Right to Buy: Why Activity Is Surging? What Tenants Need to Know

Overview: Right to Buy sales have risen sharply, with a 90% increase in 2025–26. With major reforms to the scheme moving through Parliament, many tenants are acting now to secure their discount before the rules change. If you’re considering buying your council home, understanding the timeline and the proposed reforms is essential.

What’s Driving the Surge?

1. Eligibility Rules Are Set to Tighten

Under current rules, tenants qualify after three years in social housing. The Social Housing Bill proposes increasing this to 10 years, which would exclude many tenants who currently qualify.

2. Discounts May Change

The Bill includes adjustments to market‑value discounts. For some buyers, this could reduce the financial benefit of purchasing later.

3. New Homes Will Be Protected

Newly built social homes will be exempt from Right to Buy for 35 years, reducing future opportunities.

4. Limited Housing Supply

With 1.3 million households on waiting lists, demand for secure housing is extremely high. For many tenants, Right to Buy remains one of the few affordable routes into homeownership.

Key Facts from 2025–26

• 14,275 homes sold (+90% year‑on‑year)

• £1.61bn raised in receipts (+99.6%)

• Average sale receipt: £112,900

• Replacement homes: down 7%

• Over 2 million homes sold since 1980

This sharp rise reflects both demand and urgency.

What the Reforms Mean for Tenants

If the Bill passes later this year:

• You may need 10 years as a tenant to qualify

• Discounts may be adjusted

• More homes will be excluded from the scheme

• Councils will have stronger powers to retain stock

A third reading is expected in September, meaning the window to apply under current rules is narrowing.

Should Tenants Act Now?

For tenants who already meet the three‑year requirement, applying sooner may preserve access to the current discount structure and eligibility rules. However, buying a home is a major financial decision — and mortgage rates have risen in recent months, adding pressure to affordability.

What Prospective Buyers Should Do

1. Check Eligibility Immediately

Confirm your tenancy length and whether your home is eligible under current rules.

2. Get Mortgage Advice Early

Rates have been volatile, and affordability assessments are tighter. Understanding your borrowing capacity is essential.

3. Review Long‑Term Costs

Right to Buy offers a discount, but buyers take on:

• Repairs and maintenance

• Service charges (for flats)

• Insurance

• Future mortgage rate changes

4. Understand the Timeline

If you intend to apply under current rules, starting the process before the Bill passes is crucial.

Looking Ahead

The Autumn Budget may include measures to support homeownership, but the Prime Minister has already ruled out scrapping stamp duty reforms this year. With reforms approaching and demand rising, tenants should seek advice early to avoid missing out.