The changes will affect social housing tenants hoping to buy their home (Image: GETTY)
The Right to Buy scheme is set to undergo significant changes far sooner than tenants had anticipated.
The Government confirmed today, April 28, that further reforms to the scheme will be ‘brought forward’ in order to ‘safeguard social housing’.
Right to Buy enables council tenants to purchase their home at a reduced price, provided they meet specific eligibility criteria, such as having been a public sector tenant for a minimum of three years. The highest possible discount available to buyers is 70% of their property’s value in certain areas, potentially amounting to tens of thousands of pounds.
- Increasing the minimum eligibility period
- Amending discount rules
- An exemption on newly built social homes
Read more: The 10 best locations to buy a house now before mortage prices rocket
Read more: The UK city with new £230m neighbourhood – where no one can buy a home
Once the updated regulations come into effect, tenants will be required to have lived in public sector housing for at least 10 years, rather than three, before they can apply to purchase their home from the council. This does not have to be 10 consecutive years.
The amendment is intended to assist councils in better protecting and replenishing their dwindling housing stock, while maintaining a pathway to home ownership for long-standing tenants.
The maximum discount currently available is either 70% of the property value or the maximum discount for your region, whichever is lower. This cash cap ranges from £16,000 in London to £38,000 in certain parts of the South East.
If you’re looking to purchase your council house and have been a public sector tenant for between three and five years, you could be entitled to a discount of up to 35%. Beyond five years, this discount rises by 1% for each additional year spent as a public sector tenant, up to the maximum permitted discount.
For those residing in public sector flats, the discount begins at 50% and increases by 2% for every year beyond five years as a public sector tenant, up until the maximum discount threshold is reached.
Under the new discount regulations, the Right to Buy discount will commence at 5% of the property’s value, rising by 1% annually up to a maximum discount of 15% or the cash cap, whichever is lower.
Additionally, the government will introduce an exemption for newly built homes, which will prevent new social housing from being sold under the Right to Buy scheme for 35 years following their construction.
The Right to Buy scheme underwent significant reforms in 2024, with discounts being substantially reduced to their current levels. A record number of applicants rushed to apply for the scheme ahead of the rule changes taking effect, resulting in a 19-year high, according to Housing Today.
Gavin Smart, CEO of the Chartered Institute of Housing, said: “CIH welcomes the government’s continued focus on reforming Right to Buy and the clear recognition that change is needed to better protect and rebuild our social housing. The measures confirmed today are a positive step towards addressing the long-standing imbalance between homes sold and those replaced.
“We also welcome the further work on fraud prevention and the scheme’s impact in rural areas, both of which are crucial to ensuring Right to Buy operates fairly and sustainably.”