Selling Your House To The Council, Will They Buy It?

Selling a council home doesn’t have to be stressful. Companies like The Property Buying Company make the process simple and hassle free. With years of experience in buying and selling homes across England and Wales, they offer services designed to meet the specific needs of homeowners, no matter their situation.

With 41% of homes bought under the Right to Buy scheme now owned by private landlords (New Economics Foundation), mortgage buyers often shying away putting in offers, and councils across the country facing significant housing shortages, you might wonder if your council would buy it back.

The answer, as we will explain later, is no – it’s highly unlikely. Instead, one of your best options might be to sell to a cash property buyer – whether that’s a property investor or a company like The Property Buying Company. 

If you decide to go down the cash buyer route, it’s important to choose a reputable company. Look for one that’s a member of the National Association of Property Buyers and The Property Ombudsman to make sure you’re treated fairly and the process is transparent from start to finish.

Will the council buy your home back?

If you had asked this question 10 years ago, the question would almost certainly be yes – but, this is becoming an increasingly difficult question to answer. 

Many councils across the UK are currently struggling with serious financial problems due to overspending and a lack of funding. In fact, some have already declared bankruptcy, and others are close to it. 

A recent survey by the Local Government Association found that nearly one in five council leaders and chief executives think their council could go bankrupt in the next couple of years. If you live in one of the council areas below, it’s very unlikely that your local council will buy back your home.

Councils that have already declared bankruptcy

Here are some councils that have officially run out of money and issued what’s called a Section 114 notice:

• Croydon Council: Declared bankrupt in November 2022 for the third time. They’re dealing with a £130 million hole in their budget, mostly caused by years of financial mismanagement.

• Thurrock Council: Went bankrupt in December 2022 after racking up a £500 million deficit from failed solar energy investments.

• Woking Council: Issued a Section 114 notice in June 2023, with a shocking £1.2 billion deficit caused by risky investments in things like hotels and skyscrapers.

• Birmingham City Council: Declared bankruptcy in September 2023. They owe over £750 million in equal pay claims and have been hit hard by problems with a new IT system.

Councils at risk of bankruptcy

Some councils haven’t gone bankrupt yet, but they’re not far off. Here are a few that are in serious financial trouble:

• Hampshire Country Council: Looking at a £175 million shortfall in 2025-26, the biggest gap in the country. They’ve already had to cut services like libraries and street lighting.

• Surrey Heath Council: Warned in late 2023 that they could go bankrupt within two years due to £165 million of debt from failed property investments.

• Havering Council: In September 2023, they admitted they might go bankrupt within 6 months because of rising costs in housing and social care. Luckily, they have secured £54 million in government support which should help them through.

• Cheshire East Council: Hit hard by the cancellation of HS2’s northern route, leaving them £11 million out of pocket for preparatory work. In 2025/26 they are forecasting a shortfall of around 31.4 million.

• Bournemouth, Christchurch and Poole Council: Facing a £63.2 million deficit in their education budget, mostly because of overspending on support for children with disabilities. The council will be technically insolvent from March 31st, 2026.

If you’re hoping your council will buy back your home – especially if you live in any of the councils above, the truth is, it probably won’t happen. Most councils just don’t have the money right now.

Why is selling an ex-council house hard?

Selling an ex-council house on the open market can be tricky, especially because some buyers associate a stigma with these properties. This is particularly true in areas where council housing is linked to socioeconomic challenges, which can make ex-council homes less appealing – especially to those needing a mortgage.

For example, Better, an independent mortgage broker, says that many lenders require larger deposits for ex-council properties. If a lender normally offers a 95% Loan to Value (LTV) ratio for standard homes, they might only offer 90% for ex-council homes, meaning buyers need a bigger upfront deposit. This can narrow your pool of potential buyers.

Here are some common issues that surround selling ex-council homes:

Leasehold issues

Ex-council flats often come with leasehold agreements, which means you own the property itself but not the land it’s built on. This can make selling them more complicated, especially when leases are short. Buyers tend to hesitate if a lease is running out because extending it can be expensive and time consuming.

For example, extending the lease on a flat worth £200,000 could cost around £5,000 if the lease has 85 years remaining. However, once the lease drops to 60 years, the cost can skyrocket to around £38,000. On top of that, you’ll need to pay legal and surveyor fees, which can add another £2,000 to £4,000.

And, it’s not just the cost of extending a lease that’s a concern. According to The Guardian, some ex-council leaseholders face massive bills for maintenance and repairs:

• Emma Clarke, who lives on the Taverner and Peckett Square estate in Islington, received a maintenance bill as large as the deposit she originally put down for her one bedroom flat.

• Another resident on the same estate was hit with a staggering £61,000 bill for a three bedroom flat.

These kinds of unexpected costs can scare off potential buyers and make it even harder to sell an ex-council property on the open market. Leaving many ex-council homeowners in a tough place, especially if the council won’t buy it back themselves.

Mortgage challenges

A lot of ex-council homes, particularly those built in the 1960s and 1970s, were made with non-standard materials like concrete or steel frames. These construction methods are often seen as higher risk by lenders, which can make it harder for buyers to get approved for a mortgage.

If the ex-council property is in a high rise building, it might face some additional hurdles. Some lenders simply won’t approve mortgages for flats in buildings over five storeys tall because they view them as less marketable – with many having a much lower resale value.

Similarly, cladding on high rise flats can further complicate things. Many lenders will now require an External Wall System (EWS1) form to confirm the building meets safety standards before they’ll even consider approving a mortgage. This requirement can delay or block sales entirely if the form isn’t available.

Another issue is the length of the lease – most lenders insist on a minimum lease term, usually between 70 and 85 years, to approve a mortgage. If the lease is shorter, it’s seen as a risk because the property’s value drops as the lease runs out, making it less appealing to mortgage buyers and lenders.

This is why, using a cash buyer (who isn’t reliant on mortgage approval) is your best option, especially if your council is reluctant to buy it back off you.

Right to Buy restrictions

If you bought your home through the Right to Buy scheme, there are some restrictions to keep in mind if you decide to sell it. For example, selling your home within five years of buying it, could mean you’ll need to repay some or all of the discount you received. 

But, how much you pay back depends on how long you’ve owned the property:

• Year one: You’ll need to repay 100% of the discount.

• Year two: 80% of the discount must be repaid.

• Year three: You’ll need to repay 60% of the discount.

• Year four: 40% repayment is required.

• Year five: You’ll repay 20% of the discount.

• After five years, you can sell the property without having to repay any of the discount.

But, if you sell within the first ten years, you’re required to offer the property to your former landlord (usually the council or housing association), or another social landlord in the area first. This must be done at the full market price, which will be agreed upon between you and the landlord.

These rules are designed to make sure that homes sold under the Right to Buy scheme stay available as affordable housing for a reasonable amount of time, helping to support the wider social housing sector.

Location & surroundings

Ex-council homes are often found on estates that are still predominantly council owned. While these properties can offer great value, some buyers might be put off concerns about the neighbourhoods reputation or how it could impact future property values.

On average, properties on council estates sell for around 70% of the price of similar homes in the private sector. For instance, if a privately built three bedroom house is valued at £250,000, a comparable ex-council flat might sell for around £175,000.

This price difference reflects both the stigma associated with council estates and the practical appeal of ex-council properties, which are often more affordable for first time buyers or those looking for more space at a lower cost.

Need to renovate

If your ex-council house needs renovating, it could be a dealbreaker for some buyers. In communal areas, such as roofing or plumbing, maintenance costs are usually shared among residents. Unfortunately, these costs can be steep — some residents in council owned blocks have faced refurbishment bills as high as £40,000.

Older ex-council properties also tend to have lower Energy Performance Certificate ratings, meaning that they are less energy efficient. While the percentage of homes in England rated EPC C or higher has improved from 12% in 2010 to 48% in 2022, many older homes, including ex-council properties still fall short.

Why are cash buyers beneficial?

If you need to sell your home, working with a cash buyer or property investor might be a better option. They can often offer a quick and straightforward sale without the delays or complications you might find elsewhere.

Take The Property Buying Company, for example. They work across England and Wales and will buy almost any property, no matter the condition – including ex-council housing. Unlike mortgage buyers relying on mortgages, they can act quickly and handle properties that others might avoid.

After buying your property, they either keep it or sell it on, depending on what works best for the property. What makes them stand out is their ability to turn ex-council homes into affordable housing, helping to meet local demand. This takes away the hassle that regular buyers or councils often face, like long refurbishments or managing tricky properties.

By selling to The Property Buying Company, you get a smooth, hassle free sale, and your property can go on to make a real difference. It’s a win-win!

How many houses have councils bought back?

In recent years, local councils across the UK have been stepping up to buy back former council homes in an effort to tackle housing shortages and provide more affordable options. When councils are not facing financial pressures or the threat of bankruptcy, they are more likely to invest in repurchasing these properties to address local housing needs.

Since 2015, councils have collectively spent around £1.7 billion to reclaim around 8,600 homes that were previously sold under the Right to Buy scheme. This trend has picked up significantly in recent years, with over 5,900 homes bought since 2020 alone.

In London, the Mayor’s Right to Buy scheme, introduced in July 2021, has played a massive role. So far, the scheme has helped bring over 1,500 homes back into public ownership, with 14 boroughs receiving £152 million to fund these acquisitions. These homes are now being offered at more affordable rates to help meet the growing demand for housing.

If you own an ex-council house, don’t feel discouraged if the council isn’t able to buy it back directly from you. Thanks to systems established by the Home Office, private companies can rent properties out to the Government to help ease the strain on housing shortages. Many of these properties are acquired through companies like The Property Buying Company.

This means that even if your local council isn’t interested in buying your house, The Property Buying Company likely will. They offer a fast, and hassle-free alternative, ensuring your property can still be put to good use in addressing housing needs.

Why do councils need more properties?

The Right to Buy scheme, particularly during the 1980s and 1990s, caused a massive decline in council-owned homes. Many of these properties were sold to private buyers, which significantly reduced the amount of social housing available for those in need.

Fast forward to 2024, and over 41% of homes sold under the Right to Buy scheme are now in the private rental sector. This shift has resulted in higher rents compared to council housing, pushing councils to buy back these properties and reintroduce them into affordable housing pools.

According to the Resolution Foundation, Angela Rayner, the Deputy Prime Minister, would need to spend £15 billion just to build 125,000 new homes to house all the families currently stuck in temporary housing. And, if they want to go beyond that and actually create a surplus of housing, they’d need 400,000 extra properties — at a cost of £50 billion.

It’s no wonder the Labour government criticises the Right to Buy scheme. The homes sold off at big discounts weren’t replaced anywhere near fast enough, leaving England with a severe shortage of social housing and millions of people struggling to find a stable, affordable place to live.

The graph below shows how property sales surged in the 1980s, leaving a long term shortage of affordable council housing:

With demand for housing intensifying in cities like Birmingham, Leeds and London, councils are under growing pressure to provide affordable homes for their communities.

Buying back former council homes is often quicker and much more affordable than building new ones. Constructing a standard three bedroom house, sized between 90 and 120 square metres, can cost anywhere from £126,000 to £300,000. On the other hand, ex-council homes can sometimes be bought back for as little as £50,000, depending on where they’re located.

The easiest way to sell an ex-council home?

The simplest and fastest way to sell an ex-council home is by working with a cash house buying company such as The Property Buying Company. These companies specialise in buying properties outright, whether they’re freehold or leasehold, and no matter their condition, location or size.

Cash buyers are ideal for sellers who need to move quickly. With no reliance on mortgage approvals, sales can be completed as quick as 7 days, although most cash sales take around 3 to 5 months to complete (still far faster than an estate agent). 

The Property Buying Company’s average sale time currently sits at 119 days – but their fastest is 2 days, helping you to sell on a timescale that completely suits you.

What’s more, properties with issues like structural problems, noisy neighbours, or in high rise buildings can deter mortgage buyers. Cash buyers, however, are often willing to buy the ex-council flats and homes, offering a solution where the open market fails time and again.

The Property Buying Company has built a strong reputation for providing a fast, simple and transparent service. They cover all your legal fees, and the cash offer they make is the amount you’ll receive – no deductions or last minute surprises.

Check out some of The Property Buying Company’s success stories:

For ex-council homeowners who want speed and convenience over achieving the highest possible sale price, a cash buyer can be an excellent choice. If you’re ready to sell your council home, start by entering your postcode below for a free, no-obligation cash offer. You’ll have the flexibility to choose a timeline that suits you.