Can I Afford It: What discount could I get?

The longer you have been a tenant, the bigger the discount you get off the market value of your home, up to a maximum discount of £84,600 or £112,800 if you live in London.

Discount levels for houses and flats are worked out differently, and start at three years of eligible tenancy, increasing to a maximum of 70% of the property value depending how long you’ve been a tenant.

House

You get a 35% discount if you’ve been a public sector tenant for three years. The discount remains at 35% until you have five years public sector tenancy.

After year five, the discount goes up by 1% for every extra year you’ve been a public sector tenant, up to a maximum of 70% – or £84,600  across England and £112,800 in London boroughs, whichever is lower.

Flat

You get a 50% discount if you’ve been a public sector tenant for three years. The discount remains at 50% until you have five years public sector tenancy.

After year five, the discount goes up by 2% for every extra year you’ve been a public sector tenant, up to a maximum of 70% – or £84,600 across England and £112,800 in London boroughs, whichever is lower.

Buying a House
Example 1
Current house value £120,000
Years as a tenant 10 years
Eligible discount
(35%+1% for each year over 5 years)
40%
Discount value £48,000
Price you pay for house
(£120,000 less £48,000)
£72,000
Buying a House
Example 2 (London)
Current house value £430,000
Years as a tenant 20 years
Eligible discount
(35%+1% for each year over 5 years)
50%
Discount value £112,800
Price you pay for house
(£430,000 less £112,800)
£317,200
Buying a Flat
Example 1
Current flat value £100,000
Years as a tenant 10 years
Eligible discount
(50%+2% for each year over 5 years)
60%
Discount value £60,000
Price you pay for house
(£100,000 less £60,000)
£40,000
Buying a Flat
Example 2 (London)
Current flat value £270,000
Years as a tenant 10 years
Eligible discount
(50%+2% for each year over 5 years)
60%
Discount value £112,800
Price you pay for house
(£270,000 less £112,800)
£157,200

Click here for a handy Right to Buy Calculator. It’ll help you work out the discount you could receive.

You could also check out local estate agents and property websites to get a rough idea of what your property could be worth.

Remember, buying is a big decision, and you should always get financial and legal advice before deciding whether to make your home your own. Take a look at our Can I afford it? page which gives an overview of other costs you will need to consider.