Useful next calculations
Rates and sources
SDLT/LTT/LBTT bands vary between England, Wales, Scotland and Northern Ireland. Use the appropriate calculator.
Source: HMRC / Welsh Revenue / Revenue Scotland. Check the linked guidance and any live quote before acting.
When to use this calculator
- Before buying, renting, refinancing or reviewing a property investment.
- When you want to compare cash flow, tax, yield or ownership costs.
- When you need a fast estimate before speaking to an agent, lender or adviser.
- When you want to see how a rate or price change moves the result.
A worked example
These are the example figures the calculator opens with.
| Input | Value |
|---|---|
| Property Market Value (£) | £200,000 |
| Years as Public Sector Tenant | 5 |
| Property Type | House |
For those figures the calculator returns:
- Purchase price: £126,000.00
- Discount amount: £74,000.00
- Discount rate: 37.00%
- Discount % of value: 37.00%
Method & assumptions
This calculator applies the Right to Buy discount rules for England as updated for 2026/27. For houses, the minimum qualifying tenancy is three years, with a starting discount of 35% rising by 1 percentage point for each complete year beyond three, subject to a maximum discount rate of 70% and a cash cap of £102,400. For flats and maisonettes, the discount begins at 50% after five qualifying years and climbs by 2 percentage points per additional year, subject to the same 70% rate ceiling and £102,400 cash cap. The calculator applies whichever limit — the percentage or the cash cap — produces the smaller discount, in line with government rules.
The resulting purchase price is the open market value minus the capped discount. This is the figure your mortgage lender will use as the agreed purchase price. Note that the cash cap is reviewed periodically and regional variations exist in London, where a higher cap of £136,400 applied in recent years; always confirm the current cap with your landlord or on GOV.UK before relying on these figures for a formal offer.
Common mistakes
- Comparing rent and ownership costs without including taxes, fees and maintenance.
- Using purchase price alone without testing financing or vacancy assumptions.
- Relying on yield or growth in isolation instead of reviewing the full property case.
- Using the wrong national transaction-tax calculator for the purchase location.
What to do next
- Run a second scenario with a higher rate or lower rental yield.
- Compare the result with a buy-versus-rent or mortgage calculator before making an offer.
- Use the matching national transaction-tax calculator for the purchase location.
- Note the key figures to share with your solicitor or lender.