Discounts and financing
Right To Buy discounts are changing
The government announced in the Autumn 2024 Budget that Right to Buy (RTB) discounts will be reduced from Thursday 21 November 2024.
- RTB applications received by 20 November 2024 will be calculated with the current RTB discount
- RTB applications received from 21 November 2024 will receive the new reduced discount level set by the government for the region
The government will carry out a consultation on wider reform to the Right to Buy scheme. We will keep you updated about future changes.
How discounts are applied
If you meet the criteria for the RTB scheme, you are entitled to a discount on the full market valuation of the property. The government adjusts this amount on 6 April each year.
The longer you have been a social housing tenant, the larger the discount you receive.
| Property type | 3 to 5 years tenancy discount | More than 5 years tenancy discount |
|---|---|---|
| House | 35% | 1% added for each extra year up to 70% or the cash maximum (whichever is lower) |
| Flat | 50% | 2% added for each extra year up to 70% or the cash maximum (whichever is lower) |
Your discount may be reduced by the ‘cost floor’ rule if we recently bought or built your home, or spent money on repairing, maintaining or improving it.
Your discount could be reduced to nil if the cost floor is more than the value. If this happens, you would pay the full market value for your home.
The period of time to work out the cost floor is either:
- 10 years before you submit your RTB application form
- 15 years if your home was built or bought by us after 2 April 2012
The costs that can be included within the cost floor calculation are set out in The Housing (Right to Buy) (Cost Floor) (England) Determination 1999.
Use the Right to Buy calculator to help you calculate the estimated costs and discount level you are eligible for.
Financing your purchase
You are responsible for how you finance buying your home. We cannot arrange this for you.
For most people, buying a home is the biggest investment they will ever make. It is a good idea to find out the costs of home ownership as early as possible before you get too far into the Right to Buy process.
Even if you do not need a mortgage, it is worth checking whether lenders are willing to give mortgages on the type of property you are buying.
Page last updated: 4 November 2024
