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What is the Right to Buy scheme?
Right to buy is a government scheme that lets eligible council and housing association tenants in England buy the home they live in at a discounted price. The longer you've rented, the bigger your discount, up to a maximum set by the government each year.
The scheme launched in the 1980s and has helped over 2 million people become homeowners. It's one of the few ways you can buy a property without needing a separate cash deposit.
Right to buy is only available in England. Scotland ended the scheme in 2016 and Wales ended it in 2019.
What is the Right to Buy scheme?
The Right to Buy scheme is a government home ownership scheme available in England. It allows eligible council and housing association tenants to purchase their home at a discounted price.
There are a few criteria you’ll need to meet in order to be eligible for the scheme. There also may be restrictions depending on your property type, or where it’s based.
Right to Buy eligibility - do you qualify?
You must be:
You must not:
The property must be:
How much is the Right to Buy discount?
The size of your discount depends on the total amount of time you’ve been a public sector tenant, the type of property (house or flat) and where it's based, as the discount limit is higher in London than the rest of the country.
Your home will be given a market value evaluation by the scheme, and the discount will be awarded as follows:
If you live in a council house
Three to five years as a public sector tenant - 35% discount
More than five years as a public sector tenant - 35% +1% per additional year as a tenant, up to a maximum of 70%)
If you live in a council flat
Three to five years as a public sector tenant - 50% discount
After five years as a public sector tenant - 50% +2% per additional year as a tenant, up to a maximum of 70%)
Maximum discount
The maximum discount available is the lower of the following:
70% of your property's value
The regional discount cap
| Region | Maximum discount |
|---|---|
| North East England | £22,000 |
| North West England | £26,000 |
| Yorkshire & The Humber | £24,000 |
| East Midlands | £24,000 |
| West Midlands | £26,000 |
| East England | £34,000 (£16,000 in Watford) |
| South East England | £38,000 (£16,000 in Reading Borough and West Berkshire, Hart District, Oxford and Vale of the White Horse District, the boroughs of Tonbridge and Malling, Epsom and Ewell, and Reigate and Banstead) |
| South West England | £30,000 |
| London | £16,000 (£38,000 in the boroughs of Barking, Dagenham & Havering) |
For more information, you can find it at the gov.uk website
Can you use the Right to Buy discount to pay your deposit?
Yes, lenders will allow you to use your discount in place of a deposit, meaning you won’t need to save as much.
One of the biggest advantages of Right to Buy is that most mortgage lenders will accept your government discount in place of a cash deposit. That means you don't need to have savings, the discount does the work.
For example, if your home is worth £180,000 and you qualify for a 40% discount, you'd pay £108,000. The £72,000 discount acts as your deposit, giving you a loan-to-value (LTV) of 60%, a level that unlocks competitive mortgage rates.
Can I get a 100% right to buy mortgage?
In some cases, yes. Barclays offers a Right to Buy (RtB) mortgage that requires no cash deposit at all. It uses the RTB discount in place of a direct deposit, so you’re considered to have a deposit equivalent to your discount percentage. Lending is capped at 90% of the full open market value, and the product excludes high-value properties where a deposit is still required.
Other lenders including Halifax and Nationwide also accept the discount as a full deposit, though their criteria and maximum LTV limits vary.
For example, if you receive a 40% discount, Barclays treats this as a 40% deposit, giving you access to 60% LTV rates rather than the higher rates that typically come with low-deposit borrowing.
If your discount doesn’t cover the lender’s minimum deposit requirement, you may need to save a small amount on top. A mortgage broker can help you find the right lender for your situation.
How to get a Right to Buy mortgage
The right to buy process runs alongside your mortgage application, here's how it works from start to finish.
Step 1. Check your eligibility on GOV.UK and confirm your home is included in the scheme.
Step 2. Fill in the right to buy application form (RTB1) and send it to your landlord.
Step 3. Your landlord has 4 weeks to respond (8 weeks if they've been your landlord for less than 3 years).
Step 4. If approved, you'll get a Section 125 notice detailing the property's value and your discount. This is the figure lenders use to assess your mortgage.
Step 5. Speak to our mortgage broker partner to find the best right to buy mortgage rate for your situation.
Step 6. Apply for your mortgage. You'll typically need proof of income, ID, bank statements, and your Section 125 notice.
Step 7. Once your mortgage is approved, your solicitor handles the rest. You could complete in as little as 8 weeks.
You have 12 weeks to accept the Section 125 offer. If you need more time, you can request an extension.
Right to Buy mortgage lenders
Not every lender offers right to buy mortgages, but there are options across the market. Here are some of the main lenders and what to look out for.
Barclays - offers a 0-deposit right to buy mortgage, using the RTB discount in place of a direct deposit. Lending is capped at 90% of the open market value. High-value properties may still require a deposit.
Halifax - accepts the right to buy discount as a deposit and offers fixed-rate deals for right to buy customers. Criteria assessed on application.
NatWest - accepts the right to buy scheme and counts the discount toward the deposit requirement. Criteria assessed case by case.
Coventry Building Society - accepts the right to buy discount as deposit with no additional cash deposit required in most cases.
Santander - accepts the discount as a deposit. Requires the property to be in good structural condition.
Rates and criteria change regularly. Use a whole-of-market mortgage broker for access to a wide range of lenders.
Right to Buy mortgage FAQs
Can I buy any council house with a Right to Buy mortgage?
No you can’t. You only have the option to buy the property that you currently rent.
Can I use Right to Buy if I’m a housing association tenant?
There is a very similar scheme available to housing association tenants, known as the Right to Acquire scheme. The discount available is not as large, but it can still offer a more affordable path to home ownership.
Can you sell your Right to Buy home?
Yes, but you would have to pay back some of your discount if you sell it within five years of buying it. If you sell it within 10 years, it has to be offered back to the landlord before private buyers.
Can I rent out my Right to Buy property?
Not really, as the scheme was introduced to help tenants buy a residential home of their own. You’ll also need to consider that residential mortgages will usually have a clause preventing you from renting out your home, as you need a Buy to Let mortgage in order to do this, and these are not offered to Right to Buy applicants.
Can I get a Right to Buy mortgage if I am self employed?
Being self-employed won’t make you ineligible for the scheme, or to get a mortgage, so long as you’re able to adequately prove your income.
Can your Right to Buy application be refused?
You can be refused access to the scheme if you do not meet the required criteria.
If your landlord refuses your application they must provide objective reasons, which you have the right to appeal against, should you disagree.
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