Council extends its home purchase scheme to landlords

Council extends its home purchase scheme to landlords

10:02 AM, 8th September 2022, About 4 weeks ago 12

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A Scottish council says it will, for the first time, consider buying homes from private landlords and allow the tenant to remain in the property as a council tenant.

This will, the council says, help prevent homelessness and increase the council’s housing stock.

The scheme might appeal to landlords in the area after the Scottish Government announced this week that it was imposing a rent freeze on private and social homes – and introducing a moratorium on evictions over the winter

Landlords who are thinking of selling

The move is being made by North Lanarkshire Council who point out that the benefits of their open market purchase scheme to landlords who are thinking of selling include:

  • No estate agency fees
  • No home reports being required
  • No chain of sellers
  • No viewers.

The scheme, which has delivered nearly 600 additional council homes for rent since April 2018, is supported by the Scottish Government.

It allows the council to purchase properties that are for sale on the open market – many of which, they say, were former council houses previously purchased under the Right to Buy scheme.

Enables the council to buy homes from private landlords

The latest extension enables the council to buy 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 the tenant to remain in their home as tenants.

Councillor Heather Brannan-McVey, the convener of housing said: “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.”

‘Lots of benefits to potential sellers’

She added: “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.”



Comments

DSR

10:28 AM, 8th September 2022, About 4 weeks ago

bet they wont step in right now and offer to buy properties with benefit tenants already firmly planted as a result of the rent freeze and eviction embargo....

Luke P

10:50 AM, 8th September 2022, About 4 weeks ago

Does the rent freeze even apply to council properties/rents??

Robert M View Profile

11:12 AM, 8th September 2022, About 4 weeks ago

Is this really a change? Surely there was (is) nothing prohibiting councils from buying properties on the open market from landlords or anyone else? This could be with tenants in situ, or with vacant possession, There are no financial or legal reasons (as far as I know) why they could not do this previously. The same applies to housing associations and other social housing providers, so there is no change.

There's nothing new in this announcement, UNLESS, they are buying from distressed owner occupiers on a "Sale And Rent Back" (SARB) scheme, but these were pretty much outlawed (regulated out of existence) around 15 years ago and I don't think anyone offers these now.

Luke P

11:17 AM, 8th September 2022, About 4 weeks ago

Reply to the comment left by Robert M at 08/09/2022 - 11:12
I think she's inadvertently revealed their hand that they load up legislation that doesn't apply to them in order that they 'relieve' private LLs of their burden by taking on (and therefore losing much of the legislation causing private LLs grief) the property themselves.

Old Mrs Landlord

11:19 AM, 8th September 2022, About 4 weeks ago

Reply to the comment left by Luke P at 08/09/2022 - 10:50
Yes.

Old Mrs Landlord

11:20 AM, 8th September 2022, About 4 weeks ago

Reply to the comment left by Luke P at 08/09/2022 - 11:17
The Scottish rent freeze applies to private and social rents.

Mark Alexander - Founder of Property118 View Profile

11:40 AM, 8th September 2022, About 4 weeks ago

I would love to hear from a landlord who has approached this Council and to hear whether they thought the price offered was a fair one.

Darren Peters

11:56 AM, 8th September 2022, About 4 weeks ago

I wonder why this council doesn’t just pop down to the estate agent or auction house and pick up properties there. I mean it’s not like landlords actually do any work (sarc) to make their properties safe and lettable.

Or is it a carrot and stick takeover? We’ll make it impossible/miserable to run your business but we’ll offer to take all the pain away by carpet bagging you.

Ian Narbeth View Profile

12:47 PM, 8th September 2022, About 4 weeks ago

If a property is occupied by a tenant it makes no difference to the homelessness statistics who owns it.

It is only when the private landlord is driven out of the market by excessive regulation so that he keeps the property vacant that there is a problem.

The root cause of homelessness is not enough houses and too much cost piled onto renting so that tenants cannot afford it.

Judith Wordsworth

23:04 PM, 8th September 2022, About 4 weeks ago

Brilliant idea. Saves serving a S21 and paying estate agents.
I sold off one of my BTL to the local council. No estate agent fees, in house solicitor, simultaneous exchange and completion. Would have been even better and quicker not to have had to serve a S21. And got paid market price.

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