How to exercise your Right to Buy
Right to Buy allows most council tenants who have lived in their council home for five years to buy it at a discount.
The maximum discount is £777,900 for anywhere in England (up to £103,900 in London). The size of the discount you qualify for depends on how long you have lived there, the value of the property and whether it is a flat or a house.
For houses you get a 35% discount if you’ve been a public sector tenant for 5 years. For every extra year you’ve been a public sector tenant, the discount goes up by 1%, up to a maximum of 60% – or £77,900 (whichever is lower).
For flats you get a 50% discount if you’ve been a public sector tenant for 5 years. For every extra year you’ve been a public sector tenant, the discount goes up by 2%, up to a maximum of 70% – or £77,900 (whichever is lower).
Your landlord must complete parts of your Right to Buy application within set time limits. If they don’t, you could get a reduction in the sale price.
Selling your property
If you sell your home within 10 years of buying it through Right to Buy, you must first offer it to either your old landlord or another social landlord in the area.
If the landlord doesn’t agree to buy your home within 8 weeks, you can sell it to anyone.
Paying back your discount
If you sell your Right to Buy home within 5 years of buying it, you’ll have to pay back some or all of the discount you got. If you sell within the first year, you’ll have to pay back all of the discount.
On top of this, the amount you pay back depends on the value of your home when you sell it.
So, if you got a 20% discount, you’ll have to pay back 20% of the selling price.
If you sell after the first year, the total amount you pay back reduces. You pay back:
- 80% of the discount in the second year
- 60% of the discount in the third year
- 40% of the discount in the fourth year
- 20% of the discount in the fifth year
Your landlord may limit who you can sell your home to if your home is in:
- a national park
- an area of outstanding natural beauty
- an area the government says is rural for Right to Buy
For example, you may have to sell your home to someone who’s lived or worked in the area for more than 3 years. This may mean you have difficulty getting a mortgage to buy your home.
Preserved Right to Buy
If you are a housing association tenant, you probably won’t have the right to buy your home. But if you were a secure council tenant and were living in your home when it was transferred from your council to another landlord, like a housing association, then you may have a ‘Preserved’ Right to Buy.
If you have the Preserved Right to Buy, then you can buy your home under the scheme as if you were still a council tenant. Your landlord will be able to tell you whether you have the Preserved Right to Buy or click here to take the government’s eligibility test.