Right to Buy Scheme
What you need to know
The Right to Buy scheme is a policy in the United Kingdom that allos tenants of councils and certain housing associations to buy their council home at a significant discount.
Housing association tenants are eligible for a similar scheme called Right to Acquire, but it does have slightly different eligibility and rules.
There are various criteria to meet, such as being a council or housing association tenant for at least three years, although these might not be consecutive years.
The market value of your home will be determined, and the Right to Buy discount will be measured based on that value.
What is Right To Buy?
The Right to Buy scheme is a policy in the United Kingdom that allows tenants of councils and certain housing associations to buy their council home at a significant discount.
There are various criteria to meet, such as being a council or housing association tenant for at least three years, although these might not be consecutive years.
Housing association tenants are eligible for a similar scheme called Right to Acquire, but it does have slightly different eligibility and rules.
The market value of your home will be determined, and the Right to Buy discount will be measured based on that value.
You get a 50% discount if you’ve been a public sector tenant for between 3 and 5 years.
It's worth having a chat!
We know it gets confusing!
That is exactly why we’re here to explain your options and how to make it work for you!
....so, in a nutshell...
Right To Buy is simply a scheme that enables you to buy the property you already live in.
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It starts with a discount. Yay!
The market value of your home will be determined, and the Right to Buy discount will be measured based on that value.
The Right to Buy discount is different depending on where you live in the country, how long you’ve been a council resident, and whether you own a house or a flat.
How much is the Right to Buy discount?
It varies depending on whether you live in a house or a flat. It applies to the total time you’ve been a public-sector tenant, not just the time you’ve lived in your current home.
Houses
Flats
You get a 50% discount if you’ve been a public sector tenant for between 3 and 5 years.
It starts with an application
You apply for Right to Buy by sending your landlord a completed application form, and they will reply with a bid. The following will be outlined:
- The price they believe you should pay for your property
- How the price was worked out
- Your Right to Buy discount and how it was calculated
- Description of the property, plus any land, that is included in the price
- Estimates of service charges (for a flat or maisonette) for the first five years
- Any existing problems with the property’s structure
If the council or housing association denies the Right to Buy application, they must explain why.
You have the same options available to you
Right to Buy mortgages operate in the same way as traditional residential mortgages. In reality, everyone buying a council home through the Right to Buy scheme has the same mortgage options as anyone else.
The amount you can borrow is determined by the property’s market value, the size of your deposit, and other factors such as your income and credit history.
Our role is to help you make an informed decision
There are many aspects to all types of Right to Buy mortgages and we understand that you need to make the best decision.
You will undoubtedly have many more questions, so please feel comfortable enough to arrange a free, no-obligation chat!
Frequently Asked Questions
Here are a few of the questions we regularly answer for those who are wondering if this is the correct choice.
Just remember, we’re ready to chat and answer many more!
Here are a few of the questions we regularly answer for those who are wondering if this is the correct choice.
No, you can only buy the house or flat in which you currently reside, so you won’t be able to pick where you want to live.
You probably have the Right to Buy if you’re a secure council tenant and have spent at least 3 years as a public-sector tenant. The 3 years doesn’t have to be continuous, and you can add together any time you have spent as a public-sector tenant, such as a council, housing association or government department. Eligibility criteria also include having no legal issues with debt or any outstanding possession orders.
Yes, you can, but only certain people can join an application. If you are eligible, you may be able to buy with someone who is on the tenancy agreement with you, your spouse or civil partner (As long as they are on the tenancy agreement), or up to three family members who have been living in your home for 12 months immediately before you make the application. All parties to the mortgage have to be on the tenancy agreement.
Sometimes but rarely. The mortgage lender who offers you the mortgage for the Right to Buy will give you a much cheaper interest rate because you will use the full deposit as the deposit.
Just note that not all mortgage lenders offer Right to Buy mortgages.
For flats, you get a 50% discount if you’ve been a public sector tenant for between 3 and 5 years. After 5 years, the discount goes up 2% for every extra year you’ve been a public sector tenant, up to a maximum of 70% or £96,000 across England and £127,900 in London boroughs (whichever is lower).
For houses, you get a 35% discount if you’ve been a public sector tenant for between 3 and 5 years.
No, you can only buy the house or flat in which you currently reside, so you won’t be able to pick where you want to live.
You probably have the Right to Buy if you’re a secure council tenant and have spent at least 3 years as a public-sector tenant. The 3 years doesn’t have to be continuous, and you can add together any time you have spent as a public-sector tenant, such as a council, housing association or government department. Eligibility criteria also include having no legal issues with debt or any outstanding possession orders.
Yes, you can, but only certain people can join an application. If you are eligible, you may be able to buy with someone who is on the tenancy agreement with you, your spouse or civil partner (As long as they are on the tenancy agreement), or up to three family members who have been living in your home for 12 months immediately before you make the application. All parties to the mortgage have to be on the tenancy agreement.
Sometimes but rarely. The mortgage lender who offers you the mortgage for the Right to Buy will give you a much cheaper interest rate because you will use the full deposit as the deposit.
Just note that not all mortgage lenders offer Right to Buy mortgages.
For flats, you get a 50% discount if you’ve been a public sector tenant for between 3 and 5 years. After 5 years, the discount goes up 2% for every extra year you’ve been a public sector tenant, up to a maximum of 70% or £96,000 across England and £127,900 in London boroughs (whichever is lower).
For houses, you get a 35% discount if you’ve been a public sector tenant for between 3 and 5 years.
