How is the cost of the house worked out?

The price of the house equals the market value minus any discount. A valuer decides what the market value should be. The market value is what the valuer thinks your home is worth, based on the size, condition and what other properties in your area have sold for. The valuer will not take into account any improvements you have made on the property as this may increase the market value and you would end up paying for the improvements twice.

How much discount will I get?

The amount of discount you get is worked out differently depending on whether you had the original right to buy or the modernised right to buy. If you are making a joint application with another tenant or a member of your family and you have lived in the property (or other qualifying properties) for different lengths of time, we will use the longer period of time to calculate the discount.

Discount for people with the original right to buy

If you are buying a house:

• minimum discount = 32% after 2 years as a tenant
• discount increases by 1% each year thereafter
• maximum discount = 60%

If you are buying a flat:

• minimum discount = 44% after 2 years as a tenant
• discount increases by 2% each year thereafter
• maximum discount = 70%

Discount for people with the modernised right to buy

The discount is the same for flats and houses:

• minimum discount = 20% after 5 years as a tenant
• discount increases by 1% each year thereafter
• maximum discount = 35%, but not more than £15,000.

Selling the house on

If you sell the home within three years of buying it, you will have to pay back all or some of your discount:

• 1 year - repay 100% of discount
• 2 years - repay 66% of discount
• 3 years - repay 33% of discount

If you sell within three years, you do not have to repay the discount if:

• one joint owner is buying out the other joint owner
• you sell off part of the home, but continue to live in the remaining part
• you sell the home to a member of your family who has been living there with you for the past year
• you die and the home is sold as part of your estate
• your home is subject to a compulsory purchase order.

Restriction on double discounts

You can only benefit from the discount once. If you have already bought a property using the right to buy system and now want to buy another (for example, because you have sold your previous home to move to a new area), the amount of discount you received on the first property will be deducted from the discount you receive on the second property. This restriction also applies to your partner and any joint tenants living with you in the second property.