Thanks for the reply, much appreciated.
There‘s no economical equation involving purchasing a property at a market value and subsequently letting it to a council tenant at below the open market value that would be of interest to any investor. The setup costs, ongoing fees and (evidently increasing) taxes, plus eventual CGT erode any worthwhile margins even at OMV rental rates. Purchasing a property to be let affordably (to the tenant) makes no financial sense whatsoever.
In essence, the tenants must be paying the council an ‘affordable’ rent, who in turn pay a larger contracted fee (to the ‘approved’ landlord) with the difference being made up by the local council tax payer.
There is clearly no easy solution to this, but people need to be aware in those circumstances it’s not the landlord that takes the hit, it is the council.
Just who these deals are being struck with and what the true levels are will be a closely guarded secret, but it’s a murky business and one that needs looking in to,