The number of council homes sold through Right to Buy increased by 90% during 2025-26 as tenants moved to purchase their properties ahead of proposed changes to the scheme.
Local authorities in England reported 14,275 sales during the financial year, taking the total number of homes sold since Right to Buy launched in 1980 to 2,052,813.
Councils received £1.61bn from eligible sales, an annual increase of 99.6%, with the average receipt per property rising by 5% to £112,900.
However, only 3,452 replacement homes were funded using Right to Buy receipts during the year, 7% fewer than in 2024-25, renewing concerns about the loss of social housing stock.
ELIGIBILITY PERIOD COULD RISE
Proposed reforms contained in the Social Housing Bill would increase the qualifying tenancy period from three years to 10 years.
Newly built social homes would be protected from Right to Buy for 35 years, while hard-to-replace rural properties could be excluded. Discounts against market value would also be adjusted.
The Bill is expected to receive its third reading in September, creating the potential for increased applications from tenants seeking to buy under the existing rules.
Rachel Springall (main picture, inset), Finance Expert at Moneyfactscompare.co.uk, says: “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, 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.”
MORTGAGE COSTS INCREASE
Moneyfacts data shows its average new mortgage rate increased from 5.47% at the beginning of July to 5.59% at the start of August.
The change would add approximately £215 a year to repayments on a typical £250,000 mortgage arranged over 25 years.
Springall warns the combination of higher borrowing costs and impending Right to Buy reforms may make professional mortgage and legal advice particularly important for prospective purchasers.
The figures come as Prime Minister Andy Burnham pledges to build more council homes. However, research cited by Moneyfacts indicates 1.3 million households remain on local authority waiting lists, while the number living in temporary accommodation is close to a record high.
