Who is eligible for Right to Buy in England?

You must be a secure council tenant or assured housing association tenant, have lived in public sector housing for at least 3 cumulative years, and the property must be your main and only home. You must not be bankrupt or subject to a possession order.

What is the maximum Right to Buy discount in 2025/26?

The discount is capped at 70% of property value or the monetary cap, whichever is lower. In 2025/26 the cap is £87,200 in England and £116,200 in London. Houses start at 35% discount after 3 years plus 1% per additional year. Flats start at 50% plus 2% per additional year.

Do I need a deposit to use Right to Buy?

Most buyers do not need a cash deposit because the discount acts as equity. Many lenders offer a 100% mortgage based on the discounted purchase price. You still need cash for legal fees around £1,000-£2,000, a survey around £300-£600, and mortgage arrangement fees.

What is the 5-year clawback on Right to Buy?

If you sell within 5 years, you repay a proportion of the discount: 100% in year 1, 80% in year 2, 60% in year 3, 40% in year 4, and 20% in year 5. Crucially the repayment is based on the current sale price not the original purchase price, so a rising property market increases the amount owed.

Does Right to Buy apply in Scotland and Wales?

No. Scotland abolished Right to Buy in 2016 and Wales abolished it in 2019. The scheme currently applies only in England, with a separate but similar scheme in Northern Ireland. Some housing associations in England are also exempt from the scheme.

UK Right to Buy Calculator

Calculate your Right to Buy discount as a council or housing association tenant in England. Uses 2025/26 caps (£87,200 England / £116,200 London). Includes the full discount table by years of tenancy, 5-year clawback schedule, right of first refusal explained, and 20-year rent vs buy financial comparison.

Property Type

Property Value

Years as Secure Tenant

Region

Mortgage Rate

Mortgage Term (years)

Right to Buy Discount

£87,200

34.9% effective discount on £250,000 · Cap applied (£87,200 max)

Purchase Price After Discount

£162,800

Monthly Mortgage Payment

£933

Max Discount Cap (England)

£87,200

Years Qualified (8 years)

Eligible

Advanced

Advanced Analysis

Full discount table, eligibility checklist, total cost of buying

The Right to Buy discount increases with each year of qualifying tenancy, up to a maximum of 70% or the monetary cap, whichever comes first.

Years as Tenant	House Discount	Flat Discount	Discount on £250K (house)	Purchase Price (house)
3 years	35% (capped)	50%	£87,200	£162,800
4 years	36% (capped)	52%	£87,200	£162,800
5 years	37% (capped)	54%	£87,200	£162,800
6 years	38% (capped)	56%	£87,200	£162,800
7 years	39% (capped)	58%	£87,200	£162,800
8 years	40% (capped)	60%	£87,200	£162,800
10 years	42% (capped)	64%	£87,200	£162,800
12 years	44% (capped)	68%	£87,200	£162,800
15 years	47% (capped)	70%	£87,200	£162,800
20 years	52% (capped)	70%	£87,200	£162,800
25 years	57% (capped)	70%	£87,200	£162,800
30 years	62% (capped)	70%	£87,200	£162,800
35 years	67% (capped)	70%	£87,200	£162,800

Houses: discount starts at 35% after 3 years, +1% per additional year, maximum 70%. Flats: start at 50%, +2% per year, maximum 70%. Discount caps (2025/26): London £116,200, Rest of England £87,200.

Pro

Professional Simulator

Discount clawback table, right of first refusal, 20-year financial analysis

If you sell within 5 years of buying, you must repay a portion of the discount. The clawback is based on the proportion of the original discount, applied to the current sale price — not the original purchase price.

Year of Sale	Discount Repaid	Amount Repaid (£87,200 discount)	Example: Sell at £262,500
Year 1	100% of discount	£87,200	£91,560
Year 2	80% of discount	£69,760	£73,248
Year 3	60% of discount	£52,320	£54,936
Year 4	40% of discount	£34,880	£36,624
Year 5	20% of discount	£17,440	£18,312
Year 6+	0% — no clawback	£0	£0

The clawback is calculated on the sale price, not the purchase price. If your home rises in value and you sell in year 1, you repay more than 100% of your original discount. Factor this into your plans carefully.

How to Use This Right to Buy Calculator

Select your property type (house or flat), enter the current property value and your years as a secure tenant, and choose your region (London or rest of England). The calculator shows your Right to Buy discount, the discounted purchase price, and estimated monthly mortgage payment.

What You Need to Apply

At least 3 years as a secure council tenant (or assured housing association tenant where applicable)
The property must be your main and only home
No outstanding bankruptcy or possession orders
The property must not be scheduled for demolition or held for charitable purposes

Right to Buy applies in England only. Scotland abolished the scheme in 2016 and Wales in 2019.

Right to Buy Discount Rules 2025/26

Houses:
35% discount after 3 qualifying years
+1% per additional year above 3, up to 70% maximum
Monetary cap: £87,200 (England) / £116,200 (London)

Flats and maisonettes:
50% discount after 3 qualifying years
+2% per additional year above 3, up to 70% maximum
Same monetary caps apply

Example: 10 years as tenant, house worth £200,000
Discount = 35% + 7% = 42% = £84,000
Purchase price = £116,000

Earlier public sector tenancies (council housing in different areas, NHS accommodation, police housing) can count toward the qualifying period. Speak to your landlord about combining tenancy periods.

The 5-Year Discount Clawback

If you sell your Right to Buy property within 5 years of purchase, you must repay a proportion of the discount. The clawback is calculated as a percentage of your original discount applied to the current sale price — not the original purchase price. This means if your property has risen in value, you repay more than your original discount in year 1.

Year 1 sale: repay 100% of proportionate discount
Year 2 sale: repay 80% of proportionate discount
Year 3 sale: repay 60% of proportionate discount
Year 4 sale: repay 40% of proportionate discount
Year 5 sale: repay 20% of proportionate discount
Year 6+: no clawback

Example: Right to Buy Calculation

David buying his council house after 12 years in Leicester

David has been a secure council tenant for 12 years in a house valued at £220,000 in Leicester (rest of England).

Property Value	£220,000
Years as Tenant	12 years
Discount Rate (house)	35% + 9% = 44%
Discount Amount (44%)	£96,800
Discount Cap (England)	£87,200 applied
Purchase Price	£132,800
Monthly Mortgage (4.8%, 25yr)	£762/month
Instant Equity	£87,200

David had been paying £850/month in rent. His mortgage is lower, and he immediately owns £87,200 of equity in the property.

Frequently Asked Questions

You must be a secure council tenant or assured housing association tenant (where the scheme applies), have lived in public sector housing for at least 3 years (cumulative, not necessarily consecutive), and the property must be your main and only home. You must not be bankrupt, subject to a possession order, or have an anti-social behaviour injunction against you.

The discount is capped at 70% of the property value or the monetary cap, whichever is lower. In 2025/26 the monetary cap is £87,200 in England and £116,200 in London. The cap is reviewed annually. To reach 70%, you need at least 38 qualifying years for a house (35% + 35 years at 1% each) or 13 years for a flat (50% + 10 years at 2% each).

Most Right to Buy buyers do not need a cash deposit because the discount acts as equity. Many lenders will offer a 100% mortgage based on the discounted purchase price, using your built-up discount as the effective deposit. You will still need cash to cover legal fees (around £1,000-£2,000), a survey (£300-£600), and any mortgage arrangement fees.

No. The right of first refusal means you must offer the property to your former landlord first if you decide to sell within 10 years, but you cannot be forced to sell. If the landlord declines or does not respond within 8 weeks, you sell on the open market. The sale is always at full market value — you are not forced to accept a below-market price.

If you sell in year 3, you repay 60% of the discount. Importantly, the repayment is based on the current sale price, not your original purchase price. So if the property has risen in value, you repay more in cash than you originally received as a discount. After 5 years there is no clawback obligation. After 10 years the right of first refusal also ends.