Right to Buy reforms: further details announced

The government has published further guidance on its proposed reforms to the Right to Buy (RTB), Preserved Right to Buy (PRTB) and Right to Acquire (RTA).

The guidance develops the reforms announced in April 2026, including the longer qualifying period, reduced RTB and PRTB discount structure, and protection for newly built social homes. It also confirms additional eligibility restrictions, exemptions and measures affecting the processing and subsequent resale of properties bought under the schemes.

The reforms are being taken forward through the Social Housing Bill. They are not yet in force and will apply once the bill has completed its parliamentary stages and received royal assent, subject to the final legislation and any commencement provisions.

The government guidance can be viewed here: Right to Buy reforms: information for tenants and Preserved Right to Buy and Right to Acquire reforms: information for tenants.

Changes already introduced

The latest announcement builds on a number of changes already made to RTB:

• maximum cash discounts were reduced in November 2024 to between £16,000 and £38,000, depending on the location of the property;
• the cost floor protection period was extended from 15 to 30 years, which can limit the available discount where the landlord has incurred qualifying expenditure on building, acquiring, repairing or improvement of the property; and
• councils can retain 100% of RTB receipts to support replacement homes and combine those receipts with grant funding.

Reforms announced in April 2026

Longer qualifying period

The minimum qualifying period will increase from 3 to 10 years under RTB, PRTB and RTA. A tenant who has fewer than 10 qualifying years when the new rules take effect will need to complete the balance before becoming eligible.

New discount structure

For both houses and flats bought under RTB or PRTB, discounts will:

• start at 5% of market value after 10 qualifying years;
• increase by 1% for each additional qualifying year; and
• be capped at 15% of market value or the applicable cash discount cap, whichever is lower.

The existing regional cash caps and cost floor rules may therefore further restrict the RTB or PRTB discount available. RTA discounts will not change and will remain between £9,000 and £16,000, depending on location.

35-year exemption for new-build homes

Newly built social homes will not be available to purchase under RTB, PRTB or RTA until 35 years after they were built. The exemption is intended to provide greater protection for recently delivered social housing.

Read our article on these previous announcements here.

Additional measures now confirmed

Rural homes will be excluded

The government had previously indicated that it was reviewing how RTB operated in rural areas. It has now confirmed that RTB and PRTB will not be available for homes in national parks, areas of outstanding natural beauty (AONBs), or designated rural areas. The rural exemption already applies to RTA. The detailed treatment of designated rural areas will need to be considered against the final legislation and supporting regulations.

Council homes let at market rents will be excluded

Council-owned homes let at market rents will be exempt from RTB. This is specific to RTB and does not represent an additional PRTB or RTA exemption. Councils with market-rent portfolios will need to identify which properties fall within the exemption once the final legislative provisions are available.

Existing property owners will be excluded

An applicant will generally be unable to exercise RTB, PRTB or RTA if they, another person exercising the right with them, or in certain circumstances their spouse, civil partner or cohabitee, owns another residential property in the UK or elsewhere. The government guidance identifies an exception where an applicant has had to leave a home because of domestic abuse. The final legislation and guidance should be checked for the precise ownership test and evidence requirements.

Repeat use of RTB will be restricted

A person who has previously purchased under RTB, PRTB or RTA will generally be unable to use any of the schemes again. The government guidance identifies exceptions where the person had to leave the property purchased because of domestic abuse or the breakdown of a marriage or civil partnership.

Longer application timescales

The period for serving the notice confirming or denying an RTB, PRTB or RTA application will increase:

• from four to eight weeks in the usual case; or
• from 8 to 12 weeks where the applicant has a tenancy history with another public sector landlord.

The period for serving the landlord’s offer notice under RTB, PRTB or RTA will increase from 8 to 12 weeks for houses and from 12 to 16 weeks for flats and leasehold houses.

Fraud investigations

The April announcement confirmed that the government was considering measures to address fraud, including cases where vulnerable tenants may be pressured into purchasing. The latest guidance now confirms a proposed power allowing landlords to pause RTB, PRTB and RTA application timescales for up to six months while suspected fraud is investigated. The final legislation and guidance will need to be checked for the threshold, notification requirements and effect of the pause.

Longer discount repayment period

The period during which some or all of the discount may have to be repaid following a resale under RTB, PRTB or RTA will increase from 5 to 10 years. The full discount will be repayable during the first year, reducing by 10% for each additional year. No discount will be repayable after 10 years. The amount payable will be determined under the statutory repayment calculation.

Indefinite right of first refusal

The former landlord’s right of first refusal currently applies where a property bought under RTB, PRTB or RTA is resold within 10 years of the original purchase. Under the reforms, the right will apply indefinitely. The former landlord must therefore be given the opportunity to repurchase whenever the property is subsequently sold, although it will not be required to do so.

Right to Acquire

The government has confirmed that RTA will be amended broadly in line with the RTB reforms. However, the existing RTA discounts of between £9,000 and £16,000, depending on location, will remain unchanged. The rural exemption also already applies to RTA.

Preserved Right to Buy

The latest guidance confirms that the longer qualifying period, new discount structure, 35-year new-build exemption, rural exclusion, restrictions on repeat use and existing property owners, longer processing times, fraud investigation pause, 10-year discount repayment period and indefinite right of first refusal will apply to PRTB. The revised discount structure for PRTB will mirror RTB. Registered providers with transferred stock should review the final legislation, commencement provisions and updated guidance to establish how each measure will apply.

When will the changes take effect?

The further reforms are not yet in force. The government’s November guidance states that, for an application to be considered under the existing rules, the prescribed RTB1 form for RTB or PRTB, or RTA1 form for RTA, must be submitted to the landlord before the Social Housing Bill receives royal assent.

The date of royal assent is currently unknown. The final legislation should be checked to confirm whether all provisions take effect immediately or whether some will require separate commencement regulations.

What does this mean for local authorities and registered providers?

The reforms will substantially narrow eligibility under RTB, PRTB and RTA and reduce the discounts available to many RTB and PRTB applicants. RTA discount levels will remain unchanged. The reforms will also introduce additional checks and longer-term controls over former social housing sold under the schemes. They form part of the government’s stated policy of protecting existing social housing stock and supporting the provision of replacement homes.

Local authorities and registered providers should consider:

• identifying properties potentially covered by the new-build and rural exemptions, and RTB properties covered by the market-rent exemption;
• preparing checks for other residential property ownership and previous RTB purchases;
• reviewing fraud identification and escalation procedures;
• updating RTB, PRTB and RTA policies, tenant guidance, discount calculations and application timescales;
• reviewing standard transfer, lease and title protection provisions;
• preparing systems to monitor the 10-year discount repayment period and indefinite right of first refusal.

Next steps

Further detail will be required once the bill receives royal assent and the supporting regulations and guidance are published. Local authorities and registered providers should continue to process current RTB, PRTB and RTA applications under the existing legislation while preparing their procedures and standard documents for the new regime.

If you would like to discuss how these reforms may affect your stock, RTB, PRTB or RTA procedures or standard sale documentation, please get in touch.