A discount is applied to the purchase price of the property, depending on the type of property and how long someone has been a qualifying tenant for.
From 21 November 2024, the maximum discount available is £34,000. This follows a reduction in the discount by central government, which was previously set at £102,400.
The new lower discount rule will apply to applications received on and after Thursday 21 November 2024.
To calculate the discount, a percentage figure is applied to the value of the property. As of 26 May 2015 the following discount levels apply:
- 3 years: 35% discount for a house and 50% discount for a flat
- 4 years: 35% discount for a house and 50% discount for a flat
- 5 years: 35% discount for a house and 50% discount for a flat
- 6 years plus – add 1% per year for houses (up to 70% or the cash maximum – whichever is lower), add 2% per year for flats (up to 70% or the cash maximum – whichever is lower).
Example
Qualifying % = 35% (up to 5 years tenancy) + 15 x 1% = 50%
Based on a property valuation of £210,000 x 50% = £105,000
In this case, the maximum discount of £34,000 is applied. Therefore the house would be offered for sale at £176,000.
Things that may affect your discount
Your discount will be less if your landlord has spent money building or maintaining your home:
- in the last 30 years — if your landlord built or acquired your home before 2 April 2012
- in the last 15 years — if you’re buying your home through Preserved Right to Buy, or if your landlord acquired your home after 2 April 2012.
You will not get any discount if your landlord has spent more money than your home is now worth.
You might get a lower discount if you previously purchased another home through Right to Buy.
If you have made improvements to your home yourself, make sure you inform your landlord (as part of the application form) so that they can reflect this in the valuation.
Right to Buy calculator
Use the online calculator to give you a rough guide to what discount you may be eligible for.
