Can I Buy My Council House?

Owning a home is a dream for many, and if you are a council tenant, you might be wondering, can I buy my council house? The short answer is yes! In England, the Right to Buy scheme provides an opportunity to purchase your council house at a discounted price. However, there are various eligibility criteria, recent rule changes, and financial considerations that potential buyers should be aware of before making this decision.

In this article, we will cover everything you need to know about buying a council house, including eligibility, the application process, new rules introduced in 2025 and financial considerations you’ll want to take into account.

How do I buy my council house?

The most straightforward way to buy your council house is through the Right to Buy scheme, as it allows council tenants in England to buy their homes at a discounted rate. The scheme aims to help people transition from renting to homeownership while reducing the government’s social housing responsibilities. In recent years, there have been changes to the scheme due to concerns over the declining rate of affordable housing. This means while Right to Buy remains available in England, it has been abolished in Scotland and Wales.

Am I eligible for Right to Buy?

Not all council tenants have the right to buy their council house under the scheme. To qualify, you must meet the following conditions:

1. You must be a secure tenant, meaning you have a long-term tenancy with the council.
2. As of February 2025, you need to have been a tenant for at least 10 years (previously 3 years).
3. Your home must have been owned by a public sector landlord (such as a council or housing association) for the required tenancy period.
4. The property must be your main or only home.
5. You cannot apply if you are facing legal proceedings such as bankruptcy.

If you live in a flat, the process may differ as most flats are leasehold properties. This means that while you buy the property, the council or housing association remains the freeholder, and you may have to pay service charges.

How much of a discount can I get?

The discount you receive under Right to Buy depends on how long you have been a tenant and whether you are purchasing a house or a flat:

• Houses: The discount starts at 35% after 10 years of tenancy and increases by 1% for each additional year, up to a maximum of 70% or £87,200 in England (£102,400 in London).
• Flats: The discount starts at 50% after 10 years and increases by 2% per additional year, up to the same 70% or monetary cap.

The discount is capped, meaning that even if your calculated percentage exceeds the set limit, you won’t receive more than the stated maximum.

What changes are being made to Right to Buy in 2025?

Due to concerns about the lack of affordable housing, the UK government has introduced new rules in 2025 to modify the Right to Buy scheme. The key changes include:

• Increase in tenancy requirement: The period required before applying has been raised from 3 years to 10 years.
• Stricter resale rules: If you sell your home within 10 years, you must offer it back to the council or another social landlord before selling it on the open market.
• New-build exclusions: Newly built council homes may be excluded from Right to Buy to help preserve the social housing supply.
• Potential discount reductions: While not yet confirmed, the government has hinted at a possible reduction in discounts to prevent rapid sales of council properties.

How can I apply for Right to Buy?

If you meet the eligibility criteria and wish to purchase your council home, follow these steps:

1. Confirm eligibility: Verify with your local council or housing association that you qualify for Right to Buy.
2. Obtain an RTB1 form: You can download this from the GOV.UK website or request it from your landlord.
3. Submit the application: Fill in the RTB1 form and submit it to your landlord.
4. Receive a response: Your landlord must reply within four weeks (or eight weeks if they have been your landlord for less than three years). They will confirm your eligibility or explain why you are not eligible.
5. Get an offer notice: If eligible, you will receive an offer notice (S125) detailing:

• The property’s market value
• The discount applied
• The final purchase price
• Structural details of the property

6. Decide whether to buy: You have 12 weeks to accept or decline the offer. You may negotiate or dispute the valuation if you disagree with the price.
7. Arrange financing: If you proceed, arrange a mortgage or funds for the purchase.
8. Complete the purchase: Once legal paperwork is finalised, ownership transfers to you.

How can I finance my council house purchase?

Buying your council home is no small decision, and it’s important to make sure you have the funds in place. Here are some of the options to consider:

• Buy with cash: If you have savings or an inheritance, you can buy the property outright.
• Get a Right to Buy mortgage: Many banks and lenders offer specific mortgages for Right to Buy purchases.
• Receive help from family: Some buyers use a guarantor or family member’s financial help to secure a mortgage.
• Consider shared ownership: Some schemes allow you to buy a percentage of the property and pay rent on the remaining portion.

Before proceeding, consult a mortgage advisor to understand your options and financial commitments.

What are the pros and cons of buying my council house?

Pros

• Large discounts: The discount makes it cheaper than buying a home on the open market. 
• Security of homeownership: You no longer have to worry about rent increases or eviction. 
• Potential for investment: The property may increase in value over time. 
• Freedom to make changes: As an owner, you can renovate or extend without landlord restrictions.

Cons

• Ongoing costs: Homeownership includes maintenance, repairs, insurance, and service charges (for flats). 
• Resale restrictions: If you sell within 10 years, you may need to offer it back to the council. 
• Impact on benefits: If you claim housing benefits, you may no longer receive support once you own a property. 
• Risk of repossession: If you cannot keep up with mortgage payments, you risk losing your home.

The Right to Buy scheme can be a fantastic opportunity for council tenants to become homeowners, but it comes with responsibilities and long-term financial commitments. Before making a decision, it is crucial to understand the costs, seek financial advice, and consider future responsibilities as a homeowner.

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