The UK government has announced significant reforms to the Right to Buy scheme, aiming to create a fairer and more sustainable framework for council tenants wishing to purchase their homes. These changes come as part of a broader effort to support local authorities and address long-standing challenges within social housing.

Revising Eligibility and Discount Rules

One of the key proposed reforms is an increase in the minimum eligibility period for tenants. Currently set at three years, tenants would need to wait ten years before qualifying to buy their council home. This change is intended to encourage longer-term tenancy and help councils better manage their housing stock.

Discounts available under the scheme would also be adjusted. Instead of the current system, discounts would start at 5% of the property value and increase by 1% for each additional year of tenancy, up to a maximum of 15% or the applicable cash cap, whichever is lower. This tiered approach aims to balance tenant benefits with the need to maintain social housing resources.

Additionally, a 35-year exemption period would be introduced for new-build social homes. This means that newly constructed council properties could not be sold under Right to Buy for 35 years following their completion, helping to preserve fresh social housing stock for longer.

Rationale Behind the Changes

The Right to Buy scheme, originally introduced by Prime Minister Margaret Thatcher in the 1980s, was designed to empower council tenants in England and Wales by granting them the opportunity to purchase their homes. However, the policy has attracted controversy over the years, particularly regarding the imbalance between homes sold and those replaced.

Gavin Smart, Chief Executive Officer of the Chartered Institute of Housing (CIH), welcomed the government’s focus on reform. He stated: “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.”

Smart emphasised that the confirmed measures represent a positive step towards addressing the longstanding imbalance between homes sold and those replaced. He also highlighted the importance of further work on fraud prevention and the scheme’s impact in rural areas to ensure fairness and sustainability.

Recent Discount Reductions

While the Labour government has not abolished Right to Buy, it has taken steps to reduce the maximum discounts available. In the October 2025 Budget, the maximum discount was sharply cut from £136,000 to £16,000 in most London boroughs, and from £102,000 to £38,000 outside the capital. These reductions reflect ongoing efforts to limit the financial impact of the scheme on social housing availability.

What this means for landlords

For landlords and agents managing social housing or working with council tenants, these reforms signal a shift towards longer tenancy durations before properties can be purchased. The increased eligibility period and revised discount structure may reduce the turnover of social homes sold under Right to Buy, potentially stabilising the availability of affordable housing stock.

Moreover, the 35-year exemption on new builds could influence investment and development strategies, as newly constructed social homes will remain within the public housing sector for a longer period. Landlords should monitor these changes closely, as they may affect tenant demand and the dynamics of council housing portfolios.

Source: Based on reporting from Property118

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