The scheme initially only applied to council properties, but now housing association tenants across 23 local authorities will be eligible, as well as tenants who have lived in the property for 10 years or more.

The announcement is part of an increased effort to serve council and housing associations tenants by allocating in excess of £100m of funds for lending to these customers.

The lender recently increased its funding capacity by closing a £375m bond issuance.

Together has identified key regions where it believes these products will be most desired, which include London, Bristol, Birmingham, Liverpool, Manchester, Newcastle and Sheffield.

Pete Ball, chief executive of retail division at Together, commented: “The Right to Buy scheme gives council and some housing association tenants the chance of a lifetime – to buy their own home.

“The discounts available to tenants can be substantial, but aside from the huge benefit in terms of the long-term investment and potential gain, in many cases we’ve found that the loan repayments are actually less than the previous rent, making the customer immediately better off.

“We are specialists in this market and offer a range of products to suit different needs. We will look at funding properties that many lenders wouldn’t consider; such as high-rise flats, and we’ll also work with those who have a less-than-perfect credit history.

“This is very much our niche – providing a service for a market that is being underserved by other lenders, and adopting a commonsense approach, while always ensuring our customers’ loans are affordable.”