Right to Buy sales soar past two million as housing crisis continues

Homes sold under Right to Buy have soared in the past year, despite government proposal for reforms.

Government data reveals 14,275 council homes were sold under the Right to Buy scheme in England during 2025-26, an increase of 90% compared to 2024-25.

Under the new reforms, the minimum eligibility period would increase from three to 10 years before tenants can apply to buy their home.

Discount rules would also be amended, with discounts starting at 5% of the property value and increasing by 1% each year up to a maximum of 15% of the property value or the cash cap, whichever is lower.

Dilemma for the housing market

The flagship policy, introduced by Prime Minister Margaret Thatcher in the 1980s, was designed to give council tenants in England and Wales the right to purchase their homes from local authorities.

Since the start of Right to Buy, there have been more than two million sales to tenants.

Rachel Springall, finance Expert at Moneyfactscompare.co.uk, explains the huge amount homes sold does create a challenge for the housing market.

She said: “The short supply of affordable housing makes the Right to Buy scheme highly attractive for aspiring homeowners, giving them a chance to buy the home they already live in at a discounted price.

“More than two million homes have now been sold under the scheme since it was launched in 1980 under the Housing Act, showing its popularity among those who perhaps could not afford a property for sale on the open market.

“However, the amount of homes sold under the scheme does create a dilemma for the wider housing market, as social housing stock needs to be replaced.

“Tackling the provision of social housing was part of the first official speech from the new Prime Minister, Andy Burnham, stating “we will build more council homes”. While this comment is positive, the scale and pace to achieve significant numbers of new dwellings has to be bold to cater to high demand.

“A study from the Resolution Foundation revealed that 1.3 million households are on local authority housing waiting lists, the highest number since 2014, plus, there is a near-record high of households living in temporary accommodation.”

Tenants forced to rent privately

Ms Springall added despite government proposals, tenants could still be driven to the private rented sector.

She said: “Overall, the planned reforms and limited housing stock will still mean some tenants are forced to rent privately if they need to settle at a specific location for work or family reasons.

“Alongside this, those who have saved over recent years and are now finally ready to get a mortgage will be disappointed that mortgage rates have been climbing amid prolonged unrest in the Middle East, adding around £215 a year in mortgage repayments in just one month of volatility. Prospective buyers will be keen to see what might be revealed in the Autumn Budget which could help their homeownership dreams become reality.

“While the rumour mill may churn over the next 12 weeks, Andy Burnham has recently ‘ruled out’ scrapping a Stamp Duty reform in this year’s Budget.”