The Right to Buy– An Update on Proposed Reforms

Prior to the 2024 General Election, the Labour Government pledged to review the Right to Buy (RTB), and once they came into power, this resulted in the maximum cash discount level being reduced to pre-2012 levels, from 21 November 2024.

Following this, the Government launched a consultation to gather views on wider reforms to the RTB scheme, and the Government’s response to the consultation was published in July 2025. Despite some calls for the RTB to be abolished completely (as has been done in Scotland and Wales), the Government reaffirmed its commitment to the scheme and set out some proposed changes to be implemented.

The Government confirmed on 28 April 2026 that it would be bring forward reforms to the RTB, with the aim to support the retention of social housing stock whilst still providing a path for longstanding tenants to purchase their homes.

On 14 May 2026, the Government introduced the Social Housing Bill (the “Bill”) to Parliament. Minister of State for Housing and Planning, Matthew Pennycook, confirmed in a letter to council leaders and social housing providers in England that comprehensive reforms to the RTB are to be at the heart of the Bill. 

The accompanying Guide to the Bill confirms the aim is to provide a fairer, better value and more sustainable scheme, acknowledging that many of the homes sold under the RTB have not been replaced. 

Some of the new reforms contained in the Bill include:

• The tenancy eligibility period, which currently requires a tenant to be a public sector tenant for at least 3 years, will be increased up to 10 years before a tenant can apply to buy their home.
• The starting discount amount will be 5% of the property value which will increase by 1% each year up to a maximum discount of 15% of the property value or the cash cap (whichever is lower). This is a significant reduction in the maximum discount amount which is currently 70% of the property value.
• Newly built social housing will be exempt from being sold under the RTB for a period of 35 years after construction.
• Rural properties, and council homes for market rent, will be exempted from the RTB scheme.
• Tenants who have previously benefited from the scheme will be prevented from exercising the RTB, although there will be exceptions for victims of domestic abuse and in cases of irretrievable relationship breakdown.
• The period in which all or part of the RTB discount must be repaid by the tenant upon a sale of the property is to be increased from 5 to 10 years.
• The period in which a local authority has the right of first refusal when a property purchased under the RTB is sold will be applied indefinitely.
• The statutory timescales for a local authority to confirm the RTB will be increased from 4 to 8 weeks, together with increasing the period for issuing notices with the landlord’s offer from 8 to 12 weeks for houses (12 to 16 weeks for flats and leasehold houses). In addition, the standard timescales can be suspended for up to 6 months to allow local authorities to investigate fraud.

These reforms will be introduced alongside changes already implemented including the reduction in maximum cash discount amount and increasing the cost floor protection (which ensures the purchase price does not fall below the amount spent on build/repair costs) from 15 to 30 years.

In addition, local authorities are now allowed to retain 100% of RTB sale proceeds and combine these with grant funding to build and purchase more replacement housing.

It is expected that these reforms, whilst not expressly mentioned, will also apply to tenants of private registered providers who have the preserved RTB, as has been the approach previously when introducing changes to the RTB.

The Bill will also remove the requirement for local authorities to obtain the consent of the Secretary of State to consent to disposals or redevelopment of their housing assets – this is never refused in practice so will remove unnecessary barriers and make it easier for councils to develop social and affordable housing.

However, the Bill will introduce a requirement for private registered providers to notify local authorities or other bodies prior to selling a social home outside the social housing sector. The aim is that this will improve transparency and help to maximise opportunities to retain homes within the social housing sector.

It is to be seen how quickly the Bill will pass through Parliament; it is anticipated it will not be until later in 2026/27. This could mean an influx in RTB applications before the new changes are introduced, as was the case in November 2024, although the large decline in RTB sales generally since the earlier reforms suggests there may be a reduced impact overall.

Our Housing Policy, Advisory and Regulatory team can assist landlords in reviewing applications and queries on the RTB or preserved RTB together with related policies and procedures. Should you require further advice at this time, please do not hesitate contact Jabir Dar or Sarah Orchard.

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