If you’re renting your home from the council or a housing association, there could be an opportunity to purchase your home through the Right to Buy scheme. One of the biggest benefits of this scheme is the discount it gives you on the price of your home. But how much discount can you actually get? In this guide, we’ll explain how the Right to Buy discount works in 2025, what the maximum amount is, and what affects the total discount. We’ll also look at how you can use this discount and what options are available if you’re not eligible.
How does the Right to Buy discount work?
The Right to Buy scheme helps council and housing association tenants in England buy their homes at a lower price than the market value.
- The longer you’ve lived in your council home, the bigger your discount could be.
- The discount is based on how many years you’ve been a public sector tenant, and whether you’re buying a house or a flat.
- There’s a maximum discount limit, which changes every year.
This discount can make it easier for you to afford your home, especially if you’ve lived in it for many years.
What is the maximum Right to Buy discount in 2025?
The maximum discount amount
In 2025, the most you can get as a Right to Buy discount is:
- Up to 60% off the price of a house, with a maximum cap of £102,400 (or £136,400 if your home is in London).
- Up to 70% off the price of a flat, with the same maximum caps.
How the cap changes annually
- The discount cap goes up every April in line with inflation.
- This means it may increase slightly each year, depending on the economy.
Are discounts different in London to the rest of the UK?
Yes. Homes in London have a higher discount cap because property prices are generally more expensive. This helps more people in London afford to buy their homes through the scheme.
How is the Right to Buy discount calculated?
What situations affect the discount total? Your discount depends on a few key factors. Here’s how it’s worked out:
- How many years you’ve lived in a public sector home: You need to have been a tenant for at least 3 years to qualify. The longer you’ve lived there, the bigger the discount.
- Whether it’s a house or a flat: Flats have higher percentage discounts, but both types of properties are capped at the same amount.
- Home improvements made by the council or housing association: If your landlord has improved the property (e.g. new roof or windows), that part of the value might not count when calculating your discount.
- If you’ve had a Right to Buy discount before: If you used a discount in the past to buy another council home, it could reduce how much discount you get this time.
Right to Buy mortgage and funding options
Buying your council home through Right to Buy is exciting, but you’ll still need a way to pay for it. Most people use a mortgage to cover the cost.
Can you use the discount as a deposit?
Yes, many lenders allow you to use your Right to Buy discount as a deposit. This means you may not need to save up a large deposit to get a mortgage. But not all lenders do this, so it’s important to check or speak to a mortgage broker.
Do mortgage brokers offer Right to Buy mortgages?
Yes, many mortgage brokers work with lenders that offer Right to Buy mortgages. Brokers can help you find the right deal based on your income, credit score, and needs. They may also know lenders who accept the discount as a deposit. If you’re considering this, you can learn more on our Right to Buy mortgage page.
Affordability checks and credit impact
Before giving you a mortgage, lenders will check if you can afford the monthly payments. They will look at:
- Your income and spending
- Any debts you already have
- Your credit score and history
If you’ve missed payments in the past or have bad credit, it might be harder to get a mortgage, but some lenders may still help. A mortgage broker can guide you through this process.
What if you can’t get the Right to Buy discount?
If you apply for Right to Buy and your application is refused, or if you’re not eligible, don’t worry. There are other ways to get on the property ladder. You can also learn more about what happens when you’re refused the Right to Buy.
Shared ownership
- Shared ownership lets you buy part of a home and rent the rest.
- You start by buying a share (like 25% or 50%) and pay rent on the part you don’t own.
- Over time, you can buy more shares if you want to.
- This is a good option if you can’t afford to buy 100% of a home now.
Help to Buy
- Help to Buy used to offer a government loan to help you buy a new-build home.
- Though the original scheme has ended, some similar offers still exist in certain regions or for first-time buyers.
- You may find offers through developers or housing schemes.
Get help from a mortgage broker
- A mortgage broker can look at your finances and help you find the best options.
- They work with many banks and lenders, not just one.
- Even if you have a low income or bad credit, they may still be able to help.
- Brokers can also explain if you might be able to apply for Right to Buy again later.
Summary
In 2025, the maximum Right to Buy discount is:
- £102,400 across England
- £136,400 in London
You can get up to:
- 60% off a house
- 70% off a flat
The actual discount depends on:
- How long you’ve been a public sector tenant
- Whether it’s a house or a flat
- Property improvements and past discounts
If you’re not eligible, look into:
- Shared ownership
- Help to Buy schemes
- Speaking to a mortgage broker for advice
Need help with a Right to Buy mortgage?
A mortgage broker can guide you through the process, help you understand your options, and find the best deal for your situation.
Find a mortgage broker today and take the next step towards owning your home.