Skip to main content

Council home purchase guide

Right to Buy mortgages: discount, deposit and property checks

Eligible council tenants in England can buy their main home at a discount. A Right to Buy approval and landlord offer do not guarantee a mortgage: the lender still assesses affordability, credit, the property and whether it accepts the discount as part or all of the buyer's equity.

England rules reviewed 16 July 2026

This guide covers England. Scotland and Wales have ended Right to Buy and Northern Ireland has separate rules. Government policy can change, so confirm the current position with your landlord and GOV.UK before relying on a discount.

Basic Right to Buy eligibility

GOV.UK says applicants generally need the property to be their only or main home, the property to be self-contained, secure tenancy status, and at least three years with a public-sector landlord. The three years do not have to be continuous. Joint applications can include another tenant and up to three qualifying family members who have lived in the home for the previous 12 months.

Some homes and tenants are excluded. A former council tenant transferred to a housing association may have Preserved Right to Buy. Housing association tenants without that right may need to check Right to Acquire instead.

Current regional maximum discounts

For applications received on or after 21 November 2024, the maximum is the lower of 70% of the property value and the regional cash cap. The actual discount also depends on property type, eligible tenancy years, previous use of the scheme and the landlord's qualifying expenditure.

RegionMaximum cash discount published by GOV.UK
North East£22,000
North West£26,000
Yorkshire and the Humber£24,000
East Midlands£24,000
West Midlands£26,000
Eastern£34,000, with specified £16,000 exceptions
South East£38,000, with specified £16,000 exceptions
South West£30,000
London£16,000, except £38,000 in Barking and Dagenham and Havering

GOV.UK lists the exact councils covered by the £16,000 exceptions. Applications made before 21 November 2024 can fall under the previous caps.

Can the discount be the mortgage deposit?

Some lenders treat the difference between market value and discounted purchase price as equity and may not require a separate cash deposit. Other lenders can require buyer funds or apply a maximum loan based on the discounted price, market valuation or their own policy. Product choice also depends on affordability, credit and property type.

Keep cash for legal work, survey or specialist reports, mortgage costs, moving, immediate repairs and an emergency fund. The discount does not pay those costs.

Review the landlord's offer

The offer should show the valuation, price, discount calculation, property and land included, known structural issues and, for a flat or maisonette, estimates of service charges for the first five years. GOV.UK provides a process and deadline for requesting an independent district valuation if you believe the market value is too high.

Leasehold and property risks

  • Service and major works: a low purchase price does not limit future leasehold charges. Review planned works and reserve funds.
  • Construction: non-standard systems, structural defects, cladding or high-rise features can restrict lender and insurer choice.
  • Lease length: the remaining term can affect value and mortgageability.
  • Covenants: restrictions can affect letting, alterations and future sale.
  • Homeowner costs: after completion you take on repairs, insurance arrangements and mortgage risk that were different as a tenant.

Selling after Right to Buy

Selling within five years normally requires repayment of some or all of the discount. GOV.UK sets the starting scale at 100% in year one, then 80%, 60%, 40% and 20% in years two to five. The amount can reflect the home's value when sold, not simply the original cash discount. If selling within ten years, the home must normally be offered first to the former landlord or another social landlord in the area at full market value. Rural restrictions can also apply.

Right to Buy mortgage checklist

  1. 1. Confirm eligibility and discount with the landlord before planning around a specific mortgage amount.
  2. 2. Get the full offer documents and ask a conveyancer to explain title, lease and restrictions.
  3. 3. Inspect the property with an appropriate survey, especially for a flat or non-standard construction.
  4. 4. Model ownership costs including mortgage, service charge, repairs, insurance and future rate changes.
  5. 5. Compare lender scope and fees before allowing a formal credit search or submitting an application.

Request a Right to Buy broker match

An introduction is free and does not guarantee mortgage eligibility or approval.

Request a broker match