Changes to Right to Buy discounts at the Autumn Budget

As part of the Autumn Budget, the government announced a number of changes to the Right to Buy scheme. These changes are intended to ensure that the number of social homes in England does not continue to diminish.

The government has since opened a broader consultation on reforms to the Right to Buy and has confirmed that the Right to Buy will not be extended to housing associations.

We welcome the government’s decision to reform the Right to Buy and the confirmation that it will not be extended to housing associations. This is an important step in preventing the further loss of social homes.

The changes announced at the Autumn Budget are that:

• Discounts for purchases through the Right to Buy scheme will revert to pre-2012 levels and will be more reflective of local housing markets.
• There will no longer be a requirement for both local authorities and housing associations to return a proportion of the capital receipt generated by the sale of the home.
• Discounts will no longer be automatically increased annually by CPI, but instead will be subject to review on an ad hoc basis.
• The cost floor period will increase from 15 to 30 years.

These changes came into effect on 21 November 2024 and any applications received on or after that date are subject to the reduced discount level. They apply to properties where housing association tenants have a preserved right to buy arising from a previous stock transfer.

A member briefing on these changes can be found below.