Ex-Council Flats - Pros and Cons

Lord_Baltimore

A quick search has produced the following list. Any further pros and cons would be appreciated please along with opinions as to whether you would buy an ex-Council flat to let. Cheers!

Pros

• Tend to be more spacious than private property;
• Lower management costs/ground rent;
• Often centrally located with access to good facilities;
• Easy to let;
• If neighbours cause problems, Council will take action;
• Councils are good freeholders and manage buildings efficiently;
• Residents of good Council property tend to have pride in it;
• Yields can be good for buy-to-let landlords.

Cons

• Major maintenance projects can be an unexpected expense;
• Possible higher cost of repairs – no control over who does them;
• There may be unforeseen admin charges for paperwork;
• There may be restrictions on selling;
• Some councils hike charges to subsidise the remaining council-tenanted flats;
• Ex-Council stigma can affect resale values;
• Dodgy tenants;
• Asbestos frequently used in construction – contribution to cost of removal possible;
• Parking restrictions can deter buyers;
• Concrete cancer;
• Not as easy to get mortgages in some cases;
• Property value does not increase much and is first to fall when markets weaken;
• Communal areas – disputes over maintenance can occur where there is a mix of Council and private occupiers.

For those wanting more detail about the issues arising in Tower blocks, this link, provided by forum member StumpyPumpy, might be helpful.

lovehackney

That looks pretty comprehensive to me.

Personally, I would only buy an ex council flat to let if a number of the other houses / flats in the estate / building were also ex-council. Otherwise I would be concerned about the tenants of the other houses, and also the tenants I would be likely to attract.

Errata

Depends on where the council flat is. One in a large block in London has just sold for a million quid.

PlutoinCapricorn

You do have some say in the costs of major works: the residents in my block check everything and have questioned some proposed charges.

GwylimT

Our flat is ex-council, the entire block was purchased six years ago and renovated, all they did in reality was decorate each flat in an identical manner and they changed the balcony fronts to glass rather than metal.

Our flat is ground floor with a very large private garden that goes all around it (L shape), we had a sound test before we purchased and the results were good, the only thing we have ever heard from a neighbour is drilling.

We have very large communal gardens, our flat has a private entrance but the way the block was built means communal corridors are very wide, lots of natural light and there are three lifts. It is a fairly small block, three high with three flats on each floor.

Our flat cost more than the average for flats of a similar size in this area, when they do come on the market they sell very quickly. We have solar panels on the roof which mean we don't pay a service charge.

All flats cone with one parking space in an underground car park, there are a number of extra spaces that can be purchased or rented, ground floor flats like mine also have a private driveway so we rarely use our parking space.

We now have a gym and an indoor swimming pool which is shared by a local brand new estate, they have to pay for its upkeep, those in the flats don't yet still get free access.

Lord_Baltimore

PlutoinCapricorn wrote: »

You do have some say in the costs of major works: the residents in my block check everything and have questioned some proposed charges.

But if the freeholder Council decides to go ahead, presumably you are stuck and have to pay your share? And is it widespread practice for the private residents to subsidise the flats still in Council ownership?

GwylimT wrote: »

Our flat is ex-council, the entire block was purchased six years ago and renovated, all they did in reality was decorate each flat in an identical manner and they changed the balcony fronts to glass rather than metal.......

Sounds great!

PlutoinCapricorn

If the best quote has been obtained and the work is essential and not caused by neglect, then yes, we must pay our share.

I am not sure about subsidising tenants: we pay a fixed percentage depending on flat size. Some ex-council flats have increased in value, especially if the owner got them under a right-to-buy arrangement.

Pixie5740

There's no sinking fund so it's just down to luck if you end up being the one paying for major repairs.

Lyncroft

I'm going to look at one in London tomorrow, out of interest as much as anything. One thing I've noticed in London recently is more and more blocks being knocked down which could cause all sorts of issues!

Freecall

Lord_Baltimore wrote: »

And is it widespread practice for the private residents to subsidise the flats still in Council ownership?

How?






567890

Lord_Baltimore

Pixie5740 wrote: »

There's no sinking fund so it's just down to luck if you end up being the one paying for major repairs.

That's the bit that makes me a little nervous. A new roof for the whole block would be a serious financial dent.

Freecall wrote: »

How?
567890

Paying higher management fees and/or funding major projects that Council tenants don't have to contribute to.