Right to Buy Mortgages: 2026 Guide

Right to Buy lets eligible council tenants in England buy their home for less than its market value. It still exists, but the discount is far smaller than many older guides suggest. Since 21 November 2024 the maximum discount has been between £16,000 and £38,000, depending on where you live.

The good news for mortgages is that lenders usually treat your discount as your deposit, so many buyers need little or no cash deposit of their own.

Who can use Right to Buy?

According to GOV.UK, you may qualify if:

• You are a secure tenant of a council.
• The home is your only or main home and is self-contained.
• You have had a public sector landlord, such as a council, housing association or NHS trust, for at least 3 years. The 3 years do not need to be in a row.

You can apply jointly with someone who shares your tenancy, or with up to 3 family members who have lived with you for the last 12 months. Housing association tenants may have the Right to Acquire or a Preserved Right to Buy instead.

Right to Buy has ended in Scotland and Wales, and Northern Ireland has its own house sales scheme.

How much discount can you get?

The discount starts as a percentage of your home’s value and then hits a cash cap. Under the current GOV.UK discount rules:

• Houses: 35% after 3 to 5 years as a public sector tenant, plus 1% for each extra year.
• Flats: 50% after 3 to 5 years, plus 2% for each extra year.
• Maximum: the lower of 70% of the value or your area’s cash cap.

Region	Maximum discount
North East	£22,000
North West	£26,000
Yorkshire and the Humber	£24,000
East Midlands	£24,000
West Midlands	£26,000
East of England	£34,000 (£16,000 in Watford)
South East	£38,000 (£16,000 in some council areas)
South West	£30,000
London	£16,000 (£38,000 in Barking and Dagenham and Havering)

Because the cash caps are now so low, most tenants will reach the cap well before the percentage limit. You also get no discount if your landlord has spent more on your home than it is now worth, known as the cost floor rule.

Getting a mortgage for Right to Buy

Right to Buy mortgages are normal residential mortgages, but not every lender offers them, and those that do have their own rules.

• Your discount as a deposit. Many lenders count the discount as equity, so you may not need a cash deposit. Some lenders cap the loan at a percentage of the purchase price rather than the value, so check before you apply.
• Affordability. The lender still checks your income, outgoings and credit history. Benefits and pension income may be accepted by some lenders.
• Joint applicants. Family members on the application can strengthen affordability, but anyone named on the mortgage is responsible for the whole loan.
• Flats. Lenders look closely at lease terms, service charges, the building’s construction and any major works planned.
• Credit history. Past missed payments or defaults do not automatically rule you out. See our bad credit mortgage guide.

Some lenders will count certain benefits, such as Child Benefit or disability benefits, as income. Housing Benefit and the housing element of Universal Credit are not counted, because they stop once you own the home. Self-employed applicants usually need accounts or tax calculations for at least one or two years.

Lenders are also wary of arrangements where someone else is funding the purchase in return for the property later. If a third party offers to pay for your Right to Buy, take independent legal advice before agreeing to anything.

Things to consider before buying

• Repairs become yours. Roofs, boilers and windows are no longer the council’s responsibility.
• Flats carry extra costs. Service charges and major works bills can be large. Your Section 125 notice should list known works for the next five years.
• Benefits may change. Housing support usually stops once you own the home.
• Regeneration. If your estate is due for redevelopment, ask the council about its plans before buying.

The Right to Buy process

1. Apply to your council using the RTB1 form.
2. The council responds, normally within 4 weeks, or 8 weeks if your landlord has not owned the property long enough to check your history.
3. You receive a Section 125 offer notice setting out the valuation, your discount, the price and, for flats, the service charges. If you think the valuation is too high, you can ask for it to be reviewed by the District Valuer.
4. Arrange your mortgage. Get an agreement in principle once you know the price, then make a full application.
5. Instruct a conveyancer and consider a survey. Older council homes can need significant work, so a survey is worth considering.
6. Complete the purchase and become the owner.

Selling within 10 years

Under the GOV.UK selling rules:

• Within 10 years, you must first offer the home to your former landlord or another local social landlord at full market price.
• Within 5 years, you repay some of your discount: all of it in year 1, then 80%, 60%, 40% and 20%. The amount is based on your home’s value when you sell, not the original discount.

Proposed changes to Right to Buy

The Social Housing Bill, introduced to Parliament on 14 May 2026, proposes further changes. At the time of our October 2026 review these were not yet law:

• A longer qualifying period, of up to 10 years as a public sector tenant.
• Discounts starting at 5% and rising by 1% a year to a maximum of 15% or the cash cap, whichever is lower.
• The discount repayment period extended from 5 to 10 years.
• The right of first refusal applying indefinitely.
• New social homes exempt from Right to Buy for 35 years.

If you are thinking about buying, check the rules that will apply to your application with your council, and get advice before relying on today’s terms.

Stamp Duty and buying costs

If you are a first-time buyer in England, you pay no Stamp Duty on the first £300,000, so most Right to Buy purchases pay none. If you or a joint buyer already own property elsewhere, standard or higher rates may apply. You will also need to budget for legal fees, a survey and any lender fees. Use our Stamp Duty calculator.

Right to Buy FAQs

Talk to us about your Right to Buy

We can check which lenders will accept your discount as a deposit, how much you could borrow and what the purchase will cost in total. Your initial consultation is free.