Right to Buy Scheme | How It Works & Eligibility Guide

Right to Buy Scheme

November 18, 2021

A Guide to Buying Your Rented Property Through the Right to Buy Scheme | Following our recent post, Right to Buy | Bluestone Launching New Right to Buy Products, we now bring you a practical, easy-to-understand overview: A Guide to Buying Your Rented Property Through the Right to Buy Scheme.

The Right to Buy scheme is a government-backed initiative that enables eligible council and housing association tenants to purchase their rented property at a significant discount. As of 2025, the scheme is expected to expand to more housing association tenants, broadening the pool of potential beneficiaries.

This guide explains how Right to Buy works, who qualifies, how to apply, and the mortgage options available, including those that may not require a traditional deposit.

What Is the Right to Buy Scheme?

The Right to Buy scheme allows long-term council tenants, and in some cases housing association tenants, to purchase their home at a discounted rate. This discount can be substantial up to £96,000 outside London and even higher within the capital.

To support this opportunity, specialist Right to Buy mortgage products are available for tenants with limited savings or who may not meet standard high-street lending criteria. Some lenders even offer no-deposit Right to Buy mortgages, where the government discount can be used as your deposit. However, while a cash deposit might not be required, you should still budget for other costs like valuation fees, legal expenses, and broker advice.

If you’re a mortgage adviser working with clients exploring this scheme, consider joining a Specialist Mortgage Network for Advisers to gain access to exclusive Right to Buy lenders and tools.

Who Is Eligible?

To qualify for Right to Buy, you typically must:

Be a secure council tenant or an eligible housing association tenant
Have rented from a public sector landlord for at least three years
Use the property as your main home
Not be under legal proceedings or declared bankrupt

For newer advisers assisting first-time buyers or council tenants, our Adviser Mortgage Network for Newly Qualified offers tools and mentorship to help them confidently guide clients through the Right to Buy process.

The Application Process – Step by Step

Check Eligibility: Confirm your status with your landlord.
Request Application Pack: Complete the RTB1 form.
Receive Offer: The council or housing association will send an offer within 8–12 weeks.
Get a Mortgage: Work with a broker or adviser to find a Right to Buy mortgage.
Complete Legal Work: Instruct a solicitor and proceed to exchange and completion.

For advisers looking to offer expert guidance in this niche, explore how joining our Mortgage Networks for Mortgage Advisers can support your compliance, access to lenders, and case packaging support.

Right to Buy Mortgage – How It Works and What to Expect

If you’re planning to purchase your council home through the Right to Buy scheme, securing the right mortgage is a critical step. While some buyers use standard residential mortgages, many lenders now offer Right to Buy mortgage products specifically tailored for this scheme.

These specialist mortgage options often come with lower deposit requirements, and in some cases, lenders may allow you to borrow against the full Right to Buy discount, meaning you won’t need to put down any deposit at all. This makes homeownership more accessible, especially for long-term tenants.

For a deeper dive into lenders that support niche and subsidised property purchases, see our Specialist Mortgage Network for Advisers guide.

Costs to Consider When Buying Through Right to Buy

Although the scheme can make buying your home more affordable, it’s important to factor in additional expenses beyond the mortgage itself. These costs can add up quickly and should be part of your overall financial planning.

Typical Costs Include:

Mortgage deposit (if required)
Lender arrangement fees
Property survey and valuation
Conveyancing/legal fees
Renovation or repair expenses
Stamp duty (if applicable)
Buildings and contents insurance

Every situation is unique, so it’s a good idea to get a full cost breakdown from your lender or mortgage adviser.

Selling a Right to Buy Property: What You Need to Know

If you sell your Right to Buy property within the first five years, you’ll need to repay some or all of the discount you received. The amount repayable depends on how soon you sell after the purchase:

Year 1: 100% of the discount
Year 2: 80%
Year 3: 60%
Year 4: 40%
Year 5: 20%

Example Scenario:

You buy your property for £150,000 with a £75,000 Right to Buy discount (50%). Three years later, the property is worth £200,000. Since you’re in Year 3, you must repay 60% of the discount’s value—60% of £100,000 = £60,000.

If you sell within 10 years of purchase, you must first offer it to your former landlord (usually the council) or another social housing provider. This is known as the Right of First Refusal. If they decline, you’re free to sell the home on the open market.

After 10 years, you can sell your property with no restrictions.

Can You Apply Jointly for a Right-to-Buy Mortgage?

Yes, the Right to Buy scheme allows for joint applications under certain conditions:

Anyone named on the tenancy agreement
A spouse or civil partner (even if not on the tenancy agreement)
Up to three family members, provided they’ve lived in the property for at least 12 months as their main residence

This flexibility makes it easier for families to combine incomes and improve mortgage affordability.

Understanding Discount Repayment Rules

Repayment of the Right to Buy discount is calculated as a percentage of the property’s market value at the time of resale, not at the time of original purchase.

For example:

Original price: £150,000
Discount received: £75,000 (50%)
Market value at sale: £200,000

If sold in Year 1, you repay 100% of the 50% discount—£100,000.
If sold in Year 4, you repay 40% of the 50% discount—£40,000.

For accurate repayment details, always consult with your local council or housing association before making decisions. “Use our Mortgage Adviser Directory to find local Right to Buy specialists.”