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

Cost: Purchase at open market value minus the applicable discount. Legal and surveying fees apply. Mortgage required for most buyers.

Time: Landlord must respond to initial application within four weeks; must complete or issue a Section 125 notice within eight weeks (house) or twelve weeks (flat).

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

Cost: Purchase at open market value minus the applicable discount (£9,000–£16,000). Legal and surveying fees apply.

Time: Similar statutory timetable to Right to Buy — landlord must respond within four weeks of application.

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

AspectRight to BuyRight to Acquire

Statutory basisHousing Act 1985 Part VHousing and Regeneration Act 2008 s.180; Housing (Right to Acquire) Regulations 1997

Eligible tenantsSecure tenants of local authorities and qualifying public sector landlordsAssured tenants of registered providers of social housing (housing associations)

Eligible propertiesMost local authority housing stock (some exclusions for sheltered housing, demolition-scheduled properties)Only housing association homes built or purchased with public subsidy after 1 April 1997; designated rural areas excluded

Discount sizeUp to £102,400 (England); £136,400 (London boroughs) — percentage of value based on tenancy lengthFixed at £9,000–£16,000 depending on local authority area — much smaller

Qualifying periodThree years of public sector tenancy (not necessarily the same property)Three years of social housing tenancy with a registered provider

Repayment on resaleSliding scale repayment if sold within five years (HA 1985 s.155)Same five-year sliding scale repayment obligation

Area exclusionsNo area-based exclusion (individual property types may be excluded)Secretary of State can designate rural or high-demand areas where Right to Acquire does not apply

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.

Official Resources

Housing Act 1985 Part V — legislation.gov.uk →Housing and Regeneration Act 2008 s.180 — legislation.gov.uk →GOV.UK: Right to Buy scheme →