Right to Buy in 2026: How the Scheme Works and Whether It's Still Worth Applying For

What Is Right to Buy and Is It Still Running in 2026?

Yes, Right to Buy is still active in England in 2026 — but it looks quite different from the scheme that allowed millions of council tenants to buy their homes at steep discounts during the 1980s and 1990s. The maximum discount has been reduced, eligibility rules have tightened, and several councils have paused or restricted sales in their area. That said, for the right applicant, it can still represent a genuinely valuable route onto the property ladder.

Quick summary: Right to Buy lets eligible council tenants in England buy their home at a discount. Scotland, Wales, and Northern Ireland have each abolished or significantly restricted their own versions of the scheme.

Who Is Eligible to Apply?

To apply under the current Right to Buy scheme in England, you must meet all of the following criteria:

• The property must be your only or main home
• It must be a self-contained property (you have your own kitchen, bathroom, and front door)
• You must be a secure tenant of a council or housing association
• You must have been a public sector tenant for at least three years (it doesn’t need to be continuous or with the same landlord)
• You must not be subject to a bankruptcy order or have a possession order against you

Note that housing association tenants fall under a separate but similar scheme called Preserved Right to Buy or, in some cases, Right to Acquire — which offers smaller discounts. Check with your landlord to confirm which applies to you.

How Much Discount Can You Get in 2026?

This is where things have changed significantly. The government reduced the maximum discounts in 2024, and those lower caps remain in place for 2026.

• Houses: discount of 35% after three years, rising by 1% for each additional year, up to a maximum of 70%
• Flats: discount of 50% after three years, rising by 2% per year, up to a maximum of 70%
• Maximum cash discount: currently capped at £38,000 in London and £25,000 outside London

Example: You’ve rented your council house in Birmingham for 10 years. The property is valued at £160,000. You’d qualify for a 42% discount (35% + 7 years), worth £67,200 — but because the cash cap outside London is £25,000, your actual discount would be limited to £25,000, meaning you’d pay £135,000.

These caps were substantially higher before 2024 (up to £102,400 in London), so if you were waiting to apply hoping for a better deal, the window for larger discounts has now passed.

Can You Get a Mortgage for a Right to Buy Purchase?

Yes, and most high street lenders will consider Right to Buy applications. In fact, many lenders allow you to use the discount itself as your deposit, meaning you may be able to purchase with little or no cash upfront — though this varies by lender and your personal circumstances.

Key points to know:

• You’ll still need to pass affordability checks based on your income, outgoings, and credit history
• Some lenders apply a minimum deposit requirement on top of the discount, so it’s worth shopping around
• Using a mortgage broker experienced in Right to Buy can help you find lenders who are most favourable to your situation
• MoneyHelper (the government-backed financial guidance service) has a free mortgage calculator and can point you towards impartial advice

Tip: Get a mortgage agreement in principle before submitting your Right to Buy application — it confirms you can actually afford the purchase and speeds up the process.

What Are the Costs Involved?

Buying your home isn’t just about the purchase price. Budget for:

• Solicitor fees: typically £1,000–£2,000 for a straightforward purchase
• Survey: a homebuyer’s survey costs £400–£900 depending on property type and size
• Stamp Duty Land Tax (SDLT): Right to Buy purchases are not exempt. However, if the discounted price falls below £250,000 (the current zero-rate threshold for first-time buyers is higher, but standard rates apply here), you may pay little or nothing
• Buildings insurance: your responsibility as soon as you complete
• Service charges and ground rent (if buying a flat): these can be substantial and should be reviewed carefully before committing

Are There Any Restrictions After You Buy?

Yes — and this catches some buyers off guard.

• If you sell within five years, you must repay some or all of the discount on a sliding scale
• If you sell within ten years, you must first offer the property back to the council or another social landlord at the market rate before selling on the open market
• You cannot sublet the whole property in the first year after purchase without risking repayment of the discount

These restrictions are designed to prevent the scheme being used as a short-term profit vehicle rather than a route to genuine homeownership.

Is Right to Buy Still Worth It in 2026?

Possibly — but it depends entirely on your situation.

Reasons it might still make sense: - You’re paying rent that’s close to or higher than a mortgage repayment would be - You plan to stay in the property long term - The discounted price is genuinely below local market value, even with the reduced caps - You have limited other routes onto the property ladder

Reasons to think carefully: - The discount caps are now much lower than they were, reducing the financial advantage - Homeownership brings costs that tenants don’t face (repairs, maintenance, service charges) - If the property is a flat, you’ll be subject to potentially high and unpredictable service charges - Some councils are actively challenging sales or have applied for exemptions

Worth checking: The government’s Right to Buy website has an eligibility checker and a step-by-step guide to the application process.

If you’re unsure, consider speaking to an independent financial adviser (IFA) regulated by the Financial Conduct Authority (FCA). You can find one at unbiased.co.uk or through the Personal Finance Society.

This article is for informational purposes only and does not constitute regulated financial advice. Always seek independent advice from a qualified, FCA-authorised adviser before making any financial decisions.