Right to Buy discount: how much can you get in 2026?
How much discount can you get with Right to Buy? In England, your Right to Buy discount depends on your home, qualifying tenancy history and location. Although the percentage can reach 70%, current cash caps for new applications range from £16,000 to £38,000.
Qualifying for 40% or 60% doesn’t necessarily mean getting that percentage off your home. The cash cap may produce a smaller reduction.
This guide covers the Right to Buy discount calculation. If you’re still checking the basics, our guide to how Right to Buy works explains the scheme.
How much Right to Buy discount can you get?
Before any further reductions, your discount is the lower of:
- The percentage you qualify for, up to 70% of your home’s market value.
- The maximum cash discount for your region, including any local exception.
Houses and flats build up their percentage discounts differently. Your landlord confirms your qualifying tenancy history, valuation and final discount.
The government’s Right to Buy reform announcement sets out future changes to eligibility and percentage discounts. The calculations below reflect the rules currently shown in GOV.UK guidance, checked on 2 October 2026.
How is the Right to Buy discount calculated?
The basic calculation is:
Market value − confirmed discount = purchase price
| Item | Example |
|---|---|
| Market value | £180,000 |
| Confirmed discount | £26,000 |
| Purchase price | £154,000 |
The discount reduces what you pay. It isn’t money paid into your bank account.
How much discount do you get on a house?
For a house, three to five years of qualifying public-sector tenancy gives a 35% discount. After five years, add one percentage point for each extra qualifying year, up to 70%.
Ten years gives 40%: the starting 35%, plus five percentage points.
| House example: North West | Amount |
|---|---|
| Market value | £150,000 |
| Qualifying tenancy | 10 years |
| Percentage entitlement | 40% |
| Value of percentage discount | £60,000 |
| Regional cash cap | £26,000 |
| Discount after applying the cap | £26,000 |
| Purchase price | £124,000 |
The £26,000 cap limits the Right to Buy discount, despite the 40% entitlement.
How much discount do you get on a flat?
For a flat, three to five qualifying years gives 50%. After five years, add two percentage points for each additional qualifying year, up to 70%.
Ten years therefore gives 60%, before the cash cap and any further adjustments.
| Flat example: Yorkshire and the Humber | Amount |
|---|---|
| Market value | £120,000 |
| Qualifying tenancy | 10 years |
| Percentage entitlement | 60% |
| Value of percentage discount | £72,000 |
| Regional cash cap | £24,000 |
| Discount after applying the cap | £24,000 |
| Purchase price | £96,000 |
The government’s Right to Buy guide explains that qualifying public-sector tenancies needn’t be continuous. Relevant periods with different landlords can count. For a joint purchase, the applicant with the longest qualifying history can provide the higher rate, subject to the limits.
What is the maximum Right to Buy discount in your area?
These are the current cash caps for new applications, according to GOV.UK discount guidance.
| Region | Maximum cash discount |
|---|---|
| North East | £22,000 |
| North West | £26,000 |
| Yorkshire and the Humber | £24,000 |
| East Midlands | £24,000 |
| West Midlands | £26,000 |
| Eastern | £34,000 |
| South East | £38,000 |
| South West | £30,000 |
| London | £16,000 |
There are important exceptions:
- Eastern: Watford’s cap is £16,000.
- South East: £16,000 applies in Reading Borough, West Berkshire, Hart, Oxford, Vale of the White Horse, Tonbridge and Malling, Epsom and Ewell, and Reigate and Banstead.
- London: Barking and Dagenham and Havering have a £38,000 cap.
Your landlord confirms which limit applies to your home.
Why might your Right to Buy discount be lower?
The cash cap is only one limit. Other factors include:
- Property value: the percentage calculation starts with the market value, so a lower valuation can mean a lower cash discount.
- Qualifying tenancy: fewer qualifying years can mean a lower percentage entitlement.
- Previous discounts: a previous discounted public-sector purchase can reduce your entitlement.
- Cost floor: qualifying landlord spending on building, acquiring, repairing or maintaining your home can reduce or remove the discount.
Our guide to the Right to Buy cost floor rule explains that adjustment in more detail.
Does a longer tenancy always mean a bigger discount?
No. Extra qualifying years can increase the percentage, but may leave the cash discount unchanged once you’ve reached the regional cap.
In the house example above, increasing the entitlement from 40% to 45% would raise the percentage-based figure from £60,000 to £67,500. Both exceed £26,000, so the cap would still limit the discount to £26,000.
What if you applied before 21 November 2024?
Earlier applications: eligible applications received by the landlord before 21 November 2024 can retain the previous cash maximums of £102,400 outside London or £136,400 in London. Percentage limits and other adjustments still apply. These aren’t the standard caps for new applications in 2026.
How does your discount affect the mortgage?
A lower purchase price can reduce the amount you need to borrow. Some lenders may also let you use your Right to Buy discount as a deposit.
That doesn’t automatically mean you can buy without a separate cash deposit. The lender still checks your income, affordability, credit history and the property. We would check the confirmed discount and purchase price before assessing suitable mortgage options.
Estimate your Right to Buy purchase price
Use our Right-to-Buy mortgage calculator to explore your discounted purchase price, approximate mortgage amount, potential deposit position and estimated monthly repayments.
Update your estimates when your landlord confirms the figures. Calculator results don’t confirm your statutory discount or mortgage approval.
When to get mortgage advice
Advice can help when you have, or expect, an offer and want to check whether the purchase price is affordable. It’s also useful if you’re unsure about the deposit, self-employed, have adverse credit or are buying a property that may be harder to mortgage.
Our Right-to-Buy mortgage advice can help you assess the borrowing side. Your landlord determines the statutory discount.
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Frequently asked questions
What is the maximum Right to Buy discount in 2026?
For new applications, cash caps range from £16,000 to £38,000. Your percentage entitlement and other adjustments may produce a lower discount.
Can you get a 70% Right to Buy discount?
You can qualify for a 70% percentage entitlement, but the cash cap may mean receiving much less than 70% off the property.
How many years do you need for the maximum discount?
The percentage reaches 70% after 40 qualifying years for a house or 15 for a flat. You may reach the cash cap much earlier.
Is the discount different for houses and flats?
Yes. Houses start at 35% and flats at 50%. After five years, houses gain one percentage point annually and flats gain two.
Can the cost floor reduce your discount?
Yes. Qualifying landlord expenditure can reduce or remove it, increasing the purchase price compared with your initial estimate.
Can the discount count as a mortgage deposit?
Some lenders accept it, but this depends on their criteria and your application. You’ll also need to allow for purchase costs.