There's always someone who wants to have a go, isn't there! 
OK, here goes:
As the OP does not want to do the rest of the work as there is now a baby in the family it seems an odd selling strategy to expect to sell to young family!
No, that's not what I said. We did a significant amount of work when we first moved into the house, with a pre-schooler in the house. Much more than this list. Then the baby came and my OH lost his job. So we had less money than we thought.
Those are circumstances personal to us. We managed to get more work than listed above.
but you might struggle if the price does not reflect the unfinished nature of the house and the fact that its ex Council
Erm ... the price does reflect this. It's within a massive estate of 1930s council houses, considered one of the more desirable parts of town, incidentally. It's not going to lose value for being ex-council, it's priced as what it is already.
It is not true to say that all 1930's homes are solid and well built. No, but this one is. That's what the full structural survey said anyway, borne out by our experience of living in it.
Wild horses will not drag some people to buy in the worst areas Do I detect a whiff of snobbery, perhaps? Because it's ex-council, it must be one of the worst areas, you think? As I said, it's one of the more desirable areas in this town.
Why would a young couple do this? Because houses are fucking expensive, and this house gives them a chance to get on the ladder, in an area that is desirable (not just because of good schools, but that's a huge motivator for families of course), that they might not be able to afford otherwise. Not all young people want to move into a home that's out of a sales catalogue.
Many want to put their own stamp on, add value - or, simply, be able to afford it.