The number of council homes sold under the Right to Buy scheme in England nearly doubled in the 2025-26 fiscal year, with 14,275 properties sold, a 90% increase compared to the previous year. This surge followed changes to the scheme's discount caps implemented by the Labour government. The Right to Buy program allows eligible council tenants to purchase their homes at a discounted market price.
Prior to November 21, 2024, potential buyers could receive discounts of up to £136,400 in London boroughs and £102,400 outside the capital. Although discounts can theoretically reach 70% of a property's value, the lowered maximum caps made it difficult to achieve such high reductions. For instance, discounts in the South East capped at £38,000, and in some areas like West Berkshire and parts of Kent, they were as low as £16,000. This created a deadline effect, prompting a rush of applications from tenants aiming to secure purchases before the new caps were fully implemented.
Many of these applications, initiated before the November 2024 deadline, were finalized in the 2025-26 fiscal year, contributing to the heightened sales figures. Local authorities reported receiving £1.61 billion from these sales during the 2025-26 tax year, an increase of nearly 100% from the prior year. The average receipt per home sale was £112,900, a 5% rise.
Social Housing Stock and Replacement Concerns
The increase in home sales under Right to Buy has intensified concerns about the diminishing supply of social housing. Approximately 1.3 million households are currently on housing waiting lists, the highest number since 2014, according to the Resolution Foundation. Concurrently, the number of households in temporary accommodation is near a record high.
During 2025-26, only 3,452 new homes were funded through Right to Buy receipts, a figure substantially lower than the 14,275 homes sold and a 7% decrease from the previous year. This shortfall raises questions about the timely replacement of social housing units. Independent financial advisor Nouran Moustafa noted that while Right to Buy benefits individual homeowners, it negatively impacts the availability of social homes, shrinking the safety net for families and increasing reliance on the private rental market.
Proposed Reforms to Right to Buy
Reforms to the Right to Buy scheme are currently progressing through Parliament under the Social Housing Bill. Proposed changes include extending the minimum tenancy period required for eligibility from three years to ten years for public sector tenants. Additionally, newly built social homes would be protected from the scheme for 35 years, and 'hard-to-replace' rural homes would also be excluded. Adjustments to discount caps are also under consideration.
These potential changes could lead to another surge in applications, as tenants seek to purchase their homes before new regulations take effect. Finance expert Rachel Springall advised that the proposed reforms might prompt a rush of applications, recommending that tenants seek advice. The bill is expected to have its third reading in September, leaving a window for eligible tenants to initiate the purchase process under current rules.