Auction Bidders Snapping Up Ex-Council Houses - 31/03/10
Former local authority properties can sell for around 70 percent of the cost of similar privately built homes, with savings made when council houses were sold through the Right to Buy scheme being passed on to new buyers.
Specialist property lender Auction Finance Limited has seen a 47 percent increase in the number of council properties it has provided finance for in the past year.
The shortage of new homes and the crippling price of existing ones has resulted in more compact designs, making larger ex-council houses attractive to investors.
Chris Baguley, director at Auction Finance Limited, said:
"You usually get much bigger space for your money making them ideal for families. They generally have thicker walls and lots of natural light and are often in or near desirable areas. The properties are usually well built, having undergone quality control at every stage of the building process and have been well maintained. If you do your research on the area and the value of similar properties, you can pick up some real bargains."
One client of Auction Finance is Happy Homes Investments, a property Investment company set up in the East Midlands by directors Frank Flegg and Brett Plant. Both started out investing in property, concentrating on ex-council homes in and around the Nottingham area.
Brett Plant said:
"We bring new life to ex local authority properties, some of which are very out dated. We choose them because tenants want good sized family homes in areas close to their relations, with all the amenities they need - shops, schools and good transport links. These properties can offer this and are therefore in high demand."
