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Hi Everyone. I'm a first time buy to let investor and have had an offer on a 2 bed house accepted in the Swinton area of Manchester. While going through the searches though I've discovered there is a compulsory purchase order on houses on the estate where I'm buying. The house I'm purchasing isn't directly affected, but over 100 houses nearby are going to be knocked down and rebuilt and the work is due to start in the next few months. The new estate will be mostly social housing with about 1/4 of the houses available to buy privately or through shared ownership. I'm wondering whether to go ahead with the purchase or pull out. In the long run the development may be good for the area, but in the short term not so much. It may make my buy to let harder to market. I'm also wary of the amount of social housing this will mean. I'd be grateful for any advice.

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What's your strategy and what are the long term plans?

 

If your estate is about to be turned into a predominantly affordable housing area, then that might impact on the strategy. If you're already targeting that market, then you may find you've got a bigger property in an area lots of people want to be. 

 

It's good to be aware of what's proposed in the area, but without knowing how it will affect your longer term plans, it's hard to comment.

 

I would say that BTL is a long term horizon, so a short term hiccup shouldn't concern you too much. CPO isn't as bad as it's made out to be, so if they decided to extend and build more in the area and you do get bought out, you'll probably be fine. 

 

You're right in as much as a bunch of LHA tenants new into an area is going to put off some private tenants - so just be clear on who your market is. 

Damien Fogg
MRICS CeMAP CeFA

Email: damien@theepinvestor.com

Web: www.theEPinvestor.com

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