Right to Buy: Labour government scales back sale of council homes in England

The Labour government is gradually scaling back Right to Buy, introduced in 1980 under Margaret Thatcher. It lets eligible council tenants in England buy their home at a discount on its market value. The topic was covered by BBC News. We could not access its article, so the facts below come from government documents and House of Commons Library briefings.

What has changed

According to the House of Commons Library, more than two million homes have been sold through the scheme since it began. The government believes that the failure to replace homes sold with new ones contributes to rising housing need in many communities.

The changes are being introduced in stages:

• from 21 November 2024, maximum discounts fell to the regional levels last seen before 2012, ranging from £16,000 to £38,000 depending on the area;
• the period during which a council can limit the discount so the price does not fall below the cost of building and maintaining the home was extended from 15 to 30 years;
• councils can keep all the proceeds from sales. Previously part went to the Treasury, around £183 million a year in total.

In July 2025, following a consultation, the government confirmed further plans. According to the House of Commons Library, these include extending the required tenancy period from three to ten years, lower percentage discounts and the same rules for houses and flats. Some newly built social homes are also to be exempted from sale, and there are measures against speculative buying. Further changes are in the Social Housing Bill, which the House of Commons Library says is still going through Parliament.

What the effect will be

The government estimates that with lower discounts, about 1,700 tenants a year will use the scheme. Sales over five years are expected to be around 25,000 lower, so the social rented sector will be larger. The government stresses that it still wants tenants to be able to buy their home.

The government says that selling homes at a discount has reduced the stock of social rent homes and the number of large family homes. These are more expensive to replace and needed to tackle homelessness. It also argues that the scheme dampened councils' willingness to build, because new homes could be sold at a discount as soon as three years after being built.

According to the House of Commons Library, the changes have generally been welcomed by people working in housing. The BBC, judging by its summary, asks whether this will really fix Britain's social housing problems.

What this means for you

The changes affect council tenants in England. People who rent from a council and are thinking of buying their home should check the current rules with their council. Maximum discounts are now lower, and a longer required tenancy period is planned. Homes rented from housing associations are generally not covered by Right to Buy on the same terms.