Right to Buy lets eligible council tenants buy their home at a discount; Right to Acquire is a more limited equivalent for housing association tenants. Both schemes are in the middle of a significant, government-announced reform, and this guide covers the rules currently in force, the changes already confirmed, and how mortgage lenders actually treat the discount.
Figures below reflect current GOV.UK guidance and the government's 2025–2026 Right to Buy reform announcements, current to mid-2026. Rules apply to England; Scotland abolished Right to Buy in 2016 and Wales in 2019. This is general information, not financial or legal advice specific to your tenancy.
1. Right to Buy versus Right to Acquire
Your landlord can confirm which scheme, if either, applies to your specific tenancy; certain property types and circumstances are excluded from both schemes entirely, including some homes specifically designed for elderly or disabled occupants.
2. The discount structure currently in force
| Property type | Starting discount | Annual increase | Maximum |
|---|---|---|---|
| Houses | 35% after 3 years' qualifying tenancy | +1% per year | 70% or the cash cap, whichever is lower |
| Flats | 50% after 3 years | +2% per year | 70% or the cash cap, whichever is lower |
Cash discount caps were reduced in late 2024, and currently sit around £16,000 in most of England outside London, with regional variation and a higher cap in London specifically.
3. The reform already announced
Following a government consultation, a substantial reform package has been confirmed in principle, including extending the minimum qualifying tenancy period from 3 to 10 years before someone can apply at all, and restructuring the discount to start much lower, at 5% of the property's value, rising by 1% a year to a new maximum of just 15% of the property's value or the cash cap, whichever is lower, a considerable reduction from the current percentages above. The government has stated some elements will be "brought forward when Parliamentary time allows," meaning the exact timing of full implementation is not yet fixed as of mid-2026. Always check GOV.UK directly for whichever specific rule currently applies to your tenancy before making a decision based on the numbers in this guide.
Additional confirmed changes include extending a landlord's "cost floor" protection, which limits how large a discount can be if the property was recently built, repaired, or maintained at significant cost, from 15 to 30 years, and a new 35-year exemption period preventing newly-built social homes from being sold under Right to Buy at all during that window, both aimed at protecting the overall social housing stock.
4. Discount repayment and the cost floor
If you sell your home within a set period after buying it under Right to Buy, you must generally repay some or all of the discount you received, on a sliding scale that reduces the longer you've owned the property. This repayment period is currently five years, though the announced reform would extend it to ten years, and separately extend a local authority's right of first refusal (the right to buy the property back first, should you ever sell) to apply indefinitely rather than for a limited period.
5. How lenders actually treat the discount
Because you're buying at a discounted price below full market value, you have built-in equity from the day you complete, in principle a strong position when applying for a mortgage. In practice, some lenders will treat the Right to Buy discount as equivalent to a cash deposit, requiring little or no additional deposit from you; others assess the application more conservatively and still expect a separate cash contribution. A landlord cannot refuse your Right to Buy application simply because you don't yet have a mortgage agreed in principle, though they may reasonably ask for evidence of this as part of standard anti-money-laundering checks. Get quotes from more than one lender or a broker who specifically knows Right to Buy criteria, since the variation between lenders here is genuinely significant.
6. Frequently asked questions
What's the difference between Right to Buy and Right to Acquire?
Right to Buy applies to most secure tenants of council (local authority) housing. Right to Acquire is a similar but more limited scheme for tenants of housing associations, typically where the property was previously transferred from council ownership, generally offering a smaller fixed discount than Right to Buy.
Do I have to pay back my Right to Buy discount if I sell?
Yes, if you sell within a set period after buying. Currently this repayment period is five years, though an announced reform would extend it to ten years, with the amount you repay reducing the longer you've owned the property within that window.
Can I use my Right to Buy discount as my mortgage deposit?
Some lenders will treat the discount as equivalent to a deposit, effectively lending against the discounted purchase price with little or no additional cash deposit required; other lenders won't, and still require a separate cash deposit. This varies significantly by lender, so check specifically before assuming either way.
Has the Right to Buy discount changed recently?
Yes. Cash discount caps were reduced in late 2024, and the government has since announced a further overhaul, including a longer qualifying period, a lower starting discount, and extended protections for councils, though full implementation depends on further legislation and is not yet entirely in force.
Continue your research
About the author
✓ Editorially reviewed — all Poqet guides are checked for factual accuracy before publication and updated when UK rates or legislation change. Editorial Policy