Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
Right to Buy Council Home Sales Surge in 2025/26
Local authorities in England sold 14,275 council homes under the Right to Buy scheme during 2025/26, representing a 90% increase compared to 2024/25, according to data reported by Moneyfacts.
Receipts from eligible Right to Buy sales reached £1.61 billion in 2025/26, up 99.6% from the previous year. The average receipt per dwelling was £112,900, marking a 5% rise compared to 2024/25.
Impact on Social Housing Stock
The data also shows that 3,452 replacement homes were funded through Right to Buy receipts in 2025/26, a decrease of 7% compared to the previous year. Since the scheme began in 1980, over two million council homes (2,052,813) have been sold to tenants in England as of 31 March 2026.
Market Conditions and Proposed Reforms
Moneyfacts notes that prospective buyers may be concerned about rising mortgage rates, with the average new mortgage rate increasing to 5.59% at the start of August, up from 5.47% a month earlier. This means a typical £250,000 mortgage over 25 years will cost £215 more per year in repayments.
There are currently proposed reforms to the Right to Buy scheme under the Social Housing Bill, which is progressing through Parliament. Planned changes include increasing the qualifying period for tenants from three to ten years, protecting newly built social homes from the scheme for 35 years, excluding certain rural homes, and adjusting discounts on market value. A third reading of the bill is expected in September.
These developments are relevant for letting agents and inventory clerks, as changes to the Right to Buy scheme and the ongoing shortage of social housing may impact demand for private rentals and the management of housing stock.
Source: Mortgage Strategy