Right to Buy has been one of the most significant housing policies in British history. Since its introduction under the Housing Act 1980, over two million council properties have been sold through the scheme, transferring a substantial portion of the UK’s social housing stock into private ownership. For eligible council tenants, it remains one of the most accessible routes to homeownership — offering a discount that effectively provides some of the deposit that would otherwise take years to save.
But the scheme that exists in 2026 is materially different from the one that existed even two years ago. The government has introduced the most significant reforms to Right to Buy in the scheme’s 45-year history, driven by concern about the depletion of social housing stock. If you are a council tenant considering whether Right to Buy applies to you, understanding the current rules — not outdated guidance — is essential.
This guide covers how Right to Buy works now, including all the reforms confirmed as of April 2026.
What Right to Buy Is
Right to Buy is a government scheme that allows eligible secure tenants in England to purchase the council home they live in at a discount below its market value. The discount reflects the length of time the tenant has been a public sector tenant and the type of property. The home is valued at its current market price, and the discount is applied to that valuation to produce the purchase price.
The scheme applies to England only. Scotland abolished Right to Buy in 2016. Wales abolished it in 2019. Northern Ireland has its own equivalent scheme. Any guidance specific to England does not apply in the devolved nations.
Eligibility: Who Qualifies
To be eligible for Right to Buy, you must:
Be a secure tenant of a council. The tenancy must be a secure tenancy — not an introductory tenancy, an assured shorthold tenancy, or a licence. You must be the tenant, not a sub-tenant.
Have lived in public sector housing for the required minimum period. The most significant reform of recent years is the increase in the minimum qualifying period. Previously set at three years, the government has confirmed this will increase to ten years. This means a tenant who has not yet accumulated ten years of qualifying public sector tenancy — whether in a single property or across multiple council or housing association tenancies — will not be eligible under the new rules.
Not already own a property, or have previously used Right to Buy. People who currently own a home or who have previously purchased under the scheme will generally not be eligible under the reformed rules. Limited exceptions may apply in specific circumstances such as survivors of domestic abuse.
Not be subject to bankruptcy proceedings or court possession orders. A tenant subject to a suspended possession order or bankruptcy proceedings is typically ineligible.
For housing association tenants, the position is more complex. The government formally axed an extension of Right to Buy to all housing association tenants in 2024. Some housing association tenants retain Preserved Right to Buy — rights preserved when their original council home was transferred to a housing association. If you believe this applies to you, check your tenancy documentation carefully and seek specific advice.
Read also- What Are Your Rights as a Tenant in the UK?
The Discount: How Much and How It Is Calculated
The discount is the central financial benefit of Right to Buy. How it is calculated has also changed significantly.
Under the reformed rules confirmed in April 2026, the discount structure changes to: a starting discount of 5% of the property’s market value after ten years of qualifying tenancy, increasing by 1% per year of additional tenancy, up to a maximum of 15% of the market value — or the applicable cash cap, whichever is lower.
This is a substantial reduction from the previous scheme. Before November 2024, maximum cash discounts reached £102,400 across England and £136,400 in London boroughs. From November 2024, maximum cash discounts were reset to pre-2012 levels: ranging from £16,000 to £38,000 depending on region. The new percentage-based structure subject to this cash cap represents a further restructuring of how the discount operates.
The practical effect of these reforms is that the financial benefit of Right to Buy is significantly lower than it was for tenants who applied before November 2024. A London flat worth £400,000 with a 10% discount under the new rules would see a discount of £40,000 — but subject to the London cash cap of £38,000, meaning the actual discount would be capped at £38,000.
The Cost Floor: An Additional Constraint
The cost floor rule prevents properties from being sold for less than the amount the council has invested in them — through building, buying, repairing, and maintaining the property. This prevents situations where a heavily refurbished property is sold below what was spent on it.
The cost floor period has been extended from 15 to 30 years as part of the recent reforms, and further strengthening of the cost floor is under consideration. In practical terms, this means that if a property has been significantly invested in within the last 30 years, the effective discount may be reduced below what the tenancy length and percentage formula would otherwise produce.
The Repayment Period and Resale Rules
If you buy your home under Right to Buy and then sell it within a defined period, you may be required to repay part or all of the discount you received. The repayment period has been doubled from 5 to 10 years as part of the recent reforms.
The amount repayable reduces over time within that period. In addition, as part of the reforms, local authorities now hold a right of first refusal on resales that applies in perpetuity — meaning if you sell at any point after purchase, the council has the right to buy the property back before you can sell to a third party.
This right of first refusal in perpetuity is one of the most significant changes for prospective buyers to understand. It effectively means that council properties purchased under Right to Buy can always be reacquired by the council, which may affect the property’s attractiveness to some future private buyers and is worth factoring into any long-term ownership plan.
Newly Built Properties Are Now Exempt
Any social home built after 2025 is exempt from Right to Buy for a period of 35 years. This means that tenants placed in newly built council housing will not be able to exercise Right to Buy on those properties for the first 35 years of the property’s life. The exemption is designed to protect the social housing stock that councils are investing in building, and to give councils confidence that new homes will not immediately re-enter private ownership.
The Application Process
The formal application is made using a Right to Buy application form (RTB1), submitted to the council. The council then has four weeks to respond confirming or denying eligibility, or eight weeks if it is a housing association and the council needs to carry out further checks.
If eligibility is confirmed, the council arranges an independent valuation of the property. You have the right to challenge the valuation by applying for an independent valuation from the District Valuer Service if you believe it is too high.
Once the valuation is agreed, the council issues a Section 125 notice setting out the purchase price, the discount, and any structural conditions the council is aware of. You then have a defined period to proceed with or withdraw from the purchase. Most buyers use a mortgage to fund the gap between the discount and the full purchase price. Lenders treat Right to Buy purchases in the same way as standard mortgage applications — the discount does not substitute for a deposit, but it can contribute to the equity the lender assesses.
For official and up-to-date Right to Buy guidance, check: GOV.UK — Right to Buy
Is Right to Buy Still Worth Considering?
The honest answer is that the financial case for Right to Buy is now significantly weaker than it was before the 2024 and 2026 reforms. The combination of the lower cash discount cap, the percentage-based structure capped at 15%, the 10-year eligibility requirement, the extended repayment period, and the perpetual right of first refusal on resale all reduce both the immediate financial benefit and the long-term ownership freedom the scheme previously provided.
For tenants who have genuinely lived in social housing for ten or more years, who have stable employment and mortgage eligibility, and whose property has a market value that makes even a capped discount meaningful, Right to Buy may still represent the most accessible route to homeownership they are likely to encounter. But it should be entered with clear-eyed understanding of the costs of ownership — mortgage repayments, service charges if the property is a leasehold flat, maintenance, and buildings insurance — alongside an honest assessment of whether purchasing this specific property at this specific price is the right long-term decision.
For independent advice on housing and homeownership options, check: Shelter — Right to Buy
Conclusion
Right to Buy in 2026 is a substantially reformed scheme compared to the version that existed before 2024. The minimum tenancy requirement is moving to ten years, discounts are lower, the repayment period is longer, the right of first refusal on resale is now permanent, and newly built social homes are protected for 35 years. The scheme still exists and still provides a meaningful discount to those who qualify — but the financial case requires more careful analysis than it did when discounts were larger and rules were less restrictive.
If you believe you might be eligible, take specific advice based on your exact tenancy length, property type, and current market value before making any decisions.
Frequently Asked Questions
Who is eligible for Right to Buy in 2026?
Eligible applicants must be secure council tenants in England who have lived in public sector housing for at least ten years under the reformed rules, do not currently own another property, and have not previously used the scheme. Some housing association tenants with Preserved Right to Buy rights may also qualify.
How much discount can you get under Right to Buy in 2026?
Under the reforms confirmed in April 2026, discounts start at 5% of the property’s market value after ten years and increase by 1% per year up to a maximum of 15% — subject to regional cash caps of between £16,000 and £38,000 depending on location. These are significantly lower than the pre-November 2024 maximums
Can you sell a Right to Buy property immediately after purchase?
No — if you sell within ten years of purchasing under Right to Buy, you must repay some or all of the discount you received. The repayment period was extended from five to ten years under the 2024 reforms. Additionally, the council now holds a right of first refusal on any resale that applies indefinitely.
