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Council buying a house?

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rachael88
rachael88 Posts: 53 Forumite
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in House buying, renting & selling
I am aware that my local council have viewed a house that i am viewing this Thursday (though it was at least 2 weeks ago). The estate agent has said that if they put an offer in the vendor will accept it as long as it's close to the asking price. When I asked if it was likely the local council would put an offer in as it has been a while she said they could still be thinking of putting an offer in as they do usually take longer.
Does this sound right or is she stretching it and it's likely the local council are out of the picture now?
I know there have been offers on the property which are 'close to the asking price' and the vendor is currently holding them. I cheekily tried asking my local council if they were going to put an offer in but the lady basically said she didn't know and couldn't say even if she did (It was worth a try).
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  • theartfullodger
    theartfullodger Posts: 14,601 Forumite
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    edited 20 August 2018 at 6:02PM
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    Who can say? Council is entitled to offer whatever price they wish, just like any other bidder (within laws and regulations they operate under).

    But they may have been viewing it for some other reason - no planning permission or building regs approval eg for extensions or works or some neighbour complaint.

    When you asked the council about their visit what did they say? You'd have probably got a more helpful reply than on some anonymous forum.
  • rachael88
    rachael88 Posts: 53 Forumite
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    They just said they can't discuss it with me, I was supposed to view the house last Saturday but the estate agent called to rearrange as she didn't have access.
    The first time I called she said the council had viewed it and had first refusal, the next time I spoke to her she said if the council put an offer in and it's massively under the asking price the vendor would turn it down anyway.
    I really like the property and think it's definitely worth the asking price but it has a few quirks that could put other people off. I wouldn't think it was suitable as a council property but then I don't know what the council look for in a property.
  • Comms69
    Comms69 Posts: 14,229 Forumite
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    The council are a tricky one; there’s lots of consideration when spending large sums of money; but once that’s done they can go quickly and have the cash available.
  • Steppy1234
    Steppy1234 Posts: 51 Forumite
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    They are rules when it comes to buying council houses and by the sounds of it, these rules are still in place with this one.

    For the first 5 years of ownership, the house must be sold back to the council with the discount the buyer received (in your case the person who is currently selling the house) going back to the council.

    For the next 5 years after the above, the council get first refusal if the house is to be sold but they have to pay current market value which may differ between what an estate agent values it at and what an independent valuer may come back with. I am unsure who gets the final say on market value.
  • Barny1979
    Barny1979 Posts: 7,921 Forumite
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    Could they be buying the property to allow highway improvements in the future?
  • rachael88
    rachael88 Posts: 53 Forumite
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    Comms69 I figured there was a reason they had first refusal other than the vendor wanting to help them out. I have everything crossed that they have decided it's not suitable or will only put a low offer in as I really want it but trying to not get my hopes up. If I offer the asking price do you think I could attach the condition that it's accepted or declined within a set time? The house has been on the market since the end of May, don't think I could stand waiting weeks to know.
  • Comms69
    Comms69 Posts: 14,229 Forumite
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    rachael88 wrote: »
    Comms69 I figured there was a reason they had first refusal other than the vendor wanting to help them out. I have everything crossed that they have decided it's not suitable or will only put a low offer in as I really want it but trying to not get my hopes up. If I offer the asking price do you think I could attach the condition that it's accepted or declined within a set time? The house has been on the market since the end of May, don't think I could stand waiting weeks to know.

    You can add any condition you want but remember it’s no binding until exchange of contracts.
  • rachael88
    rachael88 Posts: 53 Forumite
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    The house is currently empty but was a HMO so doubt it was a council property within the last 5 years, it needs a bit of work to turn it back to a family home but nothing i'm not willing to do. It is a Victorian terrace in a row of 8 and the other 7 are all family homes, as far as i'm aware there aren't any plans to extend/change the current road lay out in the area and it seems unlikely.
  • csgohan4
    csgohan4 Posts: 10,587 Forumite
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    rachael88 wrote: »
    The house is currently empty but was a HMO so doubt it was a council property within the last 5 years, it needs a bit of work to turn it back to a family home but nothing i'm not willing to do. It is a Victorian terrace in a row of 8 and the other 7 are all family homes, as far as i'm aware there aren't any plans to extend/change the current road lay out in the area and it seems unlikely.



    This is why I hate RTB and those that use it to exploit at the tax payers expense. You don't inherit a house, you earn it through working and not because you live in a council house
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • Norman_Castle
    Norman_Castle Posts: 11,871 Forumite
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    Steppy1234 wrote: »
    They are rules when it comes to buying council houses and by the sounds of it, these rules are still in place with this one.

    For the first 5 years of ownership, the house must be sold back to the council with the discount the buyer received (in your case the person who is currently selling the house) going back to the council.

    For the next 5 years after the above, the council get first refusal if the house is to be sold but they have to pay current market value which may differ between what an estate agent values it at and what an independent valuer may come back with. I am unsure who gets the final say on market value.
    csgohan4 wrote: »
    This is why I hate RTB and those that use it to exploit at the tax payers expense. You don't inherit a house, you earn it through working and not because you live in a council house
    This has nothing to do with rtb. There's a clue in the title "Council buying a house".
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