Right to Buy Calculator

Right to Buy allows eligible council tenants in England to buy their home at a discount. The discount depends on the property type and length of tenancy. For houses, the discount starts at 35% after 3 years of tenancy and increases by 1% per additional year up to a maximum of 70%. For flats, the discount starts at 50% and increases by 2% per year up to 70%.

Maximum cash discount caps were reformed from 21 November 2024 (SI 2024/1073): the cap is now a regional figure of £16,000–£38,000 (e.g. £16,000 across most of London, up to £38,000 in parts of the South East), down from the former £136,400 (London) / £102,400 (rest of England). The discount is the lower of this regional cap or 70% of the property value. If you sell the property within 5 years, you must repay some or all of the discount on a sliding scale. Former council tenants can also use the Preserved Right to Buy if their home was transferred to a housing association.

This calculator shows the discount you are entitled to based on your tenancy length and property type. Enter the market value of your home, your tenancy start date and location to see the purchase price after discount, plus the repayment amount if you sell within 5 years.

Right to Buy — England 2026. Council tenants can buy home at significant discount. Eligible: secure tenant (council, housing association in some cases), 3+ years tenancy minimum. Discount: 35% for houses, 50% for flats — increases with each year over 5 years. Maximum cash discount England 2026: £16,000–£38,000 depending on region (most of London £16,000) — caps cut sharply from 21 November 2024. Wales and Scotland: Right to Buy abolished (Wales 2019; Scotland 2016). NI: similar 'House Sales Scheme' available.

Calculating Right to Buy discount. Houses: 35% discount for 3-5 years tenancy, +1% for each extra year up to maximum 70%. Flats: 50% discount for 3-5 years, +2% per year up to 70%. Sample: 15 years tenancy in 2-bed council house — 35% + 10% = 45% discount. £200,000 market value × 45% = £90,000 — but the regional cash cap applies, so with a £38,000 cap the discount is £38,000 and you pay £162,000. Cap: cannot exceed the regional cash cap (£16,000–£38,000) regardless of percentage.

Right to Buy mortgages. Most UK lenders offer Right to Buy mortgages (special products acknowledging the discount as 'gifted equity'). LTV calculated on PURCHASE PRICE not market value. Sample £162k purchase of £200k property: 25% deposit (£40,500) gives 75% LTV — but the loan covers only about 61% of market value. Best lenders 2026: Halifax, Barclays, Nationwide — competitive rates from 4.5%. Some lenders refuse Right to Buy mortgages — use brokers familiar with scheme.

Selling Right to Buy property — early repayment. Sell within 5 years: repay portion of discount. Year 1: 100% of discount. Year 2: 80%. Year 3: 60%. Year 4: 40%. Year 5: 20%. After 5 years: keep full discount, no repayment. Sample £80k discount, sell after 2 years: repay £64k to council. After 6 years: zero repayment. Many sell at 5-year anniversary for maximum profit. Resale to family member during repayment period: still triggers repayment.

Pros and cons of Right to Buy. PROS: massive discount (often £50k-£100k equity instantly); ownership benefits (alter property, pass to family); rent payments become mortgage building equity; usual property capital growth applies. CONS: maintenance costs (repairs become your responsibility); leasehold flats — service charges and ground rent; council tax higher than council rent often; mortgage interest payments may exceed previous rent; service charges on leasehold buildings can be huge (£3,000-£8,000/year typical large blocks). Calculate carefully before signing.