Property sales under Right to Buy rise by 90% amid UK’s affordable housing crisis

Proposed changes to the scheme could see even more tenants rush to buy their council home in the coming months.

With the UK continuing to face a lack of affordable housing, thousands more people used the Right to Buy scheme to get onto the property ladder in 2025/26, according to latest data from local authorities. It revealed 14,275 council homes were sold under the scheme in England last year – a 90% increase on 2024/25.

“The short supply of affordable housing makes the Right to Buy scheme highly attractive for aspiring homeowners, giving them a chance to buy a home they already live in at a discounted price,” said Rachel Springall, Finance Expert at Moneyfactscompare.co.uk.

However, it should be noted that the discount was cut drastically from a maximum of £102,400 (or £136,400 in London) to between £16,000 and £38,000 (depending on location) for applications made on or after 21 November 2024 – which might explain the recent surge in sales under Right to Buy.

Indeed, the Ministry of Housing, Communities and Local Government reported that “Right to Buy applications increased sharply before lower discounts took effect” and suggested that some of the sales completed in 2025/26 likely relate to applications made under the previously higher caps.

The popularity problem

The latest figures contribute to the more than two million council properties that have been sold under Right to Buy since it was introduced in 1980 which, according to Springall, demonstrates the scheme’s “popularity among those who perhaps could not afford a property for sale on the open market”.

However, she warned that the number of homes sold under Right to Buy creates “a dilemma for the wider housing market, as social housing stock needs to be replaced”. Disappointingly, only 3,452 replacement properties were funded in 2025/26 through receipts from eligible sales – 7% fewer than in 2024/25.

While the new Prime Minister, Andy Burnham, committed to building more council homes in his first official speech, Springall said that the “scale and pace to achieve significant numbers of new dwellings has to be bold to cater to high demand”.

“A study from the Resolution Foundation revealed that 1.3 million households are on local authority housing waiting lists, the highest number since 2014, plus, there is a near-record high of households living in temporary accommodation,” she explained.

In the meantime, the Government is looking to safeguard the stock of social housing by reforming the Right to Buy scheme. Unfortunately for prospective buyers, the proposed changes currently going through Parliament include raising the eligibility period from a minimum of three years to 10 years before a tenant can apply to purchase their home and shielding new homes from the scheme for 35 years.

But, with a third reading of the bill not expected until next month, Springall reassured tenants there is still time to start the process of buying their home if they’re eligible under the current Right to Buy rules.

Mortgage rates add to affordability constraints

Even though the Right to Buy could help some people overcome the obstacle of affording a home, they’ll still need to contend with higher-than-desired mortgage rates.

“Those who have saved over recent years and are now finally ready to get a mortgage will be disappointed that mortgage rates have been climbing amid prolonged unrest in the Middle East, adding around £215^* a year in mortgage repayments in just one month of volatility,” said Springall.

It’s likely many will pay close attention to this year’s Autumn Budget – recently confirmed for late October – to find out whether it will contain anything that could support their aspirations of homeownership. Alternatively, for help navigating the ever-changing market, borrowers could speak to a broker.

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