Letting flat to council tenants - Advise please

[Ungarsee]

Long story short, we're buying a new build house, had our flat under offer but the buyer now can't get a mortgage. All the new offers are coming in too low and we are actually in the strange position of being able to raise more money through a further advance on our current flat than selling it unless the offers increase.

What I am looking for some advice on is letting my flat out to the council. The pro's, as I see it, are that we would get a guaranteed rent for a set period, the council would deal with the tenants if they didn't pay up and at the end of the contract they would put the flat back to its original state. It's the con's I am worried about as I'm sure there must be some, so is there anyone out there with some experience?

Cheers

[Ungarsee]

Thanks for that. How did it end up getting to that point on the other flat if you don't mind me asking? By the sounds of it the Council have just walked away which seems to go against the promise of getting the flat back in it's original state (minus wear & tear)??!!

By the way, can you negotiate on the rental income and do you tend to get under the going market rate?