Homes sold under Right to Buy rise by 90% - Over two million now sold since 1980
Prospective buyers are urged to seek advice as Right to Buy reforms edge closer and mortgage rates rise, analysis from Moneyfactscompare.co.uk reveals.
- 14,275 council homes were sold under the Right to Buy scheme in England during 2025-26, an increase of 90% compared to 2024-25, reported by local authorities.
- Local authorities received £1.61 billion from eligible Right to Buy sales during 2025-26, an increase of 99.6% compared with 2024-25. The average receipt per dwelling was £112,900, an increase of 5% compared to 2024-25.
- 3,452 replacement homes were funded through Right to Buy receipts from eligible sales during 2025-26, a decrease of 7% compared with 2024-25.
- Since the start of the Right to Buy scheme in 1980, until 31 March 2026, there have been over two million sales to tenants (2,052,813).
- Prospective buyers may be alarmed over rising mortgage rates. The Moneyfacts Average New Mortgage Rate rose to 5.59% at the start of August, up from 5.47% a month ago. A typical £250,000 mortgage over 25 years will cost £215 more per year in repayments as a result.
Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said:
“The short supply of affordable housing makes the Right to Buy scheme highly attractive for aspiring homeowners, giving them a chance to buy the home they already live in at a discounted price. There has been a significant rise in the number of council homes sold under Right to Buy in 2025-26, an increase of 90% compared with 2024-25. More than two million homes have now been sold under the scheme since it was launched in 1980 under the Housing Act, showing its popularity among those who perhaps could not afford a property for sale on the open market. However, the amount of homes sold under the scheme does create a dilemma for the wider housing market, as social housing stock needs to be replaced.
“Tackling the provision of social housing was part of the first official speech from the new Prime Minister, Andy Burnham, stating “we will build more council homes”. While this comment is positive, the scale and pace to achieve significant numbers of new dwellings has to be bold to cater to high demand. A study from the Resolution Foundation revealed that 1.3 million households are on local authority housing waiting lists, the highest number since 2014, plus, there is a near-record high of households living in temporary accommodation.
“There are currently proposed reforms to overhaul the Right to Buy scheme under the Social Housing Bill, currently going through Parliament. The proposed changes to the Right to Buy scheme could cause a rush for tenants to buy their home in the months ahead, so seeking advice would be wise. Potential buyers currently need just three years as a public sector tenant to quality, but this is planned to rise to 10 years under the new reforms. On top of this, to shield housing stock, newly built social homes will be protected from the scheme for 35 years, alongside an exclusion of ‘hard-to-replace’ rural homes and an adjustment to discounts on market value. A third reading of the bill is expected in September, so there is still time for tenants to start the process of buying their home if they are eligible under the Right to Buy rules.
“Overall, the planned reforms and limited housing stock will still mean some tenants are forced to rent privately if they need to settle at a specific location for work or family reasons. Alongside this, those who have saved over recent years and are now finally ready to get a mortgage will be disappointed that mortgage rates have been climbing amid prolonged unrest in the Middle East, adding around £215* a year in mortgage repayments in just one month of volatility. Prospective buyers will be keen to see what might be revealed in the Autumn Budget which could help their homeownership dreams become reality. While the rumour mill may churn over the next 12 weeks, Andy Burnham has recently ‘ruled out’ scrapping a Stamp Duty reform in this year’s Budget.”
*Based on a £250,000 mortgage over 25 years with the Moneyfacts Average New Mortgage Rate up from 5.47% a month ago to 5.59%.
Homes sold under Right to Buy rise by 90% - Over two million now sold since 1980
Prospective buyers are urged to seek advice as Right to Buy reforms edge closer and mortgage rates rise, analysis from Moneyfactscompare.co.uk reveals.
- 14,275 council homes were sold under the Right to Buy scheme in England during 2025-26, an increase of 90% compared to 2024-25, reported by local authorities.
- Local authorities received £1.61 billion from eligible Right to Buy sales during 2025-26, an increase of 99.6% compared with 2024-25. The average receipt per dwelling was £112,900, an increase of 5% compared to 2024-25.
- 3,452 replacement homes were funded through Right to Buy receipts from eligible sales during 2025-26, a decrease of 7% compared with 2024-25.
- Since the start of the Right to Buy scheme in 1980, until 31 March 2026, there have been over two million sales to tenants (2,052,813).
- Prospective buyers may be alarmed over rising mortgage rates. The Moneyfacts Average New Mortgage Rate rose to 5.59% at the start of August, up from 5.47% a month ago. A typical £250,000 mortgage over 25 years will cost £215 more per year in repayments as a result.
Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said:
“The short supply of affordable housing makes the Right to Buy scheme highly attractive for aspiring homeowners, giving them a chance to buy the home they already live in at a discounted price. There has been a significant rise in the number of council homes sold under Right to Buy in 2025-26, an increase of 90% compared with 2024-25. More than two million homes have now been sold under the scheme since it was launched in 1980 under the Housing Act, showing its popularity among those who perhaps could not afford a property for sale on the open market. However, the amount of homes sold under the scheme does create a dilemma for the wider housing market, as social housing stock needs to be replaced.
“Tackling the provision of social housing was part of the first official speech from the new Prime Minister, Andy Burnham, stating “we will build more council homes”. While this comment is positive, the scale and pace to achieve significant numbers of new dwellings has to be bold to cater to high demand. A study from the Resolution Foundation revealed that 1.3 million households are on local authority housing waiting lists, the highest number since 2014, plus, there is a near-record high of households living in temporary accommodation.
“There are currently proposed reforms to overhaul the Right to Buy scheme under the Social Housing Bill, currently going through Parliament. The proposed changes to the Right to Buy scheme could cause a rush for tenants to buy their home in the months ahead, so seeking advice would be wise. Potential buyers currently need just three years as a public sector tenant to quality, but this is planned to rise to 10 years under the new reforms. On top of this, to shield housing stock, newly built social homes will be protected from the scheme for 35 years, alongside an exclusion of ‘hard-to-replace’ rural homes and an adjustment to discounts on market value. A third reading of the bill is expected in September, so there is still time for tenants to start the process of buying their home if they are eligible under the Right to Buy rules.
“Overall, the planned reforms and limited housing stock will still mean some tenants are forced to rent privately if they need to settle at a specific location for work or family reasons. Alongside this, those who have saved over recent years and are now finally ready to get a mortgage will be disappointed that mortgage rates have been climbing amid prolonged unrest in the Middle East, adding around £215* a year in mortgage repayments in just one month of volatility. Prospective buyers will be keen to see what might be revealed in the Autumn Budget which could help their homeownership dreams become reality. While the rumour mill may churn over the next 12 weeks, Andy Burnham has recently ‘ruled out’ scrapping a Stamp Duty reform in this year’s Budget.”
*Based on a £250,000 mortgage over 25 years with the Moneyfacts Average New Mortgage Rate up from 5.47% a month ago to 5.59%.
