The rundown council house that sold for astonishing £1.4million

It's now a very plush holiday let

A rundown home with a stunning view has become the priciest council house in Cornwall, and possibly even Britain, ever recorded.

Council housing is typically low-cost accommodation aimed at providing those in need with a place to call home. However, the price tag on this particular property is sure to leave you astounded.

Sunset House, located in St Ives, was under the ownership of Devon and Cornwall Housing, now known as LiveWest, at the time. The detached property had three bedrooms, a reception room, kitchen and two shower rooms.

But it was its unique and desirable location that warranted its seven-figure price tag.

In 2017, the property, which overlooks Porthmeor beach, was listed for auction with a guide price of £626,000. While this may seem like an exorbitant amount for a former council house, it actually sold for a staggering £1,440,000 when push came to shove, reports Cornwall Live.

The property was subsequently acquired by a private owner and, unsurprisingly, was swiftly demolished to make way for a luxury residence. However, the nearly £1.5m generated by the social housing company at the time was used to provide more affordable homes in the county.

Paul Crawford, CEO of housing association LiveWest, had commented prior to the final bid at Allsop Auction House that the proceeds from selling the property would be invested into creating a minimum of 10 affordable homes in Cornwall. He mentioned that it wasn't sensible to have just one family living in such a prime spot when the opportunity existed to develop multiple affordable houses for others in need.

"The challenge is how do we maximise the worth of our homes in good locations," he noted. "If we retained that home, it would benefit one family, but, by selling it, it will create a significant number of affordable homes for many families."

"We have to take advantage of the buoyant market and by selling such properties, we can provide desperately needed affordable houses."

At the sale time, the average property value in St Ives was marked at £339,416 based on Zoopla's Zed-index figures. In contrast, the area's average property had been sold for £484,656 in the past year.

In 2016, St Ives made headlines by voting to restrict new home sales to second-home buyers. This rule only applied to newly built properties and thus didnt affect Sunset House, allowing its conversion.

The site's new proprietors, Mr and Mrs Harris, took down the existing structure in 2019 to erect a luxury dwelling, doubling the available parking space. They transformed the plot into what has been lauded as a contemporary beach house featuring 'understated luxury'.

Mixed reactions were sparked when images of a new house under construction surfaced. The owner described the plush pad, which they still own seven years later, as a 'forever home'.

As the build neared completion, local holiday lettings firm Cornish Gems announced that it would soon be available for rent, accommodating up to eight guests in four sea view ensuite bedrooms. In 2021, Cornish Gems posted on its Facebook page: "Before the Cornish born owner moves into their forever home, Cornish Gems has a window of opportunity to rent Sunset House, St Ives."

The cost of staying at the property ranged from £3,149 to £7,395 for a week's stay and £2,624 for a two-night break between November and March. Bookings were open throughout 2021 and 2022.