Value difference between ex local authority vs private road

Peony2016

The house we’re looking to purchase is on the market for OIEO £400,000 (semi detached 3 bedroom). Nothing on that street or any of the streets on that private estate have sold in the past year so we don’t have any comparable properties to compare with.

The most comparable property in the area sold in June for £375,000. It is an ex-local authority semi-detached 3 bed of a very similar size but it has a garage although a smaller garden. These properties are 0.2 miles apart (a 2 minute walk to the end of the street).

Our offer of £385,000 has been rejected. The estate agent said you can’t compare ex local authority properties to properties on private estates. I appreciate there’s a slight premium for private roads but how do we judge what is a reasonable price? If both houses were identical what would you say the value difference would be for private vs ex-LA?

RelievedSheff

The house we sold in April was ex local authority. Similar properties on surrounding "private" built estates had a premium of about 25% over the ex local authority properties.

davidmcn

I doubt there's any general rule, it will depend on the local market and how people perceive quality of build, whatever the now typical tenure is, etc.

silvercar

May also depend how private the ex-council road now is.

Peony2016

silvercar wrote: »

May also depend how private the ex-council road now is.

We're fairly certain the ex-council road is completely private ownership now

davidmcn

LD2016 wrote: »

We're fairly certain the ex-council road is completely private ownership now

In which case the fact it was originally developed by the council would seem irrelevant and you're down to other factors.

lookstraightahead

Huge difference in our area. A private two bed terrace is about twice the price of an ex council 3 bed semi.

bouicca21

A lot depends on the nature of the council development. I can think of houses on now private estates that scream out excouncil and are priced accordingly, but I am also aware of some very small council developments that have the look and feel of privately built and there’s virtually no difference there.

cattie

If this is just a house on a road that the council bought as a one off property & then then tenants bought via RTB, then there is no difference in the price compared to a house that was only ever privately owned.

A friend bought such a house years ago via RTB & when they decided to sell it, the price was around the same figure as the rest of the privately owned only houses that had sold in that & surrounding streets.

[Deleted User]

I think it depends on the makeup of the town or city as a whole. The main place I work as ex local authority houses but they are all stuck in one part of the town away from all the private ownership that has sprung up over the last 15 years. The town has expanded a lot and it has meant that the ex locals are very obviously different and separate to the rest of it.
In general, people stay away from them as a lot of them are non standard construction, there is generally a higher level of crime (in this single example i am giving, i dont mean to generalise)

So a 3 bed semi in a ex local area has quite a big price differential than a private owned one. But thats just how this town has grown. Other areas may be a bit more integrated then it doesnt matter.

I have even seen some areas where they are more expensive as the size of a 1960's ex local is massive in comparison to the newer ones, and then the gardens as well, massive on the ex-locals.

Generally I would say there isnt a hard rule, its going to be very localised