Hi, I am very new to property investment and in the process of researching the various options (renovate/sell vs rent etc) and came across the Private Sector Leasing scheme run by various councils. Sounds like a good bet they lease your property for a number of years and guarantee you rent but I am sure there must be some downsides. Anybod have any views or know of any reports etc detailing whether this is a good bet for property investors?

Haf, I don't know specifically about council schemes but I suspect they are the same as those operated by Housing Associations where they take a property off you for an agreed period and guarantee to pay you an agreed level of rent. They guarantee to return the property to you in the same condition it was received in. I don't have personal experience (I just do some business with HAs) but HAs are reliable (I would suggest more so than councils) and it's a guaranteed income stream whether they let it or not. As to the quality of the tenants this is less certain but as I said they are obliged to give you the property back in good condition. Huw

Haf - Depends on what exactly you want from your investment. The council will guarantee you a certain figure (not necessarily the market value) for a certain length of time, this way they get someone off their waiting list. They say they will return the property to its present condition at the end of the period but I have heard some horror stories about them not doing this. So your investment is tied up for maybe five years and you have no say over who lives in the property. Personally I would not consider it due to the 'lock in' period.