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If you're a council tenant in England, the Right to Buy scheme offers a unique opportunity to purchase your home at a significant discount. With mortgage rates stabilizing and house prices expected to rise in 2025, now could be the best time to take advantage of this scheme. In this blog, we’ll explore why Right to Buy is a great option, the benefits of buying now, and how you can make the most of this opportunity.
What Is Right to Buy?
Right to Buy is a government scheme that allows eligible council tenants to purchase their homes at a discounted price. The discount can be as high as £96,010 (£127,940 in London), depending on how long you've been a tenant.
Who Is Eligible for Right to Buy?
You may qualify if:
- You’ve been a public sector tenant for at least three years (not necessarily consecutive).
- The home is your main residence.
- Your landlord is a council or housing association that took over council properties.
- You don’t have any legal issues, such as bankruptcy, that could prevent a mortgage.
Why Right to Buy in 2025?
1. Mortgage Rates Are Improving
Over the past two years, mortgage rates have been volatile. However, as of 2025, lenders are reducing fixed mortgage rates, making borrowing more affordable. Right to Buy allows you to use your discount as a deposit, meaning you may not need additional savings to secure a mortgage.
2. House Prices Are Expected to Rise
While house prices have remained stable, experts predict that prices will start increasing in late 2025. If you buy now, you can benefit from future property value growth and build long-term wealth.
3. Stop Paying Rent and Build Equity
Renting means paying into your landlord’s pocket each month. Owning your home through Right to Buy allows you to put that money toward your mortgage, helping you build equity and secure your financial future.
4. Interest Rate Cuts Could Be on the Horizon
The Bank of England is expected to lower interest rates later in 2025, which could make mortgage deals even more competitive. Getting on the property ladder now could help you remortgage to a better deal in a few years.
5. Potential Government Changes
Right to Buy has been around since the 1980s, but with ongoing government policy shifts, there’s no guarantee it will remain unchanged forever. Acting now ensures you don’t miss out on the opportunity.
How to Apply for Right to Buy
- Check Eligibility – Use the official Right to Buy eligibility checker.
- Download and Complete the RTB1 Form – Available on the government website.
- Submit the Form to Your Landlord – They have four weeks to respond (or eight weeks if they’ve been your landlord for less than three years).
- Receive Your Offer – If approved, you’ll get a Section 125 notice detailing the price, discount, and property valuation.
- Arrange a Mortgage – Speak to a Right to Buy mortgage advisor to find the best deal.
- Complete the Purchase – With the help of a solicitor, finalize the sale and become a homeowner!
Final Thoughts: Secure Your Future with Right to Buy
Right to Buy in 2025 is a once-in-a-lifetime opportunity to transition from renting to homeownership. With house prices set to rise and mortgage rates improving, now is the perfect time to take advantage of the scheme. Don’t wait—start your Right to Buy journey today!
