Right to Buy Tenant Applications and Landlord Compliance
This article explores how Right to Buy currently works, recent changes and those pending, and how landlords can remain compliant when handling new applications.
19/12/2025By Pauzible Team · Editorial Team
Right to Buy has been a key element of housing policy for more than four decades. Originally introduced in 1980, the scheme is designed to provide secure council house tenants with the opportunity to purchase their homes at a discounted price. Over the years, the Right to Buy scheme has assisted millions of households to transition into home ownership, but it has also been the subject of debate, reform and ongoing government consultation.
For public sector landlords, the changing nature of the Right to Buy scheme means continually evolving compliance requirements. With recent changes to the scheme and further changes under discussion, landlords must stay informed and knowledgeable to process tenant applications correctly. This article explores how Right to Buy currently works, the changes that have been recently implemented and those still pending, and how landlords can remain compliant while handling new applications.
The Current State of Right to Buy
The Right to Buy scheme is designed to enable long-standing secure tenants in council houses to purchase the property they live in at a discounted price. The Right to Buy discount is based on several elements, including:
The type of property, i.e. whether it is a house or a flat
The market value of the property
Where the property is located
The length of the tenancy
For a tenant, buying a council house under the Right to Buy scheme involves eligibility checks, valuation, discount calculation and conveyancing. For landlords, the process requires strict adherence to statutory timelines, transparent valuation methods and proactive communication.
Until recent changes, the discounts under the scheme could reach up to £102,400. As of November 2024, however, the government reset the discounts to pre-2012 levels, reducing the amount to between £16,000 and £38,000, depending on the region. The reduction is a move to address concerns around the affordability of Right to Buy for councils, as well as dwindling social housing supply. Other additional reforms have also been implemented to address the issue, including:
Extended cost-floor protection: The cost-floor protection period has been extended from 15 to 30 years.
Retention of receipts: Councils can now retain 100% of their Right to Buy receipts, enhancing their capacity to deliver new homes.
Further Pending Reforms to the Scheme
Following the changes implemented in November 2024, further reforms have been proposed when parliamentary time allows. These include:
Longer tenancy requirement: The qualifying period would rise from the current three years to ten years before being able to buy a council house. This is designed to ensure that only tenants with a long-standing rental history in their council homes can apply, while also giving councils more scope to replace the stock that is being sold.
Exclusions for existing homeowners: People who already own a property, or who have previously taken advantage of the Right to Buy scheme, will generally no longer be eligible. Limited exceptions may apply in certain situations, such as applicants who are survivors of domestic abuse.
Revised discount structure: Under the new rules, discounts would begin at 5% of the property’s market value. Each additional year of tenancy would add 1%, up to a ceiling of 15% or the regional cash cap, whichever is lower. The same scale would apply to both houses and flats, with the intention of rewarding longer-term tenants more fairly while preventing excessive subsidy.
Exemptions for new-builds: Any newly constructed council houses will be protected from the scheme for a 35-year period. This measure will not affect existing tenants wishing to purchase their current home but will help local authorities maintain new housing supply. Outdated definitions within current exemptions will also be revised.
Stronger resale controls: The period during which councils can reclaim some or all of the Right to Buy discount they have provided if a property is sold will be doubled from five years to ten years. In addition, the local authority’s right of first refusal when a former council home is resold will be extended indefinitely.
How Can Landlords Prepare and Stay Compliant?
There are several key responsibilities for public sector landlords under the scheme and its reforms.
Right to Buy Scheme Information Document
First, a landlord must issue secure tenants with an up to date Right to Buy information document. This is a legal requirement and a new document must be supplied to tenants every five years. The following items should be included in this document:
1. Overview of the legal framework
The situations where tenants can and cannot exercise the Right to Buy
The exceptions set out in law that may prevent a sale
How the application process works from start to finish
How the property price will be determined for a tenant buying through the scheme
The statutory procedures for handling delays, whether caused by the landlord or the tenant
2. Upfront costs tenants should expect
The document must make clear that tenants will face initial expenses, which may include:
Stamp duty (where applicable)
Solicitor and surveyor fees
Valuation costs and charges linked to arranging a mortgage
3. Ongoing financial commitments
Owning a property means regular outgoings, which should be set out clearly. These will include:
Mortgage payments
Building insurance, life cover and mortgage protection policy payments
Council tax payments
Utility bill statements for gas, electricity, and water and sewerage
4. Risk of repossession
Tenants must be reminded that failure to keep up with mortgage payments can result in repossession.
5. Maintenance and repair obligations
The document should highlight that homeowners are responsible for keeping their property in good condition. This could involve ongoing repair costs and, for flats or leasehold properties, additional service charges towards major works.
Admitting or Denying an Application
Secondly, when a tenant submits a Right to Buy application (using the RTB1 form), the landlord’s first duty is to confirm whether the application is valid and respond within the required timeframe.
Responding promptly: Once the RTB1 form is received, the landlord must issue a formal reply (RTB2 notice) within four weeks. If the tenant has had other public sector tenancies, the deadline extends to eight weeks. Missing these statutory deadlines allows tenants to invoke “delay procedures” and potentially claim compensation.
Valid applications: At a minimum, the RTB1 must include the property address and signatures of all applicants. Landlords should avoid rejecting applications for missing information, however, and instead work with tenants to collect what is required.
Eligibility checks: The tenancy must be a secure tenancy and the tenant’s main home. Certain tenancy types, such as introductory or tied to employment (such as police or fire service housing), are excluded. Court orders, such as bankruptcy or anti-social behaviour suspensions, can also potentially disqualify applicants.
Joint applications: All named tenants must sign the RTB1. If one tenant refuses to join, the application cannot proceed. Up to three family members who meet residency and relationship requirements may join an application.
Property exemptions: Some dwellings cannot be sold under Right to Buy. These include sheltered housing for the elderly, homes specifically designed for disabled tenants, accommodation linked to mental health support and properties earmarked for demolition.
Decision notice (RTB2): Once checks are complete, the landlord must issue the RTB2 notice confirming whether the application is admitted or denied. If admitted, the process moves to the valuation and offer stages. If denied, the notice must state the precise reasons, as incomplete reasoning may weaken the landlord’s position if the tenant reapplies or appeals.
Additional Steps for Landlords
Review eligibility protocols: Public sector landlords should ensure staff are trained to verify eligibility under both current rules and anticipated reforms. This includes tenancy length, ownership history and exclusion grounds (such as bankruptcy).
Standardise valuation processes: Independent and transparent valuations are critical when tenants apply to buy a council home. Disputes over valuation can delay the process and expose landlords to complaints or legal challenges.
Plan for resale scenarios: With resale restrictions likely to tighten under the reforms, landlords should prepare procedures for exercising the right of first refusal and managing discount repayment schedules should tenants sell.
Strategic reinvestment: The ability to retain 100% of sales receipts presents opportunities for councils to reinvest in stock. Long-term planning should include ring-fencing receipts for replacement housing and considering the 35-year new-build exemption in future supply strategies.
Conclusion
The Right to Buy scheme, while under reform, is set to remain in place for the foreseeable future, and it is the government’s challenge carefully to balance home ownership aspirations with the need to preserve affordable housing. For public sector landlords, it is critical to remain proactive and informed by updating compliance frameworks and communicating transparently with tenants. By doing so, they will meet legal obligations, reduce risks and contribute to the long-term stability of social housing.
FAQs
Q. What is Right to Buy?
A. The Right to Buy is a government policy that allows secure council tenants to purchase their homes at a discount, subject to eligibility and valuation rules.
Q. When will the Right to Buy discount be reduced?
A. Discounts were reduced in November 2024, reverting to pre-2012 levels.
Q. How long does the Right to Buy process take?
A. Statutory timelines mean landlords must acknowledge applications within four weeks and issue an offer within eight weeks. Delays can allow tenants to force progression through the court.
Q. Who is eligible for the Right to Buy scheme?
A. Currently, tenants with three years of secure tenancy may apply. Proposed reforms would increase this to ten years.
Q. Can tenants who already own a home apply?
A. Under planned reforms, tenants who own another property or have already used Right to Buy would be excluded, except in cases such as where applicants are survivors of domestic abuse.
Q. What happens if a tenant sells shortly after buying a council house?
A. If the property is sold within five years, tenants must repay some or all of the discount. Reforms would extend this repayment window to ten years.
Q. Are new council houses included in Right to Buy?
A. Currently, yes, but the government intends to exempt new social housing for 35 years from the scheme.
Q. What are landlords’ compliance duties under Right to Buy?
A. Landlords must provide tenants with information documents, assess eligibility, process applications within set timelines, and ensure that discounts and valuations are accurate.
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