Right to Buy surge set to increase private rental demand
The number of council homes sold under the Right to Buy scheme in England nearly doubled in 2025-26, while replacement social housing fell, raising concerns about increased pressure on the private rented sector.
Some 14,275 council homes were sold under the Right to Buy scheme in England during 2025-26, an increase of 90% compared to the previous year, according to figures reported by local authorities. Despite the significant rise in sales, only 3,452 replacement homes were funded through Right to Buy receipts, representing a 7% decrease from 2024-25.
The total receipts from eligible Right to Buy sales reached £1.61 billion in 2025-26, almost doubling the previous year’s £808 million. The average receipt per dwelling was £112,900, a 5% increase compared to 2024-25. Since the scheme began in 1980, over two million council homes have been sold to tenants.
Details of Right to Buy sales and replacement housing
The surge in Right to Buy sales coincides with a drop in the number of replacement homes built using the receipts from these sales. This imbalance raises concerns about the shrinking stock of social housing available for rent. The figures indicate that while local authorities are generating more income from sales, fewer new social homes are being created to offset the loss.
The government is currently considering reforms to the Right to Buy scheme as part of the Social Housing Bill progressing through Parliament. Proposed changes include increasing the qualifying period for tenants from three to ten years, protecting newly built social homes from the scheme for 35 years, excluding ‘hard-to-replace’ rural homes, and adjusting discounts on market value.
The third reading of the Bill is expected soon, with the possibility of it becoming law by the end of the year. These reforms aim to slow the rate of council home sales and preserve social housing stock.
Context and implications for the private rented sector
The rapid increase in Right to Buy sales, coupled with fewer replacement homes, is likely to intensify demand for private rented accommodation. As social housing stock diminishes, tenants unable to purchase their homes or excluded by the new qualifying criteria will turn to the private rental market. This shift could lead to increased competition for rental properties and upward pressure on rents.
For landlords and letting agents, this trend may present opportunities but also challenges. Higher demand could improve occupancy rates and reduce void periods, yet it may also invite greater scrutiny from policymakers and tenants regarding rent levels and property standards.
The proposed reforms to the Right to Buy scheme may cause a short-term rush among eligible tenants to buy their homes before the changes take effect. However, with mortgage rates rising amid economic uncertainty, some potential buyers may find it harder to secure financing, further boosting the pool of renters.
Practical considerations for landlords and agents
Landlords should prepare for increased interest in private rental properties, especially in areas where Right to Buy sales have been high. Maintaining high standards of property condition and compliance will be essential to attract and retain tenants in a potentially more competitive market.
Letting agents might see a rise in demand for rental properties and should ensure their processes for tenant referencing, rent collection, and compliance with safety and licensing regulations are robust. Awareness of local housing policies and any new licensing schemes introduced in response to changing housing dynamics will be important.
Both landlords and agents should monitor the progress of the Social Housing Bill and any related government announcements, as further changes to the Right to Buy scheme could affect long-term market conditions.
Uncertainties and what to watch
The full impact of the Right to Buy surge on the private rented sector will depend on how quickly replacement social housing can be delivered and how the proposed reforms to the scheme are implemented. The government’s ability to enforce protections on new social homes and the exact details of discount adjustments remain to be clarified.
Economic factors such as mortgage interest rates and broader housing market conditions will also influence tenants’ ability to buy homes and their subsequent demand for rental accommodation. Landlords and agents should stay informed about these developments and review their strategies accordingly.
What landlords should consider now
- Review property compliance and safety documentation to ensure readiness for increased tenant interest.
- Stay updated on local authority licensing schemes that may expand in response to housing pressures.
- Prepare for higher demand by considering rent reviews and maintenance schedules to keep properties attractive.
- Monitor government updates on the Social Housing Bill and Right to Buy reforms to anticipate market changes.
- Consider financial planning for potential shifts in tenant profiles and rental income stability.
Supporting landlords through changing housing policies
The Landlord Association (TLA) offers membership that provides access to compliance resources, practical information, and document support tailored to evolving rental sector regulations. TLA’s new property management and compliance platform, ORBIT, is currently available in BETA testing and is designed to help landlords and letting agents organise property records, monitor regulatory developments, and maintain evidence of compliance activities.
ORBIT’s features include tools for recording repairs, inspections, and communications, which are particularly useful as landlords navigate the implications of Right to Buy reforms and increased rental demand. Exploring TLA membership and ORBIT BETA access can support landlords in managing their portfolios effectively amid these changes.
For more information, landlords can review TLA’s compliance resources and membership options to stay prepared for upcoming regulatory shifts.
The evolving housing policy environment suggests landlords should remain vigilant and proactive to adapt to increased private rental sector demand and regulatory developments.
Sources: Landlord Today
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