I believe many people have heard of the term 'Council House.' Some avoid buying or renting this type of property, while others think it's great and see no issues with it. Why are there such polarizing opinions? Today, let's delve into what exactly a Council House is, and after reading, you can make your own judgment.
Table of Contents
What is a Council House?
When people talk about a 'Council House,' they are actually referring to 'Council Housing,' which includes both houses and flats. For simplicity, I will use 'Council House' throughout this article. You can think of it as the UK's version of public housing, designed to provide affordable accommodation for the general public. As of December 13, 2021, the average weekly rent for a Council House in England was £73.44. As the name suggests, Council Houses are managed and built by the local City Council. At its peak, around 42% of the UK's population lived in Council Housing, but by 2021, this number had declined to about 16.6%.
The first Council Estate in the UK was the Boundary Estate, located at E2 7JR in London, completed in 1890 but officially opened in 1900. Although the first Council House was built at the end of the 19th century, the majority of Council Houses in the UK were constructed between 1919 and the 1980s. After the 1980s, very few new Council Houses were built.
During World War I (1914-1920), over five million soldiers served in the British military, with more than 800,000 killed and over a million injured. To reward and support these war heroes, the government began building Council Houses en masse, even branding them as 'Homes Fit For Heroes.' During World War II (1939-1945), with frequent bombings reducing many buildings in the UK to rubble, housing conditions were dire, so the government accelerated the construction of Council Houses. The aim was not only to accommodate soldiers but also those involved in the post-war reconstruction, such as workers.
Eligibility
Since Council Houses are managed by the local City Council, each Council may have slightly different application requirements. For example, most Councils require applicants to be 18 years or older, but some allow 16-year-olds to apply. You should check with your local Council for specific details.
Similar to public housing in Hong Kong, the allocation of Council Houses is based on a points system—the higher your score on the waiting list, the sooner you may be allocated a house. Generally, applicants who meet the following criteria will score higher:
- Homelessness
- Extreme poverty, living in cramped conditions due to financial constraints
- Current living conditions that are detrimental to your health
If you rank high enough on the list, your City Council will contact you when a house becomes available. Additionally, if your financial situation improves after you've been allocated a house and your income exceeds a certain threshold, you may have to pay higher rent or even return the house to the government. This is quite similar to the situation with public housing in Hong Kong.
However, in general, holders of BNO visas are not eligible to apply for public housing unless they are in extreme financial hardship, in which case the authorities may consider their application.
For more information on eligibility, you can refer to the official website:
https://www.gov.uk/council-housing
History of Selling Council Houses
As early as 1936, laws in the UK allowed Local City Councils to sell Council Houses. Between 1957 and 1964, about 16,000 Council Houses were sold in England.
In 1979, when Margaret Thatcher became Prime Minister, there was an oversupply of Council Houses. The government reduced the number of new builds and introduced the 'Right to Buy' scheme, which encouraged tenants to purchase their Council Houses, thereby reducing government welfare expenditure and accelerating the privatization of Council Houses.
In 1980, a three-bedroom terraced house in Harold Hill, Essex, became the 12,000th Council House sold by the Greater London Council, with the property purchased by the Patterson family for £8,315. The family had lived there for 18 years, and after the sale, they were even presented with the title deed by Margaret Thatcher herself. As of January 2020, the property was valued at approximately £180,000.
The image above shows a Council Flat in Carmarthen, Wales.
Pros and cons of buying Council House
After a Council House is sold, it is referred to as an 'Ex-Council House.' Generally speaking, Ex-Council Houses have the following advantages:
- Cheaper price compared to other properties in the same area
- Practical layout with larger space
- Often located in areas with good public transport links, as Council Houses were built with surrounding infrastructure in mind, making it easier for residents to access city centers. As a result, some Council House locations have now become prime real estate.
The main disadvantages include:
- Low potential for appreciation
- Some mortgage companies are reluctant to offer mortgages for Ex-Council Houses, limiting your options and possibly reducing the amount of loan you can obtain.
- The general perception that Council Houses are for low-income individuals may harm the property's reputation, making it harder to find buyers when you want to sell.
- Council Houses make up a large proportion of Non Standard Construction properties.
How to Check if a Property is a Council House?
You can check if a property is a Council House by visiting the following website:
Enter the postcode or address, and if the property and nearby street numbers are identified as Council Houses, then the property is likely an Ex-Council House.
Conclusion
As the saying goes, 'different strokes for different folks.' Ex-Council Houses have their pros and cons. The 'Right to Buy' scheme has been in place for over 40 years, and many Council Houses have been sold, some even changing hands several times. Therefore, the perception of Ex-Council Houses as homes for low-income individuals has gradually improved, though some mortgage companies still have reservations about them. I hope this article helps you understand Council Houses better and gives you a more comprehensive perspective on whether to buy an Ex-Council House.
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(The above information is for reference only. Please refer to the official website for everything.)
