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Council to buy homes from landlords and allow tenants to stay

* Angels Media and Landlord Today are deeply saddened by the passing of HM Queen Elizabeth II *

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A council is offering to buy homes from private landlords and allowing the existing tenants to stay in situ.

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North Lanarkshire council in Scotland offers what it calls an open market purchase scheme in a bid to increase its stock of social housing. 

This allows private sellers to avoid estate agency fees, home reports, chains and multiple viewers.

The scheme, which has delivered nearly 600 additional council homes for social rent since April 2018, is supported by the Scottish Government. It enables the council to purchase properties that are for sale on the open market, many of which were former council houses previously purchased under the Right To Buy scheme.

The extension of this scheme, just announced by the council, enables the purchase of homes from private landlords to help prevent homelessness. 

In certain circumstances the council will also purchase properties from owners in blocks of flats, where all the other flats are already owned by the council and allow them to stay in their homes as tenants.

A council spokeswoman says: “This scheme has been really successful in recent years and by expanding it to private landlords, we hope to be able to attract additional sellers and provide more homes for council tenants to rent in our communities.

“The housing market has been difficult over the last few years with the pandemic and cost of living crisis affecting sellers, but we hope that by extending our scheme, we can purchase and deliver more homes in areas where there is demand for that type and size of property.

“There are lots of benefits to potential sellers that can make it much easier for them to sell their home. It also gives us the opportunity to bring empty properties back into use that have been lying empty or derelict.

“The opportunity for sellers in mixed tenure blocks of flats to sell to the council and stay in their home also allows us to progress with common refurbishment works which will benefit all tenants in the block."

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  • George Dawes

    When they move the epc goalposts it’ll be compulsory purchases …

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    And how do you get to that result?

  • George Dawes

    Hi Dave , long time no see , what you been up to ?

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    So does this mean a tenant who is in arrears or even stopped paying altogether , been issued a notice to leave, refuses to leave, causing landlord so much grief and financial difficulty that the landlord wants or needs to sell, can now be rewarded by the council by being able to stay on in that house now as a council tenant?? .

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    So if I understand this proposal… many moons ago the councils sold off our housing stock at a huge discount (loss to the tax payer), now they will buy the very same houses back at full market prices ( loss to the tax payer) 😂😂 . If the councils were private companies they would have gone bust years ago.

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    Back in the 1980s the Council's owned vast amounts of deteriorating houses that they had failed to maintain for decades. A combination of government overspending and high inflation in the 1970s and the ludicrously low rents meant there was no money to do anything more than the most basic emergency repairs.
    Most of the houses bought in the early days of the Right to Buy scheme required huge amounts of work to bring them up to a modern standard. The discounts usually covered the cost of the required upgrades depending on how much work the new owners did themselves and how much they needed contractors for. Some people did better than others in that respect. My RTB had extensive dry rot and had to be completely gutted, a friend's RTB had had virtually nothing done in the 50 years since it was built and needed just about everything doing - replastering, rewiring, new kitchen, new bathroom, new roof, etc. Of course once the houses had been improved they were worth more, just as any other renovation project would be.

     
    George Dawes

    That’s because the public sector rewards incompetence

    The more they spend the more they get next year , the whole system is broke

    Time for ze great reset !

     
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    The selling of Council houses to the long term occupiers in my view was an inspired idea, however the execution of this idea was flawed. Within the contract should have been 'when the property was sold then the discount needs to be paid back to the Council, regardless of a time period'. I understand that this applied for 5 years though was not always enforced. Whatever the condition of the house these houses were sold at a discount, it was done to remove tax burdens from the government but also to give tenants an ability to have a choice of investing in their house and improve living conditions. It went wrong as a lot of these ex-tenants sold, especially around London for huge profit with no re-payment and the Councils instead of building new properties were incompetent. with their windfall and short sighted with their housing needs.

     
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    If council employees worked in the private sector they would have been sacked years ago

     
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    Agreed Jo, I bought one from Norwich City Council 10 yrs ago, built 1953, same tenants throughout , when cracks appeared in internal walls due to a damaged drain the tenants were moved to a house just around the corner, the house then sat empty for 3 yrs until I bought it at auction for £74k, Pipeline Bill then hand dug and replaced the section of drain for less than £500, I carried out the repairs to the house, I have had very happy tenants living there since and no new cracks, the council could easily have repaired the drain when it was first reported to them, just shear incompetence on their part.

     
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    Andy, I agree that RTB was a great idea. Not only did it lessen the burden on the taxpayer but it turned the new homeowner into someone invested in society rather than a dependent on the state. Personally, I think one of the biggest problems we currently have is that of the entitled tenant and those that think that everything should be provided for them.

     
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    You need to ask how can the council afford to buy the properties and keep the tenants when a private landlord is unable to do so? Because the council is being paid a lot more to do so. Another way of putting it is the private rented sector is subsidising housing. Yes the social sector can house everyone but at what cost? Why is it that with Housing everyone focuses on landlords making profits and not on how cost efficient they are compared to social housing?
    Jim Haliburton
    The HMODaddy

  • George Dawes

    They suddenly find lots of money when they need it for their ‘plans’ , oddly enough they never have any for useful stuff like repairing roads etc

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    landlords taxed and regulated out of existence , then councils suddenly have money to buy them has nobody joined up the dots ??
    If you think they will be paying market price you are delusional

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