At a glance 

Right to Buy is housing policy in England only.   

Right to Buy was abolished in Scotland in July 2016. It was abolished in Wales in January 2019.   

In Northern Ireland, there is an equivalent scheme called the House Sales Scheme. A 2018 consultation asked for views on options for its future, including withdrawing the scheme. A decision on the future of the scheme is still awaited.  

In England: 

The Right to Buy (RTB) scheme gives eligible tenants of local authority landlords a statutory rightto buy their home at a discounted price. 

• Right to Buy has proved a popular route to ownership for social housing tenants who can afford a mortgage for the discounted price. 
• A similar scheme, Right to Acquire (RTA), is available to some housing association tenants but the discounts are less generous and it is open to fewer tenants. 
• The RTB is being extended to housing association tenants in England, and a pilot is underway in the Midlands to test and learn about certain aspects of the scheme. 

Most housing association tenants have had a statutory Right to Acquire their homes at a discount. The Right to Acquire works in the same way as the Right to Buy, but with some important differences: 

• Associations may sell the tenant an alternative property to the one in which they live. 
• The discount offered is significantly less generous than that offered under the Right to Buy. The discount is a flat rate and does not vary depending on the length of tenancy. 

At a glance 

Right to Buy is housing policy in England only.   

Right to Buy was abolished in Scotland in July 2016. It was abolished in Wales in January 2019.   

In Northern Ireland, there is an equivalent scheme called the House Sales Scheme. A 2018 consultation asked for views on options for its future, including withdrawing the scheme. A decision on the future of the scheme is still awaited.  

In England: 

The Right to Buy (RTB) scheme gives eligible tenants of local authority landlords a statutory rightto buy their home at a discounted price. 

• Right to Buy has proved a popular route to ownership for social housing tenants who can afford a mortgage for the discounted price. 
• A similar scheme, Right to Acquire (RTA), is available to some housing association tenants but the discounts are less generous and it is open to fewer tenants. 
• The RTB is being extended to housing association tenants in England, and a pilot is underway in the Midlands to test and learn about certain aspects of the scheme. 

Most housing association tenants have had a statutory Right to Acquire their homes at a discount. The Right to Acquire works in the same way as the Right to Buy, but with some important differences: 

• Associations may sell the tenant an alternative property to the one in which they live. 
• The discount offered is significantly less generous than that offered under the Right to Buy. The discount is a flat rate and does not vary depending on the length of tenancy. 

Our position 

In the retail lending market, we are neutral on RTB as housing policy, but support lenders who participate in this market by ensuring that government understands lenders? positions and does not have unrealistic expectations of willingness to lend. 

Why this is important for lenders 

The Right to Buy does not confer a right to a mortgage, so lenders need to manage expectations both of customers and government. 

Even if lenders are satisfied that RTB buyers can afford the mortgage, other factors can influence lending decisions. These factors include: 

• Location, and whether there is an established market for the property 
  • If few properties in the area, estate or block have been sold, there might not be a well-developed market for them, and valuers would raise this in their reports. 
• The type and construction of the property and whether it is suitable for a mortgage 
  • Historically, many properties in the social rented sector were not designed with private ownership in mind. 
  • Non-traditional methods of construction and design/ configuration of properties and blocks can mean some properties might not be suitable mortgage security. 
  • Properties in high-rise blocks often fall outside lending policies 
• High service charges and maintenance costs for some blocks can also impact affordability and the overall lending decision.