Right to Buy allows many council tenants to purchase their homes at a discounted price. Outside of London, the maximum discount available to council tenants in England is £82,800.
In London boroughs, the discount can be as high as £110,500.
Discounts increase in line with inflation (Consumer Price Index).
There are three drivers that determine the discount sum available to council tenants. These drivers are:
- Length of Residency as a Council Tenant
- Type of Property
- Valuation of the Property
Length of Residency as a Council Tenant
If multiple council tenants for the same property are hoping to purchase it, the discount is based on whichever person has been a public sector tenant for the longest amount of time.
To qualify for Right to Buy, you must have been a council tenant for a minimum of 3 years.
Type of Property
You can acquire a larger Right to Buy discount when purchasing a flat instead of a house.
If you are purchasing a flat, after 3 years a 50% discount may apply. The same discount rate also applies up to 5 years of residency.
After 5 years, for each subsequent year of residency a further 2% discount applies. A maximum discount of 70% is available for council flat purchases under Right to Buy.
Whereas, for house purchases, a 35% discount is available after 3 years of council tenancy.
This discount rate also applies up to 5 years of residency.
After 5 years, for each subsequent year of residency a further 1% discount applies.
A maximum discount of 70% is available for council house purchases under Right to Buy.
Valuation of the Property
The discount available to council tenants may be less if the landlord has spent money on building or maintaining the property.
You will not have access to any Right to Buy discount if your landlord has spent more money on the property than the valuation of the property by the council.