Expert Remortgage views & facts

Right to Buy - What Discount Would I Get? - 9 May, 2008

For anyone thinking about the government’s Right to Buy scheme, one of the key questions is: “What discount would I get?”

It depends on where you live, whether you’re living in a house or a flat / maisonette, and how long you’ve been a secure tenant in any council property (not just the one you’re in today).

Maximum discount
There is a maximum discount to which you are entitled, depending on where you live.

• If you live in the South East, the maximum discount is £38,000, but this is reduced to £16,000 if you live in the local authority areas of:
  • Chiltern
  • Epsom & Ewell
  • Hart
  • Oxford
  • Reading
  • Reigate & Banstead
  • Tonbridge & Malling
  • Vale of the White Horse
  • West Berkshire
• If you live in the Eastern Region, the maximum discount is £34,000, but this is reduced to £16,000 if you live in Watford.
• If you live in the South West, the maximum discount is £30,000.
• If you live in the North West or the West Midlands, the maximum discount is £26,000.
• If you live in the East Midlands or Yorkshire and the Humber, the maximum discount is £24,000.
• If you live in the North East, the maximum discount is £22,000.
• If you live in Wales, the maximum discount is £16,000.
• If you live in London, the maximum discount is £16,000, but this goes up to £38,000 if you live in Barking and Dagenham or Havering.

Discount – by qualifying period
Here’s an example of the discount you might receive (subject to the maximum, as detailed above) if your council property is worth £75,000:

However, you may receive a lower discount – or none at all – if your home was only recently built or bought, or if expensive repairs / maintenance have been carried out on it.

More info on Right to Buy mortgages
Pros and cons of home ownership