Right to Acquire Mortgage

The Right to Acquire scheme allows eligible housing association tenants in England to buy their home at a discount. It is the housing association equivalent of the Right to Buy scheme that applies to council tenants. This page explains how the scheme works, what discounts are available, and how to get a mortgage to fund your purchase.

What Is Right to Acquire?

Right to Acquire is a government scheme that gives qualifying housing association tenants the right to purchase their home at a discount below market value. The discount is a fixed cash amount rather than a percentage of the property value, and it ranges from 9,000 to 16,000 depending on which region of England you live in.

The scheme was introduced to give housing association tenants a route to homeownership similar to what council tenants have through Right to Buy, but with smaller discounts and different eligibility rules.

Eligibility Requirements

To qualify for Right to Acquire, you must meet all of the following conditions:

• You have been a public sector tenant for at least 3 years. This does not have to be with your current landlord; time spent as a council tenant, housing association tenant, or tenant of other public sector bodies (such as NHS trusts or the armed services) counts towards the qualifying period.
• Your landlord is a housing association registered with the Regulator of Social Housing.
• The property was either built or purchased by the housing association using Social Housing Grant funding after 31 March 1997, or it was transferred from a local council to the housing association after that date.
• The property is self contained and is your only or main home.
• You are not subject to a court order for possession or eviction.
• You are not bankrupt or have significant outstanding debts that would prevent the purchase.

Joint applications are allowed. You can apply with someone who shares your tenancy or with up to three family members who have lived with you for at least 12 months.

How It Differs from Right to Buy

Right to Buy and Right to Acquire are separate schemes with important differences:

• Landlord type. Right to Buy is for council tenants. Right to Acquire is for housing association tenants.
• Discount structure. Right to Buy offers percentage based discounts that can be worth tens of thousands of pounds (up to 38,000 outside London since November 2024). Right to Acquire offers smaller fixed cash discounts of 9,000 to 16,000.
• Qualifying period. Right to Buy now requires 10 years as a tenant (increased from 3 years in November 2024). Right to Acquire still requires 3 years.
• Property eligibility. Right to Acquire only applies to properties built or acquired with Social Housing Grant after March 1997, or transferred from a council after that date.

If you are a council tenant, you cannot use Right to Acquire. You would use Right to Buy instead.

Discount Amounts by Region

The discount you receive depends on where your property is located in England. Amounts range from 9,000 in some areas to 16,000 in others. The government publishes a full table of discounts broken down by local authority area, available on the GOV.UK website.

If you have previously used the Right to Acquire or Right to Buy scheme, your discount may be reduced.

Can You Use the Discount as a Deposit?

Yes. Many lenders will accept the Right to Acquire discount as your deposit, meaning you may not need to save a separate cash deposit. If the discount covers enough of the purchase price to meet the lender’s loan to value requirements, you can proceed without additional savings.

For example, if the property is valued at 120,000 and you receive a 16,000 discount, you are buying at 104,000. The 16,000 discount represents approximately 13% of the market value, which exceeds the 5% to 10% deposit most lenders require. Some lenders may still ask for a small cash contribution towards fees and legal costs.

Which Lenders Accept Right to Acquire?

Not all lenders are familiar with the Right to Acquire scheme, and some do not accept ex local authority or housing association properties. However, a number of high street and specialist lenders do offer mortgages for Right to Acquire purchases. Key considerations include:

• The lender must accept the discount as the deposit (or part of it).
• Some lenders have minimum property values or specific criteria for ex social housing.
• A broker can identify which lenders are currently active in this area and which offer the best rates for your situation.

Deposit Requirements

Because the discount acts as your deposit, the actual cash outlay can be minimal. You will still need to budget for:

• Solicitor’s fees (typically 1,000 to 2,000).
• Survey or valuation fees (some lenders include a free valuation).
• Any moving costs.

If the discount does not cover enough of the purchase price to meet the lender’s loan to value threshold, you may need a small additional deposit. This depends on the property value and the discount amount for your region.

The Application Process

The Right to Acquire process follows a set timeline:

1. Submit your application. Complete the Right to Acquire application form (known as the RTA1) and send it to your housing association landlord.
2. Landlord responds. Your landlord must reply within 4 weeks confirming whether you have the right to acquire. If they have been your landlord for less than 3 years, they have 8 weeks to respond.
3. Formal offer. If approved, your landlord must send you a formal offer within 8 weeks for a freehold property or 12 weeks for a leasehold property. The offer will include the market value, your discount, and the purchase price.
4. Accept or decline. You have 12 weeks to confirm that you want to proceed with the purchase.
5. Arrange your mortgage. Once you have accepted the offer, you arrange your mortgage, instruct a solicitor, and complete the purchase.

If you do not respond to the offer, your landlord will send reminder letters giving you 28 days to reply before the application is treated as withdrawn.

Resale Rules and Discount Repayment

If you sell the property within 5 years of buying it, you must repay some or all of the discount:

• Year 1: repay 100% of the discount.
• Year 2: repay 80% of the discount.
• Year 3: repay 60% of the discount.
• Year 4: repay 40% of the discount.
• Year 5: repay 20% of the discount.

After 5 years, no repayment is required. However, if you sell within 10 years of purchase, you must first offer the property to your former landlord at full market value before selling on the open market.

Frequently Asked Questions

Can I use Right to Acquire if I have bad credit?

The Right to Acquire scheme itself does not check your credit history; it is a right based on your tenancy. However, you will still need to pass a mortgage lender’s credit checks. If you have adverse credit, specialist lenders may be able to help, though rates may be higher.

What if my landlord refuses my application?

Your landlord can only refuse if you do not meet the eligibility criteria. If you believe you have been wrongly refused, you can contact the Regulator of Social Housing or seek legal advice.

Can I make improvements before buying?

If you have made improvements to the property at your own expense during your tenancy, these should not increase the valuation used for the Right to Acquire purchase price. Make sure your solicitor raises this during the process.

Is Right to Acquire available in Scotland or Wales?

No. Right to Acquire applies in England only. Scotland ended its equivalent scheme (Right to Buy) in 2016. Wales ended Right to Buy in 2019. Housing association tenants in Scotland and Wales do not currently have a comparable purchase scheme.

Do I need to pay Stamp Duty?

You pay Stamp Duty Land Tax based on the discounted purchase price, not the market value. If the purchase price falls below the SDLT threshold, you may pay no Stamp Duty at all. First time buyers may also benefit from additional relief.

Related pages: First Time Buyer Mortgages | Right to Buy Mortgage

Speak to a Mortgage Adviser

If you have questions or want to discuss your options, book a free discovery call below.

Book a Free Discovery Call

---

Your home may be repossessed if you don’t keep up repayments on your mortgage.

Knox Mortgages is a trading style of Fort Advice Bureau which is regulated and authorised by the FCA to conduct Mortgage and Protection business, FRN: 972730