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 6 April 2023, the maximum discount available is £96,000. This figure increases annually by a percentage equal to the percentage change in the consumer price index (rounded down to the nearest £100) and applied to applications received on or after 6 April 2023.
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).
Qualifying % = 35% (up to 5 years tenancy) + 15 x 1% = 50%
Based on a property valuation of £200,000 x 50% = £100,000
In this case, the maximum discount of £96,000 is applied. Therefore the house would be offered for sale at £104,000.
Right to Buy calculator
Use the online calculator to give you a rough guide to what discount you may be eligible for.