Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Right to Buy Sales Surge 90% Amid Mortgage Rate and Supply Pressures

Right to Buy sales of council homes increased by 90% in 2025-26 compared to the previous year, according to Mortgage Solutions. However, rising mortgage rates and a shortage of affordable housing are tempering the impact of this surge.

The total number of homes sold under the Right to Buy scheme since its inception in 1980 reached 2,052,813 by 31 March 2026. The scheme remains attractive to aspiring homeowners, particularly those seeking to purchase the homes they already occupy at a discounted price.

Fixed rate mortgages are now averaging between 5% and 6%, which has deterred some first-time buyers. The report notes that those who have saved for a deposit may be disappointed by the recent increase in mortgage rates.

Proposed reforms to the Right to Buy scheme are currently under consideration in Parliament as part of the Social Housing Bill, with a third reading expected in September. The report suggests that these proposed changes could prompt more tenants to begin the process of purchasing their homes if they are eligible under current rules.

The ongoing shortage of affordable housing stock remains a significant concern. The number of homes sold under Right to Buy continues to put pressure on social housing supply, with the need for replacement stock highlighted in the report. Savills estimates that England will build 837,500 homes over the next five years, which is below the government’s annual target of 300,000 completions. Research cited in the report indicates that 1.3 million households are currently on local authority waiting lists.

For letting agents and inventory clerks, these trends may impact the availability of social housing and the flow of properties transitioning from rental to owner-occupation. The ongoing legislative changes and market pressures are likely to remain key factors in the UK property sector.