Can I Buy My Council House If I’m on Benefits?

If you live in a council house and receive benefits, you might be wondering whether you can still buy your home under the Right to Buy scheme. The short answer is yes — being on benefits doesn’t automatically stop you from buying your council property. However, there are a few important things you need to consider before taking that step.

What Is the Right to Buy?

Right to Buy is a government scheme that allows most council tenants to purchase their home at a discounted price. The scheme has been around since the 1980s and has helped millions of people in England become homeowners. In Scotland and Wales, however, Right to Buy has been scrapped, so this guide mainly applies to England.

Can I Apply for Right to Buy If I’m on Benefits?

Yes, you can. Your eligibility for the Right to Buy scheme doesn’t depend on whether you’re working, unemployed, or receiving benefits. What matters is:

• You’ve been a council or public sector tenant for at least 3 years (not necessarily all in one go)
• The property is your only or main home
• The property is self-contained (you don’t share facilities like a kitchen or bathroom with other households)
• You don’t have serious legal issues with your landlord (like eviction notices)
• So, being on benefits doesn’t disqualify you — but it’s only part of the picture.

The Big Question: Can You Get a Mortgage?

Here’s where things can get tricky. Even though you’re allowed to buy your council house while on benefits, you still need to pay for it — either outright or with a mortgage.

Getting a mortgage while on benefits is possible, but it’s not always straightforward. Lenders need to be confident you can afford the repayments, and they’ll look at all your income sources. Some types of benefits — like Disability Living

Allowance (DLA), Personal Independence Payment (PIP), or Universal Credit — might be accepted as income by certain mortgage lenders. Others may not.

That said, if you have savings, a part-time job, or someone else willing to apply with you (like a family member), that can help strengthen your application.

Can I Buy with Someone Else?

Yes, you can apply for Right to Buy with up to three family members who’ve lived with you for the past 12 months — even if they’re not named on the tenancy. This could help you qualify for a mortgage more easily, especially if one of them is in work.

How Much Is the Discount?

Under the current Right to Buy rules for applications submitted from 21 November 2024 onwards, the discount structure is as follows:

• Houses: You start with a 35% discount after 3–5 years as a secure public-sector tenant. After this, it increases by 1% for each additional year, up to a maximum of 60% of the property value.
• Flats: You begin with a 50% discount after 3–5 years. Then it increases by 2% per extra year, capping at 70%.
• However, the actual discount you receive may be lower if you hit the regional cash cap first. As of late 2024, these caps range between £16,000 and £38,000, depending on your location.

In practice, this means:

If you qualify for a 60% discount on a house but exceed the regional cash cap, your discount will be limited to the cap.
The percentage discount is calculated first; the final sum you receive is whichever is lower—that or the cash cap.

This tiered system ensures fairness: longer-standing tenants receive greater savings, but the cap prevents excessively low sale prices in high-value areas.

What Are the Risks?

Buying your council home is a big decision. Here are a few things to think about:

• Maintenance costs: Once you own the home, you’ll be responsible for repairs and upkeep.
• Service charges: If it’s a flat, you may face hefty charges from the council for communal repairs.
• Losing benefits: If you own a home and later need help, it could affect your entitlement to certain means-tested benefits.
• Selling restrictions: If you sell within five years, you may have to repay some or all of the discount.

Should You Get Advice?

Absolutely. It’s a good idea to speak to a financial adviser or a mortgage broker, especially one who understands Right to Buy and works with people on benefits. They can help you explore your mortgage options and figure out whether buying makes financial sense for you.

You should also check out your local council’s website, as they’ll have specific details about applying in your area.

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