Buying an Ex Council House: Pros and Cons

buying an ex council house: pros and cons

Covid-19 has made it even harder for property investors and first-time buyers looking to get on the property ladder. Rising property prices, interest rates, changes in lending policies and a demand for bigger deposits, has resulted in an increase in the number of people opting for ex-council houses for sale. Not sure if this may be the right option for you? Read on as we explore the pros and cons of buying an ex council house. 

 

Pros of buying an ex council house

 

Value for money

One of the biggest pros of buying an ex council house is that they tend to be much cheaper in comparison to other similar-sized properties. Ex council houses for sale can cost as little as £50, 000, depending on the location. Plus, if you are already a tenant of a council house or housing association, The Right to Buy  policy, introduced in the 1980s, will give you the legal right to buy, at a large discount.

 

Space

Ex council houses were originally built for families and so, they generally tend to be well-built and more spacious. This often means that the houses are also well-maintained in comparison to private homes in similar locations as they were managed by the council.

 

Cons of buying an ex council house

 

Reservation from lenders

One of the main cons of buying ex council houses is that some mortgage lenders may not be willing to lend on ex council houses for sale. This ultimately limits your choices and, in some cases, means that lenders may impose extra restrictions or a lower loan-to-value.

 

Stigma

There is no denying that there is often stigma around ex-council houses for sale. This can often cause complications post-sale. For example,  you may find that it is harder to sell the property on if you wish to do so in the future. Also, you’ll be unlikely to see the same house price inflation (assuming prices keep rising) as other properties in the same area.

We hope this article has been helpful. For more property, business and wealth tips and strategies, take a look at our blog here  

 

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