Right to Buy Your Council House in 2026: Discount, Rules, and the New Restrictions

Right to Buy turned 45 years old in 2025 and looks nothing like the scheme Margaret Thatcher launched. The November 2024 reforms cut discount caps to a fraction of their previous level and extended the resale clawback period. For a council tenant in 2026, the question “is it still worth it?” needs different maths than it did even three years ago.

Who qualifies in 2026

• You are a secure tenant of a council, housing association or other public-sector landlord in England.
• You have been a public-sector tenant for at least 3 years (does not have to be continuous, and time with different councils counts).
• The property is your only or main home and is self-contained.
• You are not subject to a possession order or bankruptcy.

Right to Acquire is a separate, smaller-discount scheme for some housing association tenants who do not qualify for full Right to Buy.

The November 2024 discount cap cut

Until November 2024 the maximum Right to Buy discount in London was £102,400 and £77,000 elsewhere. The Autumn Budget 2024 cut the caps to:

• London: £16,000 maximum discount.
• South East, South West, East of England: £22,500 maximum.
• North East, North West, Yorkshire, East and West Midlands: £30,000 to £38,000 maximum.

The percentage discounts (35% for houses after 3 years, 50% for flats, rising by 1% per year for houses and 2% per year for flats up to a maximum) are unchanged. The cap simply bites earlier on most properties.

Worked example: a London tenant

Imagine a 2-bedroom flat in inner London valued at £350,000. Sarah has been a tenant for 18 years.

• Percentage discount on a flat after 3 years: 50%.
• Each additional year over 3: +2%.
• 15 extra years × 2% = 30% additional. Max percentage discount: 70%.
• 70% of £350,000 = £245,000 in theoretical discount.
• Cap applied: £16,000 in London.
• Actual purchase price: £350,000 − £16,000 = £334,000.

Before November 2024, Sarah would have got the full £102,400 cap. After November 2024 her discount is £16,000. The change wipes £86,000 off the value.

The 10-year resale clawback

Previously the clawback period was 5 years. From November 2024 it doubled to 10 years. If you sell within:

• Year 1: repay 100% of the discount.
• Year 2: repay 90%.
• Year 3: repay 80%.
• And so on, dropping 10% per year, until year 11 when there is no clawback.

The repayment is on the discount applied to today's market value, not the original discount amount. If the property has appreciated significantly, the clawback can be larger than the original discount in cash terms.

The first-refusal rule

For 10 years after exercising Right to Buy, you must offer the property back to your former landlord first if you decide to sell. The landlord has 8 weeks to accept at the open-market value (determined by an independent valuer). If they decline, you can sell on the open market.

Mortgages for Right to Buy

Most major lenders offer Right to Buy mortgages. Distinctive features:

• The discount is treated as the deposit. You can borrow 100% of the discounted purchase price.
• Affordability testing is based on your current income, including any housing benefit.
• Some lenders limit Right to Buy mortgages to ex-local-authority houses, not flats, especially flats in tower blocks.
• If you own less than 100% (e.g. there is a co-owner who is not on the tenancy), you can still proceed but the mortgage paperwork is more complex.

What changed for the calculation in 2026

The question of whether Right to Buy makes financial sense for any individual tenant turns on three things:

• The new discount cap in your region.
• The current open-market value of the property.
• Your mortgage affordability at full purchase price.

For most London tenants, the new £16,000 cap means Right to Buy is no longer a transformative deal, but for some northern tenants where the cap is £30,000+ on a £130,000 property, the discount is still substantial.

The application process

1. Get the RTB1 form from gov.uk. Send it to your landlord (the council or housing association).
2. Landlord responds within 4 weeks (8 weeks if they need to ask for additional information) with the RTB2 form, confirming whether you qualify.
3. If you qualify, landlord sends Section 125 notice within 8 to 12 weeks. This contains the offered price and discount.
4. You have 12 weeks to accept the offer or ask for a redetermination of the value.
5. Mortgage application, conveyancing, completion follow as normal.

The whole process takes 4 to 8 months on average.

When it still works in 2026

• You plan to stay in the property at least 10 years.
• The mortgage payment (or shared with a partner) is comfortably affordable.
• You have at least £5,000 to cover legal fees, mortgage arrangement fee and survey on top of the deposit.
• The property is in good structural condition; you will be responsible for all repairs and external maintenance once you own.

When to stay a tenant

• You might need to move within 10 years (job relocation, family changes).
• The discount is small relative to the open market price (London under the new caps).
• The flat is in a leasehold block with major works or cladding remediation pending.
• You have less than £3,000 saved for fees and immediate post-completion costs.