For many council tenants in England, the dream of owning their home is closer than they might think, thanks to the Right-to-Buy scheme. Introduced in the 1980s under the Housing Act, this government initiative allows eligible tenants to purchase their council home at a significant discount. With the help of specialised right-to-buy mortgages, this opportunity has become a practical pathway to homeownership for thousands. In this blog post, we’ll explore how the Right-to-Buy scheme works, who qualifies, and how these tailored mortgages can make the transition from tenant to homeowner a reality in 2025.
What Is the Right-to-Buy Scheme?
The Right-to-Buy scheme empowers secure council tenants and some housing association tenants with preserved rights to buy the home they’ve been renting at a discounted price. The discount is based on how long you’ve been a public sector tenant and the type of property you live in, making it an attractive option for those who’ve called their council house or flat home for years.
As of March 2025, the scheme remains a cornerstone of UK housing policy, though it’s worth noting that discount levels were adjusted in November 2024. Previously, tenants could enjoy discounts of up to £102,400 (£136,400 in London), but these have now been reduced to a range of £16,000 to £38,000, depending on your location. Despite this change, the scheme continues to provide a significant advantage in entering the property market, particularly when combined with a Right-to-Buy mortgage.
Are You Eligible?
Before you start envisioning your name on the deeds, let’s check if you qualify. The eligibility criteria for Right-to-Buy are straightforward but strict:
- Tenancy History: You must have been a tenant with a council for at least three years. These don’t need to be consecutive years, and time spent in different public sector properties can count.
- Secure Tenancy: You need to be a secure tenant, meaning you have a formal tenancy agreement with your landlord.
- Main Residence: The property must be your main home—no holiday lets or second properties qualify.
- No Legal Issues: You shouldn’t have significant issues with your landlord such as breaches of tenancy or rent arrears.
- Property Eligibility: The home must be self-contained (no shared kitchens or bathrooms with other households) and not exempt (e.g., sheltered housing for the elderly).
If your home was once council-owned but transferred to a housing association while you lived there, you might have what’s called a “Preserved Right-to-Buy.” Please consult your landlord to confirm. Housing association tenants without this preserved right may instead qualify for the Right-to-Acquire scheme, which offers smaller discounts (£9,000 to £16,000), but that’s a topic for another day.
Joint applications are also possible; you can apply with your spouse, a co-tenant, or up to three family members who’ve lived with you for at least 12 months, even if they’re not on the tenancy agreement. This technique can boost affordability when securing a mortgage.
How Does the Discount Work?
The discount, once the cornerstone of Right-to-Buy, is now somewhat less generous than in the past. As of late 2024, the maximum cash discounts range from £16,000 to £38,000 across England, with the exact amount depending on your region. The previous caps, tied to inflation, were significantly higher.
For houses, you get a base discount after three years of tenancy up to 5 years, which then increases by 1% each year up to the cap. For flats, the starting discount is higher after three years up to 5 years, rising by 2% annually, though still subject to the new regional cash limits. Your landlord will provide an official valuation and discount offer once you apply, so you’ll know exactly what you’re working with.
Right-to-Buy Mortgages: Bridging the Gap
Even with a discount, most tenants need financial help to buy their home outright. That’s where Right-to-Buy mortgages come in. These specialised loans are designed to work with the scheme, taking into account the discounted purchase price rather than its full market value. Here’s how they can help:
- Lower Deposits: Because you’re buying at a discount, the deposit required is often smaller than for a standard mortgage. Most lenders do not require an additional cash deposit at all and will accept the discount as the deposit.
- Flexible Criteria: Lenders familiar with Right-to-Buy understand council tenants may not have a long credit history or high savings. This allows them to purchase a property with a lower and more affordable deposit if required.
- Joint Applications: If you’re applying with others, their income can be factored in, making the mortgage more achievable.
Start by filling out the RTB1 application form, which you can get from your council or online at GOV.UK. Once the council approves and provides an offer, you’ll have 12 weeks to accept and arrange financing. Shopping around for a Right-to-Buy mortgage is key; specialist brokers can help you find lenders offering competitive rates and terms tailored to your situation.
The Process: From Tenant to Homeowner
- Check Eligibility: Use the government’s online quiz or speak to the council to confirm you qualify.
- Apply: Submit the RTB1 form to your council or housing association.
- Receive an Offer: Your landlord will value the property and send you a Section 125 notice detailing the price and discount.
- Secure a Mortgage: Approach lenders or a broker to find a Right-to-Buy mortgage that fits your budget.
- Complete the Purchase: Once financing is in place, your solicitor handles the legalities, and you’re on your way to owning your home.
Be aware that if you sell within five years, you’ll need to repay a portion of the discount, and within ten years, you must first offer the property back to your landlord.
Is It Right for You?
Owning your council home can bring freedom, such as decorating without permission slips or building equity for the future. But it’s not without responsibility. As a homeowner, you’ll cover maintenance, repairs, and possibly service charges, alongside your mortgage payments. Getting independent financial advice is a must to ensure you can afford the leap.
In 2025, the Right-to-Buy scheme remains a powerful tool for council tenants, even with reduced discounts. Paired with a specialised mortgage, it’s a chance to turn the place you’ve lived in for years into a home you truly own. Ready to explore? Contact your landlord or the government’s free Right-to-Buy Agent service (0300 123 0913) for impartial advice and next steps.
Homeownership might just be closer than you think.