What are the risks of investing in ex-local authority/council properties in the UK? I am referring to purchasing from a private landlord an apartment that was built by a city council for social housing in the 1960s-1990s (and then sold it off with right-to-buy schemes). Typically, these properties are part of larger estates and are leaseholds. The council still owns the ground.
For example, there are a lot of ex-council apartments in London in central locations for 30-40% less than on the "normal" real estate market. I read about the following risks as a landlord:
- Anti-social behaviour on the premises
- Regeneration: Councils might purchase the property back to demolish it with compulsory purchase orders (typically to license the land to private developers).
- Costs of compulsory maintenance work (for example changing cladding)
Any other risk?
EDITED: added clarification