Ex-council properties acquired under Right to Buy are making their owners a fortune, with many now in the hands of private landlords and others changing hands for high prices in the London market.
As the Government prepares to extend Right to Buy to social housing tenants, a 700 sq ft two-bedroom ex-council flat in South Kensington has been put up for sale at £1.15m – the first time that a former council home has been valued at over £1m.
A council tenant in central London who purchased their home at a discounted £100,000 ten years ago will typically find it is now worth over £600,000.
A one-bedroom ex-council flat in the West End can now fetch £19,200 a year in rent, while a two-bedroom flat can command £28,800 – the attraction for tenants being that this is less than the rent for comparable properties that have always been in the private sector. However, tenants are likely to find ex-council homes that have been well and truly blinged up.
London agent E J Harris said 90% of the ex-council homes in its lettings portfolio have been interior-designed to high specifications.
Managing director Elizabeth Harris said: “These ex-council flats might be located in a local authority apartment block, but step inside and most of the interiors are extremely luxurious and equivalent to anything in the private sector luxury homes market.
“The kitchens are designer and state-of-the-art, the living rooms fitted with LED televisions, the bathrooms beautifully finished and the bedrooms glamorous.
“The owners want to attract affluent private tenants so they ensure that the interiors are extremely stylish and luxurious.”
Under government plans to be confirmed in today’s Queen’s Speech, some 1.3m housing association tenants will be able to buy their homes at discounts, capped at just over £102,700 in London and £77,000 for the rest of England.
In London’s poshest areas, there is a high proportion of social housing: in Mayfair it accounts for 22% of housing stock.
Peter Wetherell, of Mayfair agent Wetherell, said: “When it comes to Mayfair and the wider West End, I don’t think there is any stigma.
“Mayfair is always a good address, regardless of whether it is a private sector, ex-council or shared ownership property.
“In a short time, we will see the emergence of the multi-million pound ex-council property.”
Official overall figures for Right to Buy show that 26,184 ex-council homes have been bought at a discount since 2012. Just 2,712 have been replaced.
Interesting program on Radio 4 last night about the manipulation of Section 106 provision on new development sites.
I can’t work out if government is clueless, corrupt or a unhealthy mix of both.
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Not a question you can easily rummage 4 the answer, Robert – so I guess the third option is the safe bet.
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“London agent E J Harris said 90% of the ex-council homes in its lettings portfolio have been interior-designed to high specifications… the living rooms fitted with LED televisions…”
OH WOW!! You Lahndonahs are reet proper posh, ain’t yas? I’ve seen them in all the swanky shops – Currys and them places. And Tesco. Wish we Northerners could have them.
I’ll bet even yer knives and forks are shiny metal like in posh restaurants like them Little Chefs and that… oh to live with luxury like that.
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Something is wrong with this system, i am all for helping individuals onto the housing ladder but why should they profit so highly?
I have had valuations in the past where they have been given the right to buy and while i am there they very proudly tell me how much they are getting it for and that they will rent it out and then sell it!
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I think at least 80% of them will go out and spend all that money on new kickers and Tv’s, then end up in a council housing again!
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Sounds about right, fall down on your luck and the council hands you everything you will ever need to live rent/council tax free and then give you a very hefty cash bonus by right to buy if you get back on your feet.
And we work because……..
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Right to Buy sickens me right to my core. I work extremely hard paying bills, saving hard to just about get on the property ladder, and yet the tax I pay is used to subsidise someone else buying a property and make huge profits from it. And they call this a fair country. I will never ever vote conservatives purely on this alone. These people already have cheap rent, then we tax payers hand them more of it. Between people who refuse to work, selected immigrants who come over to take our money from a corrupt system and the conservatives, it really makes me ashamed of this country. There is no such thing as fairness, or work hard and get on in life any more.
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I agree completely its one of a very few things that makes my blood boil.
I’ve never been able to wrap my head around how stupid and incredibly unfair it is to people that work
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I couldn’t agree more!
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