• 40% in the fourth year
• 20% in the fifth year

If you sell your Right to Buy home within 10 years of buying it, you must offer it to your past landlord, or another social housing landlord, first. This is called the ‘Right of First Refusal’. They have eight weeks to decide. If they say no, you can sell your home using the normal sale process.

What is a Right to Buy mortgage?

A Right to Buy mortgage lets you borrow money to buy your council home through the Right to Buy scheme. It may be easier than buying with a standard mortgage, especially if you want to use your Right to Buy discount as the deposit.

Right to Buy: do I need a deposit?

You may be able to use your Right to Buy discount for the deposit. Find out how much deposit you need and see if your discount is enough to cover it. Lenders may allow a smaller deposit if you have a good credit score.

Even if your discount covers your deposit, some lenders may ask for a small deposit anyway, especially for more complicated applications.

How do I get approved for a Right to Buy mortgage?

If you’re applying for a mortgage, some steps that may boost your chances of acceptance are:

• Work out how much you can borrow. This can help you apply for mortgages you’re more likely to get. Mortgage amounts are often up to 4.5 times your annual income, but can be more or less than this.
• Make sure you can afford the mortgage payments. Lenders run checks to see whether you can afford to borrow. They may look at your recent bank statements, so it’s worth sticking to a budget before your application.
• Check your free credit score and report. Lenders run credit checks to understand how you have handled credit in the past. Improving your score could help you get approved for a better offer.

How do I compare Right to Buy mortgages?

Finding the right mortgage can make a big difference, like helping you borrow more or save money with a lower interest rate. You can compare Right to Buy mortgages with our trusted lending partner, Picnic. Just tell us a few details, it takes less than two minutes, and we’ll put you in touch. It’s free and never affects your credit score.

We’re a credit broker, not a lender.

What are the alternatives to Right to Buy?

If you rent from a housing association and you’re not eligible for Right to Buy, the Right to Acquire scheme could be an option. If you can’t use either of these, you can still get help with the cost of buying a home:

• The Shared Ownership scheme lets you buy part of a home and pay rent on the rest. This can make it easier to get a mortgage as you’ll need to borrow less and pay a smaller deposit.
• A Lifetime ISA is an account which tops up your savings for a home if you’re a first-time buyer, or for retirement. Each year you can pay in up to £4,000 and get up to £1,000 added by the government. There are rules about how you can use the money and you may lose some of your savings if you break them.
• The Rent to Buy scheme offers discounted rent to help you save for a house deposit. You’ll need to check with local councils and housing associations to find homes, and there aren’t many available. If you live in London, you can use the London Living Rent scheme instead, and search for homes on london.gov.