The Right to Buy Scheme: What You Need to Know in 2025

The Right to Buy scheme is a long-standing homebuying initiative in the UK that allows some council tenants to purchase their council home at a discount. Since its introduction in the 1980s, it has helped many people become homeowners.

However, significant changes came into effect in July 2025 under the current UK government. Here’s an updated guide to help prospective applicants understand the latest rules.

Benefits of Right to Buy:

Affordability

Owning your home can still be more affordable than renting long term — however, discounts have been significantly reduced under the 2025 reforms. The financial benefit is now more modest but still present for eligible tenants.

Investment Opportunity

Buying a property may still offer long-term financial gain, depending on market conditions. However, given the lower discounts, the potential return on investment should be assessed carefully.

Stability and Freedom

Homeownership still provides more control over your living space and long-term stability. Once you own your home, you’re no longer subject to landlord restrictions or potential evictions due to redevelopment or sale.

Key Changes Introduced in 2025

Here are the most important updates that affect new Right to Buy applicants:

Lower Discounts

Discounts are now capped between 5% and 15% of the property’s market value.
This replaces the previous discount system of up to 70% and the previous monetary caps of £102,400 (England) and £136,400 (London).
The new limits apply across England, including London.

Longer Tenancy Requirement

Applicants must now have been public sector tenants for at least 10 years (not 3 years as before).
This applies even if the tenancy was in more than one property, as long as the total duration adds up to 10 years.

One-Time Use Only

Applicants who have previously used the Right to Buy scheme are no longer eligible to apply again, except in exceptional circumstances (such as domestic abuse or safeguarding concerns).

New-Build Exemptions

All newly built council homes are now exempt from Right to Buy for 35 years.
This ensures that new social housing stock remains protected and available for future tenants.

Eligibility Criteria

To be eligible for the Right to Buy scheme in 2025, applicants must:

Be a council or public sector tenant in the UK.
Have had a public sector tenancy for at least 10 years.
Use the property as their main residence.
Not have previously benefited from Right to Buy (with rare exceptions).
Ensure the home is not exempt (e.g. new builds, certain sheltered housing, temporary accommodation, or properties scheduled for demolition).

Application Process

Request and complete the RTB1 form from your landlord.
Return the form to your landlord, who is legally required to respond within a specific time frame.
If eligible, you will receive a formal offer.
Seek professional advice to review the offer and understand your responsibilities as a homeowner.

Things to Consider

The lower discounts and longer qualifying period mean that fewer tenants will be eligible than in previous years.
Owning a home involves financial commitment – including mortgage payments, repairs, and maintenance.
You may lose access to housing benefit or other support once you become a homeowner.

Final Thoughts

The Right to Buy scheme still provides a pathway to homeownership for some council tenants, but with stricter eligibility and lower discounts in place, it’s more important than ever to seek personalised advice.

If you’re unsure whether you’re eligible — or whether this is the right move for you — get in touch with our team today for tailored guidance.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Approved by The Openwork Partnership on 17.07.2025
The Mortgage Society is a trading name of Just Mortgages Direct Limited, which is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited, which is authorised and regulated by the Financial Conduct Authority.