I’m not missing something here am I? Universal credit, renting and saving for a deposit.

[tiredconfusedhungry]

Keeping it a bit vague. I’m separated, STBXH and I were looking at figures last night and we’re not going to come out with much to put towards a deposit. We’re looking at around £15k each, I’d need a deposit of around £60k - £70k and that’s to buy a 2 bed house.

We’re in the South East and house prices here are high, rent is high. We’re already in the ‘cheaper’ part, moving further away from where we are puts us in prime commuting land and would be more expensive.

Anyway, it’s likely I will end up renting and saving for a bigger deposit. I did a calculation on entitled to (based on no savings) and I could get some help with rent, which is great. It means I could save some money each month and then hopefully buy after about 4 years.

But now I’ve looked into it further, if you have more than £16k in savings you aren’t entitled to any help. Which I do understand, but it then means that after all essential bills and costs are covered, I’d have about £200 left a month. Which doesn’t go far with 2 kids and certainly wouldn’t leave me anything to save.

So essentially I’m never going to be able to save a deposit am I?

That’s if universal credit (or other similar benefit) still exists in a decade or two. I wouldn’t count on it as the country is running out of money and we will go through many more governments reforming welfare spending. Your only security is your own earning power as a long term investment. Not a quick fix on the taxpayer’s expense.

I would definitely have another look at shared ownership property.

Agree. I don't see how the system as it is at the moment is sustainable. I have fears the whole system will collapse or be severely reduced. I fear we are in for a very rocky time over the next couple of decades and don't think the current system can be relied upon.

Why do you think so many mps are landlords.
Why else do you think so many are against wfh . They own office buildings and they are no good without people renting them.
Its all a con

It’s extremely tough financially being a single parent OP (I am also a single parent living in the South East). Particularly at the moment. I really feel for you. I know the area you’re living in and I understand that unless you moved to a totally different part of the country, it’s not going to help with housing costs. I earn significantly more than you and still find it difficult.

Some people in your situation would carry on living together even though you have separated. Obviously that’s really tough psychologically (don’t think I could do it) but it is worth considering whether this is an option for you, at least for a period of time while you save, in terms of housing and financial security.

Otherwise I agree with a pp that looking at shared ownership houses is worth doing. You could also go on a waiting list for a council house though I don’t know how long you might wait in your area.

I’m an employer. Productivity literally dropped of a cliff when we “wfh”. I literally don’t give a shit where people work from. I do care that they do what they are paid for though. No “con” here.

Is shared ownership an option given that you appear to be a key worker?
I also read that a new scheme is coming in for those who are on 30k a year and have proven to pay rent consistently but cannot get a mortgage because they cannot save for a deposit.

UC isn't there to enable people to save to buy property.
It's for people who have fuck all, less than 6k in total.
Though you can have a property if you live in it and it's your only one and you don't make money from it.

If you've got more than that or the ability to get more then you need to stop claiming once you've got 16k. If you've got 6k you must declare it as you'll get a reduced amount. Over that and it's not for you.

It's 6k where it starts tapering off and the number hasn't increased for many years despite the rate of inflation and the cost of living crisis and NMW going up.

We are going to stay here for at least a year, I’m just an incredible over-thinker and I am running through 101 scenarios 😂 This one just hurt my head a little.

We have already discussed us doing the ‘nesting’ thing with me going to my parents and him staying at work overnight. So we have options, which is very fortunate.

Im off to update my CV and start a proper job hunt!

It's not affordable to buy a property with a single income unless you earn a lot more than £27K! It's a reason why separated couples stay in the same property because they cannot afford single household living.

I’m assuming that the £1,200 she currently spends on monthly rent would be enough for a mortgage, but you are right that this needs to be considered.

On the individual level, the only way of getting what you want is to significantly increase your income

Exactly.The comment we’re referring to, with good grief! made me laugh.

OP, I know you said ex wants half. But is their income more than yours?

Just wondering if you can push for more than half of the money, if they are earning more than you?

UC tries to keep people down and will not raise the saving limits in line with inflation. They don't want people clawing themselves up and getting their own homes.

Or have you considered buying a 2 bed flat, just for short term?

The “nesting” thing actually sounds like it might work for you, at least for a while so you can save up more for a deposit. I wish you much luck with the job hunt too!

That doesn't make sense, if she bought a house she would have to pay a mortgage, and contrary to popular renter belief, they are very expensive. If she needs UC to pay rent, how will she manage to pay a mortgage

Yep, completely agree.

IMO you shouldn’t be saving benefits money, it’s there to support people who need it not for people to accumulate as surplus. Sorry that doesn’t work for you.

He probably would be agreeable to that, he earns about £45k.

Reality is most people cant afford to buy a £6/700k house. Understand you dont want to move, but its a pipedream on a salary of £27k regardless of UC support.

The government has a saving scheme for people on low income/UC. It is called 'Help to Save'.

It wont help OP in saving for something big like a house deposit, but it is wrong to say people on UC should not be able to save.

I might have anticipated someone having a bash at LL's again. Most LL do t buy the house they rent out. They simply have an interest only mortgage so NOONE including tax payers are buying the house for the LL.