The UK government has announced that major reforms to the Right to Buy scheme will be implemented sooner than anticipated, aiming to safeguard social housing stock. The changes, confirmed on April 28, will significantly alter eligibility requirements and discount structures for council tenants hoping to purchase their homes.
Key Changes to Right to Buy
Under the new rules, tenants must have been in public sector housing for at least 10 years—up from the current three years—before they can apply to buy their home from the council. This period does not need to be continuous. The adjustment is intended to help councils protect and replenish their diminishing housing stock while still offering a pathway to homeownership for long-term tenants.
Discount Reductions
The current discount system allows tenants with three to five years of tenure to receive up to 35% off the property value, increasing by 1% per extra year up to a maximum of 70% (or a regional cash cap, whichever is lower). For flats, the discount starts at 50% and rises by 2% per year after five years. Under the new reforms, the discount will start at 5% of the property’s value and increase by 1% annually, capped at 15% or the regional cash limit—whichever is lower. Regional caps currently range from £16,000 in London to £38,000 in parts of the South East.
Exemption for New Builds
Additionally, newly built social homes will be exempt from Right to Buy for 35 years after construction. This measure aims to prevent the immediate loss of new affordable housing stock.
Background and Reactions
The Right to Buy scheme underwent substantial changes in 2024, when discounts were drastically reduced. A surge in applications ahead of those changes led to a 19-year high in uptake, according to Housing Today. Gavin Smart, CEO of the Chartered Institute of Housing, welcomed the government’s focus on reform, stating: “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.” He also noted the importance of further work on fraud prevention and the scheme’s impact in rural areas to ensure fairness and sustainability.
