Buying a Council House

For many council tenants, buying their home is a significant opportunity to build equity and gain the freedom to make changes to their property. The government's Right to Buy scheme — available only in England — provides a substantial discount on the market value of the property, making purchase more accessible.

However, you must meet specific eligibility criteria, and you need to be confident you can afford the ongoing costs of home ownership — including mortgage payments, solicitor's fees, insurance, and maintenance.

Are You Eligible to Buy a Council House?

The Right to Buy scheme is available to:

• Secure tenants of a council property
• Tenants of a housing association (where the property originally transferred from council ownership)
• Current and former armed forces members (in some circumstances)

Right to Buy Eligibility Requirements

To qualify for the Right to Buy scheme, you must meet all of the following conditions:

Requirement	Details
Public sector tenancy	You must have been a public sector tenant for at least 3 years (not necessarily in the same property)
Main home	The property must be your only and principal residence
Secure tenancy	You must hold a secure tenancy agreement
Self-contained	You must not share any rooms with anyone outside your household
Not subject to possession order	There must be no outstanding court order for possession of the property
Not bankrupt	You must not be subject to a bankruptcy order or have a pending bankruptcy petition

How Much Discount Can You Get?

The Right to Buy discount is calculated based on how long you've been a public sector tenant and whether the property is a house or flat:

Property Type	Discount Rate	Starting Point	Maximum Increase Per Year
House	35%	After 3 years of public sector tenancy	+1% per additional year (up to 70%)
Flat	50%	After 3 years of public sector tenancy	+2% per additional year (up to 70%)

The maximum discount is capped — the cap varies by region and is updated periodically. In London, the maximum discount was £136,400 as of 2024; in the rest of England, the cap was £102,400. Check the current figures on the GOV.UK Right to Buy page as these figures are subject to change.

What Does Buying a Council House Cost?

Beyond the purchase price (after discount), you'll also need to budget for:

Cost	Typical Amount
Conveyancing solicitor fees	£800 – £1,500 (Right to Buy adds some complexity)
Mortgage arrangement fee	£0 – £2,000 (varies by lender)
Mortgage valuation	£150 – £500
Survey (recommended)	£400 – £1,500
Stamp Duty Land Tax	May be payable depending on the post-discount price and your circumstances
Land Registry fee	£20 – £455+ (based on post-discount purchase price)
Buildings insurance	£150 – £500+ per year (ongoing)

Can You Get a Mortgage to Buy a Council House?

Yes — most mainstream lenders will lend on Right to Buy purchases. Some even allow you to use the Right to Buy discount as your deposit, meaning you may not need to put down any additional cash. Key points:

• You'll need to pass standard affordability checks
• If you use the discount as a deposit, you'll be borrowing 100% of the post-discount purchase price
• Interest rates on higher loan-to-value (LTV) mortgages are typically higher — compare deals carefully
• Specialist mortgage brokers experienced in Right to Buy can help you find the best deal

The Right to Buy Process — Step by Step

1. Check eligibility — confirm you meet all the criteria above
2. Complete RTB1 form — submit your Right to Buy application to your landlord (council or housing association)
3. Receive RTB2 notice — your landlord has 4 weeks to confirm whether you are eligible (8 weeks if it is a housing association)
4. Receive valuation and offer — your landlord must provide a formal offer (Section 125 notice) within 8 weeks of the RTB2 (12 weeks for leasehold)
5. Decide whether to accept — you have 12 weeks to accept or reject the offer. If you believe the valuation is too high, you can request an independent valuation from the District Valuer
6. Instruct a conveyancing solicitor — appoint a regulated solicitor with Right to Buy experience
7. Arrange your mortgage — finalise your mortgage offer with your chosen lender
8. Exchange and complete — as in a standard purchase, contracts are exchanged and then completion occurs on the agreed date

What Happens If You Sell the Property?

If you sell a property bought through Right to Buy within the first 5 years, you must repay some or all of the discount. The repayment reduces on a sliding scale:

• Year 1: repay 100% of the discount
• Year 2: repay 80%
• Year 3: repay 60%
• Year 4: repay 40%
• Year 5: repay 20%
• Year 6 onwards: no repayment required

Additionally, if you sell within 10 years of purchase, you must first offer the property back to your former landlord at market value before selling on the open market.

Frequently Asked Questions

Can a family member join the Right to Buy application?

Yes. Family members who have lived with you in the property for the past 12 months — or who are named on the tenancy — can join the application. This can be helpful if only one person in the household can pass mortgage affordability checks alone.

Can my landlord refuse my Right to Buy application?

Your landlord can refuse if you do not meet the eligibility criteria, if the property is scheduled for demolition, or if it is specifically exempt (e.g. certain sheltered housing or properties with adaptation for people with disabilities). You can appeal a refusal.

Is Right to Buy available for flats?

Yes. Flats are eligible for Right to Buy and benefit from a higher starting discount (50% vs 35% for houses). However, flat buyers should be aware of potential ongoing costs such as service charges and major works contributions after purchase — these are your responsibility as the leaseholder.