Vendors searching for companies to buy my property for just £1 have been catching a lot of media attention recently. And at the same time, the Government has been introducing more interesting schemes which could benefit both communities and individuals.
In essence, the idea behind being able to buy houses for only £1 is very simple. It is all about putting empty homes back into good use. Individuals can own property they may otherwise not be able to afford, while the community becomes safer and cleaner. Additionally, homes which have been unoccupied for a long time can start being lived in again.
An attractive offer
The impressive £1 starting price is undoubtedly an attractive offer compared to the average house price of £226,185. (as of July 2017: ) See the Land Registry page here for more information on house prices. With reference to Stoke-on-Trent’s scheme, a local council spokesman went on record to say ‘it’s a vision for social uplift and urban renewal’. And Stoke could certainly use some help. No doubt families who buy houses would be keen to explore the idea.
Why are they selling so cheap?
The main motive behind these schemes is arguably the crime rate and unsociable behaviour the abandoned homes attract. As a way of improving the safety of communities, renovation of the areas is vital. Due to the reputation of the houses, their value massively decreases. Therefore, trying to sell them on at an average house price would be almost impossible. Unsurprisingly, the £1 is just the beginning for each buyer. Some of these houses are in liveable condition directly after purchase, however others require desperate restoration. This summer in Middlesbrough, there was an auction for three houses up for sale at £1 each.
Be prepared to Do It Yourself
SDL Auctions’ partner, Gurpreet Bassi, thought the homes would be fantastic investments but would definitely need work. Councils are offering a rare low-interest rate loan for many buyers, an additional perk. The £1 auction starting price and £30,000 low interest loan for refurbishment works is a unique opportunity for both landlords and homeowners.
Who do the buy my property for £1 schemes help most?
The Cities and Towns
As a result of the schemes, the Government says that crime rates will decrease and more families will feel safe living in previously troublesome areas. The idea is that the bad reputation that cities have due to the derelict homes will be slowly die off. This will lead to more secure living for families and individuals and a better name for the City. Injecting a new lease of life into these properties could improve the status of the UKs more ‘unloved’ cities and towns.
In many cases, people hop around from rental property to rental property because owning their own home seems impossible. These £1 schemes provide a unique and exciting opportunity for individuals without much money to think I could now buy my property. For families struggling with income, the schemes offer properties at a price way under market value. A very attractive proposition indeed. The influence of hardworking people infiltrating a community could be paramount to decreasing crime rates. This in turn will create a calmer environment for families to enjoy living.
There’s a clear cycle of derelict properties, increased crime rates, bad reputations, and no future property sales in some areas. The £1 schemes enable people to effectively say they could buy my house fast and also be the very bold change needed to break this cycle of neglect.
So what’s the catch in the buy my property for £1 schemes?
The main catch is the additional work the new owner of these properties face. But remember, all these properties have great potential. In many ways, they’re a blank canvas so you can renovate the property to become your perfect home. However, another consideration is the length of time you are required to stay in the property after purchasing it. Many councils will require the buyer to live in the property for at least five years in order to avoid ‘flippers’. Flippers are people who renovate properties and sell them on for an immediate profit.
Although the buy my property for £1 schemes are tempting, ensure you are aware of hidden conditions before making any offer. In short, be sure you know what you getting involved in. As the saying goes ‘it’s better to be safe than sorry’.