If you’re a council tenant and have started looking into ways to buy your home, you may have come across Right to Buy. It’s a scheme that can allow eligible tenants to buy your council home at a discount, which may make home ownership feel more achievable.
But it’s important to understand how the scheme works before assuming it’s the right route for you. Right to Buy can reduce the price you pay, but it doesn’t automatically mean you’ll qualify, get the maximum discount or be approved for a mortgage.
This guide focuses on Right to Buy in England. Different rules may apply in Scotland, Wales and Northern Ireland.
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So what is Right to Buy?
The simple answer is that it’s a government scheme that may let eligible council tenants buy the home they already live in for less than its full market value.
The discount is based on your circumstances and the rules that apply when you apply. It isn’t paid to you as cash. Instead, it reduces the purchase price of the property.
For example, if your home is valued at £180,000 and your confirmed discount is £26,000, the price you pay would be £154,000.
That lower price can make buying your council home more realistic, especially if you’ve lived there for a long time and want to stay in the property.
Who is Right to Buy for?
Right to Buy is generally aimed at eligible council tenants.
Some housing association tenants may also have something called Preserved Right to Buy if their home was transferred from the council to another landlord while they were living there.
At a high level, your eligibility can depend on things like:
- Whether you’re a secure tenant
- How long you’ve been a public sector tenant
- Whether the property is your main home
- The type of property you live in
- Whether any exclusions apply
This article isn’t a full eligibility guide, and your landlord or council should confirm whether you qualify. If you’re unsure, that’s usually the best first place to check.
How does the Right-to-Buy discount work?
The Right-to-Buy discount reduces the price you pay for your home. It can depend on several factors, including the type of property, where it is, how much it’s worth and how long you’ve been a qualifying tenant.
Under the April 2026 government guidelines, maximum cash discounts are currently between £16,000 and £38,000, depending on location.
Older, higher maximum discounts may apply to some eligible applications received before 21 November 2024.
There are also rules that can reduce the discount in some cases. For example, if your landlord has spent money building, buying, repairing or improving the property, the “cost floor” rule may affect the discount.
Your landlord will confirm the property valuation, the discount and the price you’d need to pay.
How does buying your council home work?
The exact process is handled through your landlord, but the broad steps usually look like this:
- Check whether you may be eligible
- Apply through your landlord or council
- Wait for the landlord’s response
- Receive the offer notice, valuation and confirmed discount
- Review the price and terms
- Arrange a mortgage if needed
- Get legal advice and complete the purchase
You don’t have to continue just because you’ve applied. If the numbers don’t work or you decide it isn’t right for you, you can usually withdraw from the process.
Do you need a mortgage for Right to Buy?
Many people need a mortgage unless they can buy the home outright with cash.
People often use the phrase Right to Buy mortgage, but this usually means a normal mortgage used to buy a property through the Right to Buy scheme. It isn’t a separate government mortgage product.
That means the lender will still assess your application. They’ll usually look at your income, spending, credit history, debts, age, mortgage term and the property itself.
This is where Right to Buy mortgages can be slightly different from a standard home purchase. The property may already have a confirmed discount, and some lenders may treat that discount in a helpful way. But lender criteria can vary, so it’s worth checking your options before assuming every lender will view the application the same way.
Can the Right-to-Buy discount help with the deposit?
In some cases, yes. Some lenders may accept the discount as the deposit, which could mean you don’t need a separate cash deposit.
But this isn’t guaranteed.
It can depend on the lender, your affordability, your credit history, the property type and the size of the discount. Some lenders may still want you to contribute cash, or they may have specific rules around how the discount is treated.
This is one reason Right-to-Buy mortgage advice can be useful before you get too far into the process. A broker can help you understand which lenders may be comfortable with your situation and whether the discount could work as the deposit.
Example of how Right to Buy could work
Here’s a simple example:
- Estimated property value: £180,000
- Example Right-to-Buy discount: £26,000
- Discounted purchase price: £154,000
- Mortgage needed: £154,000, if no separate cash deposit is used
In this example, the discount reduces the amount the buyer needs to borrow. If a lender accepts the discount as the deposit, the buyer may not need to put in a separate cash deposit.
But this is only an example. Your actual figures will depend on your property value, confirmed discount, lender criteria and personal circumstances.
You can use our Right-to-Buy mortgage calculator to get a rough idea of how the discount could affect your purchase price, mortgage amount and possible deposit position.
What could affect your mortgage options?
Even with a discount, lenders still need to decide whether the mortgage is affordable and suitable.
They may look at:
- Your income
- Your employment type
- Your regular spending
- Loans, credit cards and other commitments
- Your credit history
- Your age and mortgage term
- The property type and condition
- Whether the discount can be treated as deposit
The property itself can also matter. Some lenders may be more cautious with certain flats, high-rise blocks, non-standard construction or properties with major repair concerns.
If you’ve had credit issues such as missed payments or defaults, that doesn’t always mean buying is impossible, but it may affect which lenders are available. In that situation, it may help to look at adverse credit mortgage options before applying.
If you’re self-employed, lenders may also look closely at how your income is evidenced. You may want to understand self-employed mortgage advice before relying on your income figures.
What other costs should you think about?
Right to Buy isn’t only about the purchase price and mortgage payment. Once you own the home, you’ll usually be responsible for more costs than you were as a tenant.
These can include:
- Legal fees
- Survey costs
- Mortgage fees
- Buildings insurance
- Repairs and maintenance
- Service charges if you’re buying a flat or leasehold house
If you’re buying a flat, you’ll usually become a leaseholder. That means the landlord may still be responsible for the wider building, but you may need to pay service charges and contribute towards major works.
It’s also worth checking the rules if you think you might sell later. Selling within the first few years can affect whether some of the discount has to be repaid.
When should you speak to a mortgage broker?
You may want to speak to a mortgage broker once you have an idea of the property value, discount and likely purchase price.
It can also help to speak to someone earlier if you’re unsure whether the numbers are realistic, whether your income is likely to fit, or whether the discount could be accepted as the deposit.
A broker can help explain lender options, affordability and what may be possible based on your situation.
If you’re thinking about buying your council home and want to understand the mortgage side, Monday Mortgages can help you check your options. You can also use our mortgage calculators to estimate your mortgage costs before deciding what to do next.
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FAQs
What is Right to Buy?
Right to Buy is a scheme that may allow eligible council tenants to buy the home they live in at a discount. The discount reduces the purchase price rather than being paid to you as cash.
Who can use Right to Buy?
Right to Buy is generally for eligible council tenants, although some housing association tenants may have Preserved Right to Buy. Your landlord or council should confirm whether you and your property qualify.
How much discount can you get with Right to Buy?
The discount depends on factors such as the property, location, value and your qualifying tenancy history. Under the April 2026 government guide, maximum cash discounts are currently between £16,000 and £38,000, depending on location.
Do you need a deposit for Right to Buy?
Not always. Some lenders may accept the Right-to-Buy discount as the deposit, but this depends on the lender and your circumstances. A separate cash deposit may still be needed in some cases.
Can you get a mortgage for Right to Buy?
Yes, many people use a mortgage to buy their home through Right to Buy. A Right to Buy mortgage is still assessed by the lender, so affordability, credit history and property type still matter.
Is Right to Buy the same as getting a mortgage approved?
No. Right to Buy relates to whether you can buy your home through the scheme. Mortgage approval is a separate lender decision based on your finances, the property and the lender’s criteria.
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