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 £87,200 or £116,200 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 £87,200 across England and £116,200 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 £87,200 across England and £116,200 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 | £116,200 |
| Price you pay for house (£430,000 less £116,200) |
£313,800 |
| 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 | £116,200 |
| Price you pay for house (£270,000 less £116,200) |
£153,900 |
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.