How Much Discount will I get?

 
You must have been a tenant in qualifying accommodation for a period of 3 years to be able to buy your home. This will entitle you to a basic discount of 35% for houses and 50% for flats. After the initial 5 year qualifying period you get additional discount for each extra year.
 
If you are buying a house, you will get 1% more discount for each extra year up to a limit of 70%. If you are buying a flat, you will get 2% more discount for each extra year up to a limit of 70%.
Subject to the current maximum discount set by National Government.
 
 
 
The table below provides examples of how this might be calculated on a property worth £120,000:
Qualifying Period in Years House % House Discount Flat % Flat Discount

5

 35% £42,000 50% £60,000
10 40% £48,000 60% £72,000
15 45% £54,000 70% Max £84,000
20 50% £60,000 70% Max £84,000
25 55% £66,000 70% Max £84,000
30 60% £72,000 70% Max £84,000
35 65% £78,000 70% Max £84,000
40 70% £84,000 70% Max £84,000

 

Your discount may be reduced by a rule called the "cost floor". If your home has been recently purchased or built, or if money has been spent repairing or maintaining it. Where the cost floor is higher than the sale price or higher than the market value, the discount amount is adjusted. 
* Currently, the cost floor is calculated as the amount of money spent on an individual property in the 10 year period prior to the right to buy application for properties built or acquired prior to 2nd April 2012 or in the 15 year period prior to the right to buy application for properties built or acquired after 2 April 2012.
* From 21st November 2024 the cost floor calculation period will increase to 30 years regardless of when the property was built of acquired.
 
Paying back your discount
You will have to pay back some or all of the discount you received, if you sell your Right to Buy home within 5 years of buying it.
You will have to pay back all of the discount if you sell within the first year. After that, the total amount you pay back reduces to:
  • 80% of the discount in the second year
  • 60% of the discount in the third year
  • 40% of the discount in the fourth year
  • 20% of the discount in the fifth year
The amount you pay back depends on the value of your home when you sell it.
Example You bought your home worth £100,000 and got a 40% discount (£40,000). You then sold your home after 18 months for £120,000.
40% of £120,000 is £48,000. As you are in the second year, you would repay 80% of £48,000 (£38,400).