Right to Buy – further reforms announced to safeguard social housing

Following the Right to Buy (RTB) consultation response, the government confirmed on 28 April 2026 that it will bring forward further reforms to the RTB scheme, in addition to the already significant changes announced in October 2024 (explained further here).  

The stated aim is to better protect existing social housing stock, support replacement, and maintain a more limited route into home ownership for long‑standing tenants.

The government announcement can be viewed here.

The changes will be implemented when parliamentary time allows and are expected to also apply to Preserved Right to Buy (PRTB) (although clarification is not yet available on the cost floor period for PRTB).

Key reforms confirmed 

Longer qualifying period 

The government will increase the minimum tenant eligibility period before an application can be made from three years to 10 years. This marks a significant tightening of access to RTB and is intended to ensure that only long‑standing tenants are eligible.

Further reductions to discounts 

The government will amend how RTB discounts are calculated:

• discounts will start at 5% of the property’s market value;
• they will increase by 1% per additional year of tenancy;
• discounts will be capped at 15% of market value or the relevant cash cap, whichever is the lower.

This represents a substantial move away from the historic percentage-based discount model and further limits the financial impact of RTB sales on councils/registered providers (RPs).

35-year exemption for new build homes 

A new and significant protection has been announced in that new build social homes will be exempt from Right to Buy for 35 years from completion. This is designed to prevent the relatively quick loss of newly built stock and give councils/RPs greater confidence that new supply will not be sold shortly after delivery.

Related measures already in place

The above announcement represents the next stage of reform and builds on the RTB changes announced previously, briefly summarised below: 

• lower maximum cash discounts, now ranging from £16,000 to £38,000 depending on location;
• extension of the cost floor period from 15 to 30 years, limiting discounts where councils have invested heavily in building, repairing or maintaining stock(not yet confirmed for PRTB);
• continued ability for councils/RPs to retain 100% of RTB receipts and combine them with grant funding to support replacement homes.

The government has also confirmed it is continuing work on:

• fraud prevention, particularly where vulnerable tenants may be pressured into RTB purchases;
• reviewing how RTB operates in rural areas.

What does this mean for local authorities and registered providers? 

• RTB will become more limited and targeted, both in terms of eligibility and financial impact.
• New build stock will be significantly better protected, reducing the risk of early loss.
• Valuations and discount calculations will need to be approached carefully once the new percentage-based regime is introduced.
• Authorities should expect fewer RTB applications over time, particularly from newer tenants and in higher value areas.
• Further training and support will be required for teams handling RTB applications.

Next steps 

The government has confirmed its intention to legislate for these reforms when parliamentary time allows. Further detail is expected on transitional arrangements and implementation dates.

Given the direction of travel, this announcement is unlikely to represent the final stage of RTB reform, and further changes cannot be ruled out.

If you would like to discuss how these changes may affect your stock, development strategy or RTB policies, or would like support preparing for the new regime, please get in touch.