How to Buy Your Council House

Buying your council house is a major step towards homeownership and, for many tenants across the UK, it offers a rare opportunity to purchase a property at a substantial discount. This is made possible through the Right to Buy scheme, which allows eligible council tenants in England to buy their home directly from the local authority. The process is well established and, while it involves several legal and financial steps, it is more accessible than many private house purchases.

This guide explains who can apply, how the scheme works, what the eligibility criteria are, and what to expect throughout the process. It is written for council tenants who are considering taking ownership of their home, either alone or jointly with family members, and want to understand the costs, responsibilities and stages involved.

What Is the Right to Buy Scheme?

The Right to Buy scheme was introduced in the 1980s and gives secure tenants of council properties in England the legal right to purchase their home, usually at a discount. The amount of discount depends on how long you have been a public sector tenant, the type of property you live in, and its current market value. For houses, the discount can reach up to 70 percent of the market value, while flats may qualify for a discount of up to 60 percent. The maximum discount allowed is capped and reviewed annually.

The scheme is only available in England, as it has been replaced or withdrawn in Scotland, Wales and Northern Ireland. Housing association tenants may be eligible for a similar offer through the Right to Acquire scheme, though it has different terms and a lower discount.

Who Is Eligible to Buy Their Council House?

To be eligible under Right to Buy, you must be a secure tenant of a local authority or a housing association property with preserved rights. You must have been a public sector tenant for at least three years, although this does not have to be continuous or with the same landlord. The property must be your only or main home, and it must be self-contained.

You can apply on your own or jointly with up to three family members who have lived with you for at least twelve months. Certain exceptions apply, such as homes for the elderly or disabled that are part of sheltered housing, or properties scheduled for demolition. If you have rent arrears or are subject to legal proceedings related to tenancy breaches, your application may be paused or refused.

The Application Process Step by Step

The first step is to complete the RTB1 application form and submit it to your landlord. This form asks for details about you, your tenancy and any joint applicants. Once received, the council must respond within four weeks, or eight weeks if you have been a tenant for less than three years. Their response, known as an RTB2 notice, will confirm whether you have the right to buy and outline the next steps.

If approved, the council will send you a Section 125 Notice, which sets out the property’s market value, your discount, the purchase price and details of any structural defects or responsibilities. You then have 12 weeks to decide whether to proceed. During this time, you can arrange a mortgage, appoint a solicitor and instruct a survey if needed.

If you choose to proceed, your solicitor will handle the legal work, carry out property searches and arrange for the transfer of ownership. Once contracts are exchanged and funds are transferred, you will officially own your home. If you decide not to buy, you can continue renting as normal without penalty.

Costs and Funding

While the discount can be generous, buying your council house still requires a financial commitment. You will need to secure a mortgage unless you are buying with cash, and you must cover legal fees, survey costs and possibly mortgage arrangement fees. Stamp Duty Land Tax may be payable depending on the value of the home, although many purchases fall below the threshold.

Your local authority may offer advice on independent financial advisers or mortgage brokers who specialise in Right to Buy purchases. Some lenders offer specific mortgage products for council house buyers, and your solicitor will ensure the legal process complies with the scheme rules.

Responsibilities After Purchase

Once you buy your council house, you become fully responsible for the property. You will need to maintain the structure, pay for repairs and arrange buildings insurance. If you buy a flat, you will usually become a leaseholder and will pay service charges and ground rent to the freeholder, which is often the council. You may also be liable for major works or improvement costs to shared areas.

The property cannot be sold or transferred for five years without repaying part of the discount. If you sell within ten years, you must first offer it back to the council or social landlord before placing it on the open market.

Case Example

A tenant in Leeds had lived in her council house for 12 years and applied under Right to Buy in early spring. Her application was approved within a month, and the Section 125 Notice valued the property at £180,000, offering her a £67,500 discount. With the help of a mortgage broker, she secured a home loan and used personal savings to cover legal and survey costs. By early summer, the sale had completed, and she became the legal homeowner of a property she had lived in for over a decade.

Conclusion

Buying your council house through the Right to Buy scheme can be a valuable opportunity to achieve homeownership with a substantial discount. While the process involves paperwork, financial planning and legal steps, it is a well-supported scheme with clear timelines and structured guidance. If you are a long-term tenant looking to invest in your future, buying your home could provide long-term security, equity and independence.