Letting an ex-council home

According to research by the GMB Union, 40% of ex-council properties in the London Borough of Wandsworth are now owned by private landlords. Figures for the rest of the country are likely to be similar, especially in urban areas.

Regardless of your opinion on whether those homes should have been sold or not, they are now private housing. Inevitably, over the years, many of these homes have made their way in the private rented sector. If you’re thinking of letting an ex-council property, here’s what you need to know:

Leasehold Flats

If your property is a leasehold flat, then your freeholder will be the local council. This has both advantages and disadvantages. The buying power of most councils and the fact that they are non-profit making means that maintenance costs are usually kept low. Getting non-urgent repairs done can take time, though. Also beware being hit with unexpected big bills. Councils are not allowed to build up a sinking fund for maintenance. That means that if the windows or roof need replacing, you’ll be expected to pay your share. Bills can run into several (or even tens of) thousands, so it’s a good idea to make sure you have some savings. Landlords insurance can often help to cover these costs too.

Checking Rent Rates

Ex-council homes are often in less desirable areas. Check rents in the area before you buy, as they are likely to be lower than for similar properties elsewhere. On the plus side, the cost of buying is usually lower, meaning lower mortgage payments. Ex-council properties on edge-of-town estates can be harder to let than those nearer town centres, so do your research. Families looking for more space will often be willing to rent in these areas. In cities where there is an out-of-town university campus, many ex-council homes are let to students.

Low-Rise Blocks

Look for houses and properties in low-rise blocks. Council homes built pre-1960s are usually very well-built, and may yet stand the test of time better than today’s new-builds. Those built in the mid-60s and 70s are often not such good quality.