Right to Buy Calculator UK 2025 — Your Council House Discount Explained
Right to Buy gives eligible council tenants the right to purchase their home at a discounted price. In England, the maximum discount is £102,400 (£136,900 in London). This calculator works out your discount based on your years as a public sector tenant and your property type (house or flat).
Maximum discount 2025: £102,400 (England outside London), £136,900 (London). Houses: 35% after 3 years, rising 1% per year to maximum 70%. Flats: 50% after 3 years, rising 2% per year to maximum 70%. You must have been a public sector tenant for 3+ years (need not be continuous).
Right to Buy Discount Rates 2025
| Property type | Minimum (3 yrs) | Rate per year | Maximum |
|---|---|---|---|
| House | 35% | +1% per year after year 3 | 70% (at 38+ years) |
| Flat / maisonette | 50% | +2% per year after year 3 | 70% (at 13+ years) |
Who Is Eligible for Right to Buy?
To exercise Right to Buy in England, you must: (1) be a secure council tenant; (2) have been a public sector tenant for at least 3 years (cumulative, with any public sector landlord — housing association, armed forces, NHS trust etc.); (3) the property must be your only or main home; (4) it must be self-contained; and (5) you must not have any outstanding debt orders or bankruptcy. Joint applications are allowed — all joint tenants must agree to the purchase, and up to 3 family members who are not tenants can also apply if they have lived there for the past 12 months.
The Application Process
- Submit form RTB1 to your landlord. Download from gov.uk or get it from your council.
- Landlord responds within 4 weeks (8 weeks if they have been your landlord for less than 3 years) — either accepting or refusing your application.
- Landlord sends Section 125 notice — an offer notice setting out the purchase price, discount, and property description. You have 12 weeks to accept or reject.
- Arrange a mortgage — many high street lenders accept Right to Buy applications. The discounted purchase price is usually accepted as your deposit, meaning you may not need additional savings.
- Appoint a solicitor and complete the conveyancing process as with any property purchase.
Discount Repayment — The 5-Year Rule
If you sell your Right to Buy property within 5 years of purchase, you must repay a proportion of the discount received. The repayment is: 100% in year 1, 80% in year 2, 60% in year 3, 40% in year 4, and 20% in year 5. After 5 years, no repayment is required. The repayment amount is calculated on the proportion of the original discount, revalued to the sale price — so if property prices have risen, the repayment could exceed the original cash discount.
Additionally, you must offer your landlord (the council) first right of refusal to buy back the property if you sell within 10 years, at the current market value.
Frequently Asked Questions
Yes — most major lenders accept Right to Buy applications. The key benefit is that your discount is treated as a deposit, so you may be able to get a 100% mortgage on the discounted price (effectively borrowing only the discounted purchase price). You will still need to afford the monthly mortgage payments and pass the lender's affordability assessment.
Your landlord can only refuse Right to Buy on specific grounds — for example, the property is due for demolition, it is specially adapted housing, or you do not qualify. If refused, they must give written reasons. You can appeal to the First-tier Tribunal (Property Chamber) if you believe the refusal is incorrect. Many refusals are successfully challenged.
Most housing association tenants cannot use Right to Buy — that scheme is for council tenants. However, housing association tenants may be eligible for the similar Right to Acquire scheme, which offers smaller discounts (£9,000–£16,000 depending on location). Some housing associations also voluntarily offer a preserved Right to Buy to former council tenants whose homes were transferred to them.