London landlords urged to sell homes to councils – not to other investors

London landlords urged to sell homes to councils – not to other investors

11:55 AM, 10th August 2022, About 2 months ago 8

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Sadiq Khan, the mayor of London, has urged landlords who have a former council house they want to sell to offer their property to local councils – rather than selling to other landlords.

Mr Khan has given an update on the Right to Buy-back scheme which was unveiled in July last year in a bid to bring more homes into public ownership.

He added that more small landlords are looking to sell up because of the impact of tax law changes and that it would ‘far better’ for houses to be sold to local councils than to other private landlords.

Spending £152m to buy 1,577 properties

So far, the Right to Buy-back scheme has seen 14 London boroughs spending £152m to buy 1,577 former council homes on the market that have been or will be, converted into affordable homes that will be let at social rent or to homeless households.

This includes two London boroughs that have bought 39 homes for housing Afghan refugees.

It has also been revealed that since 1980, more than 300,000 council homes in London have been sold under the Right to Buy scheme.

Mr Khan said: “For more than 40 years, London’s precious council homes have been disappearing into the private sector, often never to be replaced.

‘Right to Buy-back scheme to return homes to public ownership’

“I am proud that, thanks to my interventions, we have brought council homebuilding back up to levels not seen since the 1970s and I’m hugely encouraged by the enthusiasm I see from boroughs across London for building new council homes and using my Right to Buy-back scheme to return homes to public ownership.”

He added: “These homes were built for the public good and it has been painful to watch them disappear into private portfolios.”

Damien Egan, the mayor of Lewisham, said: “The Right to Buy-back scheme is already making a big difference in Lewisham, with families moving into their new homes.

“Thanks to funding from the Mayor of London, we have been able to bring these homes back into public ownership, helping to house families on our housing waiting list, many of whom have had years waiting in hostels and B&Bs.”



Comments

Susan Robinson View Profile

13:33 PM, 10th August 2022, About 2 months ago

Hoorah to Mr Khan for his aspiration to provide more social housing by re-purchasing former council properties previously sold off with huge discounts to their tenants who have profited. However, I still can't get to grips with the maths quoted in this article "London boroughs spending £152m to buy 1,577 former council homes". Has he a magic formula for purchasing power as by my calculations this equates to less than £97,000 per property - and in London!!! Or is my calculator malfunctioning? Have I missed something within this editorial?

David Judd

15:17 PM, 10th August 2022, About 2 months ago

Tried this, and it seemed pretty straight forward, however they don't give you market value. About 20% less in fact. I pulled out and will rent for a few more years before I sell

David Judd

15:18 PM, 10th August 2022, About 2 months ago

Reply to the comment left by Susan Robinson at 10/08/2022 - 13:33
Hackney council offer me £485k for my property. It was valued at £525, I decided to keep it for a few more years and then sell

Freda Blogs

15:40 PM, 10th August 2022, About 2 months ago

Astonishing narrative in this and other similar stories – council houses were sold off to tenants who first enjoyed subsidised rents, and then benefited from subsidised purchases of their properties, so the people who profited were those eligible tenants who managed to buy their properties at a knockdown price.

Yet Mr Khan says "London's precious council homes have been disappearing into the private sector, often never to be replaced."
Well, whose fault is that? Government for the policy in the first place, Councils' lack of funding/drive/commitment to get new dwellings built (and I speak from experience trying to deliver schemes), and the former tenants who sold their subsidised properties at market value and pocketed the discount and all profit.
Its not the fault of landlords, yet this and similar stories are usually accompanied by the seemingly compulsory dig at the 'greedy/rogue etc' private sector landlords. Why? Must they always vilify those of us in the private sector who are actually providing dwellings for people to live in?
I shouldn’t be surprised to read this nonsense, yet I am frequently disheartened by the constant negative commentary about landlords - and that’s even before we talk about the appalling legislation and the erosion of our financial margins. No wonder we’re all getting fed up and selling.
Sorry about the rant - had to get it out of my system.

TheMaluka View Profile

20:06 PM, 10th August 2022, About 2 months ago

I would never sell to the council, they have never helped me why should I help them?

Judith Wordsworth

22:57 PM, 10th August 2022, About 2 months ago

I bought a previously owned council property, 3rd owner since bought under Right to Buy.
Having decided to start getting out of the PRS I approached the Local Authority. They came and valued it. I took into account the costs of a new kitchen, new bathroom, total redecoration and new carpets as the tenants had not looked after the property plus the cost of the replacement double glazing the LA was intending to do in the next 3 months. The LA offered £15k less than similar on the open market plus no estate agents fees made it a no brainier.
Best thing I ever did and all completed really quickly and with a simultaneous exchange and completion and the property once done up available for a family on the housing list.

David

18:08 PM, 13th August 2022, About 2 months ago

Seems like a policy doomed to failure. Councils buy back the properties for £152m only for the next tenants to buy them at a discount.

Luke P

19:22 PM, 13th August 2022, About 2 months ago

Reply to the comment left by David at 13/08/2022 - 18:08
They’ll give them to Afghan migrants that are refusing properties in Wales/Scotland in the hope of a London house. You or I would be considered intentionally homeless were we to turn down any offer of accommodation…

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