Right to Buy Discount Calculator United Kingdom

What the Right to Buy discount calculator does

The calculator estimates how much a qualifying tenant could save when buying the council or housing association home they rent, and the price they would pay after the discount. It takes the market value of the property, the type of home, how long you have been a public-sector tenant and your region, then applies the scheme’s percentage and cash limits.

Right to Buy lets many secure tenants in England buy their home for less than its open-market value. The discount combines a percentage based on how long you have been a tenant with a cash limit, and the two interact, so the headline percentage rarely tells the whole story. The tool shows the result of both in one figure.

How the discount is built up

You need at least 3 years as a public-sector tenant to qualify. The discount then starts from a minimum that depends on the type of home: 35% for a house and 50% for a flat.

After 5 years, each further year of tenancy adds 1% for a house and 2% for a flat, so a long-standing flat tenant reaches the ceiling sooner than a house tenant with the same tenancy length. The calculator adds these together and stops at the overall ceiling of 70%.

The two caps that limit your discount

Two limits apply, and the smaller one wins. The percentage cannot exceed 70% however many years you have been a tenant, and the discount in pounds cannot exceed the maximum cash discount for your region.

The cash caps are low compared with most property values, so on many homes the cash cap decides the discount rather than the percentage. The calculator applies both and reports the lower result, which is what sets your price.

Why region matters

The maximum cash discount varies across England, from £16,000 in London to £38,000 in the South East, with figures between those in other regions. Two identical tenancies on identical properties can therefore get different discounts purely because of location. Selecting your region tells the calculator which cap to use.

The cap is a common source of confusion, because a tenant expecting a large percentage discount can find it cut sharply by the cash limit for their area. Seeing the capped figure early helps you set expectations before you apply.

A worked example

A tenant of 10 years in the South East wants to buy a house valued at £200,000. The house discount is 35% plus 1% for each of the 5 years beyond the fifth, so 40%, which would be £80,000. The South East cash cap is £38,000, so the discount stops there and the price to pay is £162,000.

What you need to enter

• The current market value of your home, ideally a recent estimate rather than what it was worth years ago.
• The type of property, a house or a flat, since they follow different discount rules.
• The number of qualifying years you have been a public-sector tenant.
• Your region, so the correct cash cap is applied.

If you are unsure of the value, a cautious estimate keeps the result from being over-optimistic.

Reading your result

The calculator shows the discount percentage worked out from your inputs, the discount in pounds after the caps and the price you would pay. If the pound figure is well below what the percentage suggests, the cash cap is the limit that applies.

Use the price as a planning figure for a mortgage or savings conversation, not as a final offer. Your landlord confirms eligibility, the valuation and any conditions on the discount during the application, and those take precedence over any estimate.

Points to check before you apply

Right to Buy usually carries a repayment obligation if you sell within a set period after buying, so a quick sale can mean paying back part of the discount. Flats can also bring service charges, and eligibility depends on your tenancy history.

The government sets the percentages and cash caps and changes them from time to time, so recalculate when the rules change or your circumstances do, and confirm the details with your council or housing association before committing.

Costs beyond the discount

Buying a home you have rented brings costs a tenant does not usually face. A mortgage means arrangement and valuation fees and monthly repayments that can be higher than your current rent. Conveyancing has its own charges, and a survey is wise, particularly on an older property where repairs may be due.

As an owner you also take on what the landlord used to cover: buildings insurance, maintenance and, for a flat, service charges and a share of major works. Leaseholders can face large one-off bills for communal repairs such as a new roof or lift. Including these costs alongside the discount gives a fuller picture of what buying will cost each year.

This is general information only and not financial advice.

About This Right to Buy Discount Calculator

Use this right to Buy discount calculator to get an instant, accurate estimate. The figures follow official GOV.UK guidance and every rate and threshold is kept up to date for 2026. Adjust the inputs above to match your situation, or browse all our calculators to plan your next step.