What is a Right to Buy discount?

The Right to Buy scheme is a policy that gives secure tenants of councils and some housing associations the legal right to buy, at a large discount, the council houses in which they live. This means you will purchase your home at a price much lower than the full market value.

The scheme was first introduced in 1980 and has helped millions of council tenants purchase their rented properties from the local authority, even those with poor credit. Right to Buy provides an opportunity for those in such circumstances to step onto the property ladder and has proven to be a popular scheme since it came into effect.

Changes in the Right to Buy discount scheme following the Autumn Budget 2024

The maximum cash discount is currently £102,400 across England, except in London Boroughs, where it is £136,400. However, following the government’s announcement in the recent Budget on 30th October 2024, the following changes will apply from 21st November 2024:

Maximum cash discounts will be reduced to £16,000 - £38,000. The level of discount you will be eligible for will depend on where you live. As you can see from the figures above, this is a dramatic decrease in the discounted amounts.

Act fast

If you are considering purchasing your home under the Right to Buy scheme, please note that applications received by social landlords before 21st November 2024 from eligible tenants will still be eligible for the current discounts. Any applications made after this date will fall under the new discount rules. Therefore, if you are considering purchasing under the Right to Buy scheme, you need to act fast. Please contact your landlord to see whether you are eligible.

Are you considering buying your home?

Deciding whether to purchase your home is a big decision. Your home can be an asset for you and your family in the future, and home ownership can provide freedom, such as being able to make changes to your home without requiring permission from your landlord. However, owning your own home also comes with a lot of responsibilities, so you need to ensure this is the correct choice for you and your family.

If you would like to speak to someone regarding the above, we have a number of Property Lawyers at BHP Law who would be happy to assist. Please feel free to give us a call on 01325 466794.