(Turn long-term rent into home ownership, understand the discounts, and secure the mortgage you’ll need to complete the purchase.)
At a Glance
- Right-to-Buy (RTB) lets eligible council tenants in England buy their home with a discount now capped between £16-38k, region-by-region. Legislation.gov.uk
- Right-to-Acquire (RTA) lets many housing-association tenants buy their property with a £9-16k discount, also based on local authority area. GOV.UK
- Both schemes need a regular residential mortgage (or cash) for the price after discount.
- Specialist lenders accept RTB/RTA applications up to 100 % of the discounted price—so you may not need extra savings for deposit.
- Key pitfalls: early-sale “discount repayment” claw-back (first 5 yrs), affordability on variable-rate SVR deals, and strict application deadlines.
1 | Scheme at a glance
| Feature | Right-to-Buy | Right-to-Acquire |
|---|---|---|
| Landlord type | Local authority / council | Registered housing association |
| Years as tenant | 3+ yrs public-sector tenancy (doesn’t have to be continuous) | 3+ yrs public-sector tenancy |
| Discount | Houses: 35 % +1 %/yr after 5 yrs Flats: 50 % +2 %/yr after 5 yrs Cash cap: £16k-£38k (region) |
Flat cash discount £9k-£16k (area table) |
| Funding | Mortgage up to 100 % of discounted price | Same |
| Discount pay-back | Repay % of discount if selling within 5 yrs | Same |
| Deadlines | Landlord responds within 4, 8 & 12 weeks to forms RTB1/RTB2/Section 125 | RTA1/RTA2 mirrors RTB timings |
2 | Step-by-step process
- Check eligibility & gather tenancy history.
- Submit Form RTB1 (or RTA1) to your landlord.
- Landlord confirms yes/no (RTB2/RTA2) within 4 weeks (8 weeks if tenancy unclear).
- Receive Section 125 (RTB) / Section 138 (RTA) offer notice – shows valuation, discount, price to pay, structural info.
- Apply for a mortgage while the offer is valid (usually 12 weeks).
- Instruct solicitor to carry out searches, check lease/freehold terms, complete conveyance.
- Exchange & complete – discount gets applied on completion statement.
3 | Mortgage options
| Lender stance | Max LTV* on discounted price | ERCs? | Notes |
|---|---|---|---|
| Mainstream banks (e.g. Halifax, NatWest, Barclays, Nationwide) | 100 % | Yes on fixes | No cash deposit needed if your purchase price ≤ discounted value. Some require a modest deposit on flats or if price exceeds discount cap. |
| Specialist RTB lenders (e.g. Bluestone, Aldermore, Vida, Precise) | 100 % | Light or zero ERCs on variables | Often more flexible on credit history and employment quirks. |
| Credit unions / local-authority schemes | 100 % | Varies | Small geographic footprint, but rates can be competitive. |
4 | Discount caps – quick reference
As of the latest legislation (Nov 2024):
| Region | RTB max discount | RTA max discount |
|---|---|---|
| London | £16,000 | £16,000 |
| Eastern | £34,000 | £16,000 |
| North-West | £26,000 | £11-16,000 (area) |
| South-East | £38,000 | £16,000 |
(Caps change periodically; always confirm current figures on GOV.UK or your landlord’s offer notice.) Legislation.gov.ukGOV.UK
5 | Costs to budget for
| Item | Typical range |
|---|---|
| Mortgage arrangement fee | £0 – £999 |
| Valuation / survey | £0 – £500 (often free on RTB deals) |
| Conveyancing | £700 – £1,200 |
| Land Registry fee | £45 – £135 |
| Buildings insurance (mandatory on completion) | £150 – £300/yr |
No Stamp Duty if price < SDLT threshold (currently £250k first-time buyers get higher threshold). Check latest bands.
6 | Pros & cons
 Pros |
 Cons |
|---|---|
| Buy below market value with substantial discount | Discount repayments if you sell within 5 yrs |
| Possible 100 % LTV mortgage (no cash deposit) | Valuation risk – pay market price, not local “right-to-buy bargain” |
| Step onto ladder without moving | Some lenders offer only variable/SVR rates |
| Inherit future value growth | Service-charge hikes (especially for ex-council flats) |
7 | Common questions
Can I use a guarantor?
Yes—some lenders combine guarantor support with RTB 100 % LTV.
What if my landlord refuses?
Appeal to the First-tier Tribunal (Property Chamber). There’s no appeal for RTA; refusal reasons are strictly defined (e.g. sheltered housing).
Do shared owners qualify?
No—you must hold a secure or assured tenancy, not a shared-ownership lease.
Will the discount be taxable?
No, but if you sell within 5 years you repay some/all of it.
8 | Next-step checklist 
- Download RTB1 or RTA1 form.
- Order free Experian/Equifax credit report.
- Collect 3 months’ payslips & bank statements.
- Get a mortgage Agreement-in-Principle from a lender that explicitly accepts RTB/RTA.
- Submit the application before the deadline on your Section 125 / 138 notice.
Need personalised advice?
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