Right to Buy vs Right to Acquire
Right to Buy (Housing Act 1985 Part V) allows eligible council tenants to purchase their home at a substantial discount. Right to Acquire (Housing and Regeneration Act 2008 s.180) gives housing association tenants a similar but more limited right with a smaller statutory discount.
Overview
Two statutory schemes give social housing tenants the right to purchase their home at a discount: Right to Buy and Right to Acquire. Right to Buy, governed by the Housing Act 1985 Part V, applies to secure tenants of local authorities and certain other public sector landlords. It offers the largest discounts — up to £102,400 in England (or £136,400 in London boroughs) as of 2024, subject to a percentage cap — and is the older and more widely used scheme. Right to Acquire, established under the Housing Act 1996 and now governed by the Housing and Regeneration Act 2008 s.180 and related regulations, applies to assured tenants of registered providers of social housing (housing associations) whose homes were built or acquired with public funding after 1 April 1997. The discount under Right to Acquire is much smaller — between £9,000 and £16,000 depending on location — and the scheme excludes homes in areas of high housing demand designated by the Secretary of State. Both schemes require a minimum qualifying tenancy period (currently three years), and landlords have limited grounds to refuse or defer a sale.
Side-by-Side Comparison
Right to Buy
Pros
- Very large maximum discount — up to £102,400 (£136,400 in London), giving significant equity from day one
- Applies to a broad range of local authority housing stock including houses and most flats
- Strong statutory entitlement — landlord can only refuse on limited statutory grounds (HA 1985 s.121)
- Preserved Right to Buy available for some tenants who transferred to housing associations when their stock was transferred
Cons
- Repayment obligation if the property is resold within five years — a sliding-scale proportion of the discount must be repaid (HA 1985 s.155)
- First refusal right for the landlord if you wish to sell within ten years (HA 1985 s.156A) — must offer at market value
- Not available for all property types — excluded categories include some sheltered housing, homes due for demolition, and homes let by housing associations without Preserved Right to Buy
Best For
Local authority secure tenants who have lived in the same property or held a public sector tenancy for at least three years and wish to purchase at the largest available statutory discount.
Right to Acquire
Pros
- Provides a statutory right to purchase for housing association tenants who do not have Preserved Right to Buy
- Landlord has limited grounds for refusal — must follow a statutory timetable similar to Right to Buy
- Same three-year qualifying period as Right to Buy — relatively accessible to long-standing tenants
- Portable right — if the landlord offers a suitable alternative property in lieu, the discount can be applied to that property instead
Cons
- Discount is very small compared to Right to Buy — maximum £9,000–£16,000 depending on area
- Excludes many housing association properties — only homes built or acquired with public funding after 1 April 1997 qualify
- Certain areas are designated as excluded (high demand rural areas) — tenants in those areas have no Right to Acquire
- Same five-year repayment obligation on resale applies as with Right to Buy
Best For
Housing association assured tenants living in eligible post-1997 publicly funded properties who have held a social housing tenancy for at least three years and want to access a statutory purchase right, even though the discount is modest.
Key Differences
Our Recommendation
Local authority tenants should first check whether they qualify for Right to Buy, which offers by far the larger discount. Housing association tenants should check whether their property qualifies for Right to Acquire (post-1997 public funding and not in an excluded area). Those who moved from a local authority landlord via a large-scale voluntary transfer before 2012 may have Preserved Right to Buy, which mirrors the original Right to Buy terms. In all cases, independent legal advice and a mortgage-in-principle should be obtained before submitting an application, and the five-year repayment condition should be factored into any long-term plans.