The ‘Right
to Buy’ scheme was a policy introduced in 1980 which gave secure council tenants the legal
right to buy the Council home they were living in with huge discounts. The heyday
of Council ‘Right To Buys’ was in the 80’s and 90’s, when 1,719,368 homes in
the country were sold in this manner between October 1980 and April 1998.
However, in 1997, the discount available to tenants of
council houses was reduced and the numbers of properties being bought under the
Right to Buy declined.
So what does this mean for Melton Mowbray homeowners and
landlords? Well quite a lot in fact!
Looking at the figures for our local authority, whilst the
number of ‘Right to Buys’ have dwindled over the last few years to an average
of only 7 ‘Right to Buy’ sales per year, one must look further back in time.
Looking at the overall figures, 1,301 Council properties were bought by council
tenants in the Melton Borough Council area between 1980 and 1998. Big numbers
by any measure and even more important to the whole Melton Mowbray property
market (i.e. every Melton Mowbray homeowner, Melton Mowbray landlord and even Melton
Mowbray aspiring first time buyers) when you consider these 1,301 properties
make up a colossal 8.4% of all the privately owned properties in our area (because in the
local authority area, there are only 15,498 privately
owned properties).
Melton Mowbray first time buyers and landlords can now buy these
ex-council properties as those original 80’s and 90’s tenants (now homeowners) have
more than passed the time of any claw back of the discount they received.
Now let us all be honest, some (not all), but some ex-council properties
lack the vital Kerb appeal that some landlords crave.
Yes, the modern stuff being built in Melton Mowbray is lovely,
but too many landlords purchase buy to let property solely based on where they would
choose to live themselves, instead of choosing with a business head and
choosing where a tenant would want to live ... because remember the first rule
of buy to let property … you aren’t going
to live the property yourself. What an ex-council property lack in terms of
kerb appeal, they more than make up for in other ways. Tenants more worried about how close the
property is to a particular school or family members, or the size of the rooms matter
to them far more than the look of a property.
Whilst ex-council properties tend to increase in value at a
slower rate than more modern properties, that is more than made up in the much
higher yields – and those built between the wars or just after are really well
built. Tenant demand for such properties is good since Melton Mowbray property
values are so expensive, a lot of people can’t get mortgages to buy, so they
will reconcile themselves to renting, meaning there is a good demand for that
sort of property to rent. Also, the very fact the council were forced to sell
these Melton Mowbray properties in the 80’s and 90’s, means that today’s
younger generation who would have normally got a council house to live in
themselves, now can’t as many were sold ten or twenty years ago.
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