Will The Council Buy My House Back: Sell & Buy Back Scheme

Selling a property always seems to be a frustrating, tedious and difficult task. The whole process poses issues, especially when you are needing to sell your property within a certain timeframe. There is no guarantee that traditional methods such as estate agents can find a buyer on the open market within a timescale that suits you.

This already stressful situation can have added pressure applied if the property you are trying to sell is a council house. Within this blog, it will discuss whether you can sell your council property and the procedures that you may need to go through to do so.

Can I sell a council house? 

Unfortunately, there is no straight answer to this question. Whether or not you can sell a council house depends on personal factors such as location and situation.

The first thing you need to do is to check with your local council’s housing department or your equivalent to this. Your local authority will be able to give you a better answer as to where your property stands.

Currently, it is no secret that councils up and down the UK are low on housing stock. Many are keen to have people renting. On top of this, there have also been cuts in funding for many councils.

Due to these cuts, it is hard to estimate how much funding each authority is given. Additionally, it therefore means that policies on properties in different authorities may be slightly different.

As well as local authority funding and spending, there are other factors that need to be considered. Your local area and the type of property you own will impact on whether or not you are able to sell.

Certain councils often look for properties with criteria. For example, within the Halifax borough, there may be a shortage of two-bed properties for the population.

The council may not let you sell a property if it's four-bed due to this criterion. On the other hand, some local councils may be willing to buy your council property back from you.

Can housing associations buy my house?

You should be able to sell your house to a housing association, which in some cases can be seen as the best option due to the shorter timeframes (when compared to estate agents). 

Housing associations will typically buy your house between 7 and 14 days, albeit for below market value. But, they will purchase your house in its current condition without the need for any property renovations. 

Selling your house to a housing association can be a practical and fast solution, especially if you need cash quickly. Motivated to expand their affordable housing stock, housing associations will try to move quickly with your house sale. 

But, housing associations may have less flexibility in price negotiations compared to private buyers because they are non-profit organisations. 

How many years after buying a council house can you sell it?

If you sell your council house within the first five years of buying it, you will need to repay some or all of the discount you received. The exact amount will depend on when you sell and the property’s value. 

But, if you sell your house within ten years, you cannot immediately put the property on the open market. You will first need to offer it back to the council or a housing association. If they decline to purchase it within 8 weeks, you can then sell it to anyone. 

If you bought the house using the Right to Acquire scheme and it’s repossessed within the first five years, you’ll have to repay some or all of the discount.

How much is my council house worth?

You might be wondering whether your council house is worth less than that house across the street that's very similar, but not ex-council.

The reason you might be thinking this is that when purchasing a council house you get a discount on its market value, this is the council's Right To Buy scheme.

If you've been a tenant of a public sector property for between 3-5 years then you'll get a 35% discount, and 1% more for every extra year after that 5.

If it's a flat however, you'll be able to get an even larger discount, which is still subject to the same duration, but it's set at 50% and then 2% for every extra year over the 5.

Essentially the answer is no, your council house will be worth its market value, whatever that is determined to be.

The only exception is that you may have to pay back some of your discount if you sell your home within 5 years of buying it from the council under the Right To Buy scheme.

Can I sell my ex council house back to the council?

If the property you are trying to sell is ex-council then you may be subjected to a buyback condition. This means that you must first offer it to the council or housing association before you take it to the open market.

If you are selling your ex-council house within 10 years of purchase through either the Right-To-Buy scheme or Right-To-Acquire scheme then it will be subject to the right of first refusal.

What this means is that you offer it back to the local housing association or housing department before selling it on.

If you decide to sell within the first five years of purchasing the property, then you will be required to repay some or all of the discount that was given to you.

How much will the council pay for my ex-council property?

If you decide to sell the property back to the council, then they will usually pay you market value for it.

However, this depends upon the area that you are situated and whether or not the council buys property.

Should your property require any renovation or repair work in order to make it suitable for letting, then you may get below market value for it.

How do I offer my house back to the council?

If you are thinking of selling your former council house back to the council, you will need to reach out to your local council’s housing department and inform them of your intention to sell. Inquire about their interest in purchasing the property and whether they are willing to make an offer.

The council will then typically conduct a valuation to determine the current market value of your property. Based on this assessment they will present you with an offer. If you aren’t happy with the initial offer, you can negotiate with the council to reach a mutually agreeable price. It’s helpful to have independent valuations from estate agents to support your position during these negotiations.

Once you and the council agree on a house price, you can proceed with the sale, following the standard conveyancing princess. Remember to involve your solicitor to handle the legal aspects of your house sale. 

Local councils are often keen to increase their housing stock, so they might be more motivated for a house sale then traditional buyers, leading to a faster sale. You also have a guaranteed buyer in the council, which eliminates the uncertainty of finding a buyer on the open market.

Does the council buy private houses?

Selling your house directly to the council is not a common practice unless it's part of a Right to Buy scheme. While councils do actively acquire properties to expand their social housing stock, they usually prioritise larger scale acquisitions like:

• New build developments: Partnering with developers to purchase multiple units within new housing projects.

• Portfolio acquisitions: Purchasing blocks of properties from private landlords or investors.

As a result of bulk buying properties, it may mean that your local council is not motivated to purchase individual properties from private owners. There are some exceptions to this however; the council may consider your property if it is an empty home or part of a Compulsory Purchase Order (CPOs). 

Compulsory Purchase Orders are where the council acquire properties for public use as part of an infrastructure development or regeneration project. 

What is the Right to Buy scheme in housing?

The Right to Buy scheme means eligible council tenants in England can purchase their homes at a significant discount from the market price. The discount amount depends on various factors, including:

• Length of tenancy: The longer you’ve been a public sector tenant (council or housing association), the greater your discount.

• Property type: Discounts differ for houses and flats.

• Property value: The maximum discount is capped at £102,400 in England (or £136,400 in London boroughs), but it may be lower depending on your property’s value. 

Here is the Right to Buy discount structure:

If you’re buying with someone else, the discount is based on the longest tenancy period among the buyers. And, if you’ve previously used the Right to Buy scheme, you’ll receive a smaller discount. 

Furthermore, your discount may also be reduced if your landlord has invested in your property within the last 10 to 15 years. Or, if you’re buying under the Preserved Right to Buy scheme and the property was acquired by your landlord after April 2nd, 2012. 

The Right to Buy scheme offers an opportunity for long-term council tenants to step onto the property ladder at a more affordable price. If you’re eligible, this scheme could be your pathway to homeownership.

Can you appeal a Right to Buy decision?

If your Right to Buy application is denied or you disagree with certain aspects of the decision, there are a few avenues for appeal:

Internal review: 

Start by contacting your council directly to request an internal review. This usually involves submitting a written appeal and potentially attending an interview to explain your concerns. Check your council’s website for their specifical procedures. 

Local Government & Social Care Ombudsman: 

If the internal review doesn’t resolve the issue to your satisfaction, you can lodge a formal complaint with the Local Government & Social Care Ombudsman. They investigate complaints about administrative errors, such as:

• Incorrect advice provided by the council on Right to Buy.

• Mistakes in assessing your eligibility.

• Failure to disclose essential information.

The Ombudsman has the authority to recommend corrective action, financial compensation for losses, or even adjustments to the discount repayment period if they find the council at fault. 

District Valuer (Valuation Appeal):

If your Right to Buy application is approved but you disagree with the council’s valuation of your property, you can appeal to the district valuer. This independent professional will reassess the property’s value and their decision is final. You must submit your appeal within 12 weeks of receiving the council’s Offer Notice. 

Do councils ever buy back houses?

If you own a former council house that was brought under the Right to Buy scheme, the council may be inclined to buy it back. However, they are not obligated to do so and have the first right to refusal. 

As spoken about previously, if you sell your house within five years of purchase, you’ll have to repay a portion or all of the discount you received, but this repayment amount decreases over time:

• Within the first year: You will pay the full amount.

• Within two years: You will need to repay 80% of the discounted amount.

• Within three years: 60%.

• Within four years: 40%. 

• Within five years: 20%.

And, while you will save on estate agent fees, you will still need to cover legal fees and disbursements. The council will also require a professional RICS survey which you will be required to cover. 

Can I refuse an offer from the council?

When your council (landlord) approves your Right to Buy application, they will send you a formal offer detailing a breakdown of the house the proposed purchase price was calculated, considering the property’s market value and your applicable discount, as well as discount details, a property description, service charge estimates for flats & maisonettes, and any known structural defects. 

If you’re happy with the terms, you have 12 weeks to inform the council of your decision to proceed. But, if you disagree with the price or other aspects of the offer, contract the council to discuss your concerns. 

If you believe the market value assessment is too high, you can request an independent valuation from a district valuer within three months of receiving an offer. The valuer’s decision is binding, and you’ll have 12 weeks to either accept their valuation or withdraw from the purchase.

But, you can withdraw from the sale at any time before the completion of the purchase, allowing you to continue renting your home.

What is the Buy Back Scheme in housing?

Sale and Rent Back (SRB) schemes, also known as Buy Back schemes, were once offered as a way for homeowners with financial difficulties to sell their home quickly while remaining as tenants. However, these schemes often came with significant risks. 

SRB companies typically offered homeowners significantly less (65% to 80%) than their home’s market value, resulting in substantial financial loss. Additionally, homeowners lost ownership of their property and became renters, subject to the risk of eviction if the company chose not to renew their lease or if they violated the tenancy agreement.

These schemes also posed potential complications for individuals seeking financial relief. They could hinder eligibility for bankruptcy or debt relief options, and in some cases, impact the ability to claim certain benefits, such as the housing element of Universal Credit. 

While the Financial Conduct Authority (FCA) regulated SRB schemes, numerous investigations revealed widespread non-compliance and questionable practices among some companies offering these schemes. This raised concerns about consumer protection and the overall viability of SRB schemes as reliable solicitation for homeowners in financial distress. 

Is sale and rent back illegal?

Currently, there are no companies officially authorised by the Financial Conduct Authority (FCA) to offer Sale and Rent Back (SRB) schemes in the UK. While the practice itself remains technically legal, it is heavily regulated, and the market for regulated SRB schemes has effectively been suspended due to a lack of authorised providers.

Therefore, if you come across a company claiming to offer SRB services to the general public, they are likely operating outside of FCA authorisation and regulation. Engaging with such a company leaves you vulnerable to potential risks and without the protection afforded by the FCA or other financial service safeguards. 

If you’re considering an SRB arrangement, it’s curricula to exercise extreme caution and conduct thorough research. Verify the company’s legitimacy and regulatory status by checking the FCA register. Remember that engaging with unauthorised providers could lead to financial loss, legal complications and a lack of recourse if things go wrong.

How do I sell my house to the council?

The UK’s council housing landscape has changed since its inception in the early 20th century. While council house construction peaked in the mid-20th century, a subsequent decline has led to housing shortages in many areas. As a result, some councils are exploring private properties to bolster their housing stock.

One avenue they may pursue is buying back former council properties sold under the “Right to Buy” scheme. If you own a former council house or flat, whether freehold or leasehold, and are considering selling, then follow this step by step process:

1. Obtain valuations (optional):

Research around and get three different estate agent valuations, creating an average of the valuations to give you an honest house valuation. You will also want to instruct a solicitor at this stage. 

2. Contact your local council:

Reach out to your local council’s housing department to inquire about their interest in purchasing your property. If you own a former council house or flat, especially one bought under the Right to Buy scheme, they might be more inclined to consider it. 

3. Prepare your property:

Before any inspection, ensure your home is in the best possible condition by thoroughly cleaning and decluttering each room, opening curtains to maximise natural light and secure any pets. 

For the exterior, you can tidy the garden, repair any broken glass or missing roof tiles and remove weeds. 

4. Council inspection:

If the council expresses interest, they will likely send a representation to inspect your property’s interior and exterior. 

During the property inspection, the housing association representative will look around the property to ensure that everything is in order, and be honest with them from the get-go if there are any defects within the property. 

5. Receive an offer:

After the inspection, the council will present you with an offer based on their valuation of your property. Be prepared for the offer to be below market value due to their social housing goals.

6. Negotiate (optional):

If you’re not satisfied with the initial offer, you can negotiate with the council. It’s helpful to have independent valuations from estate agents to strengthen your negotiation position.

7. Decide on repairs:

Consider whether to fix any major issues before finalising the sale. While repairs can increase your home’s value, they also  require time and investment. Cash house buyers might be an alternative if you prefer to sell “as-is”. 

8. Agree & finalise:

Once you and the council agree on a price, finalise the sale with the help of a solicitor. Be aware of potential Capital Gains Tax (CGT) on any profits and consult a financial adviser to explore potential exemptions or ways to minimise your CGT liability.

What if my local authority will not buy my council house?

If your local authority will not buy your former council house, there are other processes you can go through like selling via auction, via estate agents, and to cash house buyers, but some of these may be lengthy and complicated. 

Bear in mind also, that some of the offer different solutions to selling your home may not give you the full market value.

Councils in general will struggle to pay you the full market value for your property as they simply cannot afford to. You may also still find yourself waiting to sell due to delays as the council will not be able to buy your house quickly. 

Alternatives to selling house to the council 

If selling your house to the council isn’t the best fit for you, several other options are available, each with its own advantages and disadvantages. To determine the most suitable method for you, first clarify your priorities:

• Desired sale price: What’s your target selling price, and are you willing to compromise for a faster sale?

• Affordability of fees: Can you afford to pay estate agent commissions or other selling fees?

• Timeframe: How quickly do you need to sell your property?

Once you’ve identified your top priorities, compare them with the specifics of these common selling methods:

Trying your luck with an auction

Property auctions can be a very viable way to sell your home, but it’s important to be aware of the timelines, costs and potential risks involved. The time between your decision to sell and the auction auction date will vary on the auction house and its schedule. This preparation period can range from a few weeks to several months.

If your property sells at auction, the buyer usually has around 28 days to complete the legal formalities and finalise the purchase. However, some auction houses may negotiate shorter deadlines with buyers. 

Auctioneers charge a commission, usually around 2.5% of the final sale price, deducted directly from the proceeds. It’s worth inquiring about potential discounts or negotiating a lower rate. 

You will need to set a reserve price, the minimum amount you’re willing to accept for your property. If no bids reach this price, the property remains unsold, potentially delaying your sale. 

And, if you only receive a single bid and it matches your reserve price, the property is considered sold. You will be legally obligated to complete the transaction even if you aren’t satisfied with the outcome. 

Selling on your own

Selling your house privately, without the help of an estate agent or auctioneer, can be a lengthy and demanding process. It usually involves:

• Creating and advertising your listing: This includes writing an appealing description, taking high-quality photos and promoting your property on various platforms like Facebook marketplace, Gumtree etc. 

• Scheduling and conducting viewings: You’ll need to be available to show potential buyers around your home at their convenience.

• Negotiating offers: You’ll be responsible for handling negotiations with interested buyers, which can be time consuming and stressful.

Due to these complexities, selling privately can take well over a year, especially if you’re inexperienced in property. It’s generally not recommended unless you have prior experience or have a knowledgeable friend or family member who can assist you free of charge. 

The main advantage of selling privately is the potential cost saving, as you won’t have to pay estate agent fees, and if you choose to do DIY conveyancing, no legal fees too.

However, the process can be overwhelming and time-consuming, potentially outweighing any financial savings and you might end up spending money on marketing and advertising to reach a wider audience. 

Using an estate agent

Selling your house through a traditional estate agent is the most common and established method. 

Estate agents possess in-depth knowledge of the local property market, enabling them to accurately assess your property’s value and target the right buyers. All while handling the marketing efforts, including professional photography, online listings and arranging viewings, ensuring your property reaches a broad audience.

Estate agents are also skilled negotiators, working to secure the best possible price for your home. They manage the administrative aspects of the sale, including the paperwork, legal documentation and communication with potential buyers.

But, estate agents charge a commission, usually 1% to 3% +VAT of your final sale price, which can be a significant expense. The selling method can take months, sometimes over a year, depending on market conditions and buyer interest. 

And, there is little protection for you as buyers can withdraw their offers before contracts are exchanged, leading to delays and the need to restart the selling process. 

Selling to a cash house buyer

Cash house buyers, like The Property Buying Company, offer the best option for homeowners seeking a fast and straightforward sale. These companies possess the financial resources to purchase freehold or leasehold properties of any type, regardless of their age, condition, location or size. 

The most significant advantage is the speed of sale. Cash buyers can often complete the purchase in as little as 7 days as they don’t rely on mortgage approvals. Reputable cash buyers don’t charge commission fees – we even cover all the fees associated with selling like your legal costs.

We are willing to purchase properties with issues, such as structural problems, noisy neighbours, or lack of warranties which may deter traditional buyers. 

Not only this, our selling process is simple and hassle free. It all begins with a free cash offer, followed by one of our Regional Managers visiting your property to provide you with our formal cash offer.

After you accept this offer, we will work directly with your solicitor to complete the house sale and legal process within a few weeks. Here at The Property Buying Company, we can help you sell your ex council home in a timescale to suit you.

We are an alternative to other traditional selling methods. Over our years of trading, we have helped many customers with council houses sell their property in around two to three weeks.

If you sell your property to us, we will help you at every step of the way and as an added bonus we will cover all legal fees for you.

We will only require one quick viewing to make sure that our cash offer is accurate and as we are a genuine cash buyer, once you have accepted our offer that is the amount that you will get in full in your bank!

We are also a member of the National Association of Property Buyers and The Property Ombudsman, allowing you to feel safe in our hands.

So, if you are ready to sell your ex-council property, give us a call or fill in our online form for a free, no-obligation CASH offer which we could have in your bank as soon as you choose…