Awful housing situation - please help (estate agents?)

[Idonthavemytoolsmycloak]

I hardly dare type this because I'm so scared of the replies.

Basically we have unexpectedly been given notice on our rented house. We have two months to get out (me, DH and two DDs). The problem is that DH informed me last night that there's no way he'll pass a credit check and probably not the affordability check because he's behind with tax. Otherwise we can prove affordability easily.

The ONLY thing that we have going for us is that we've rented for the last ten years (3 different properties including this one) and have an impeccable renting record. We pay upwards of £2000/month in rent and have never missed a payment or had any complaints against us or anything like that. We had to move previously because the houses were being sold.

So at the moment we can't see a way out and I'm petrified that we'll end up homeless in two months. DH is in a dreadful state and I want to help him but I don't have anything positive to say at the moment.

Does anyone have any advice??

What’s your own financial situation?

When you say he’s ’behind with tax’, what does this practically mean re: failing a credit check - is he in a lot of debt? How is he dealing with his tax arrears?

I’d ask for a letter from your landlord explaining you have been good tenants, not missed payment etc so you at least have it.

A guarantor may be necessary if the financial situation is v poor - do you have someone who could do this?

Thank you for your reply.

I don't know re tax. All he said was that he's behind and he's at work at the moment so I can't clarify. I believe it's being paid off, just not as fast as it should be.

I thought about a guarantor but I don't think we have anyone suitable. Are retired people allowed to be guarantors??

Behind with tax- is he self employed?

Yes retired people can be guaretors ( sp sorry - you get the drift ) - I am for DD even though I have absolutely no income at present - go figure

Look for properties privately rented, don’t go through estate agents - they require all sorts of paperwork and hoops to jump through. I rented out a small annex in my old house, I put up an advert in local corner shop and rented out to a family for 3 years, I never did any financial checks, just made sure they had good references. I’m sure you could find similar.

For renting a credit check is a bit different as you aren’t borrowing money from a financial institution. Obvs it helps to have a good record but with the best of intentions and the most rigorous financial outlook this isn’t always possible. I’d say all of us at some point have found ourselves in a situation we wouldn’t have chosen or planned.
most agent checks will look at the big picture.

Contact Shelter and discuss how the recent legal changes might apply to you. It maybe that the notice you've been given is now illegal. Sit tight and do your homework to see where you stand.

https://www.gov.uk/government/news/historic-renters-rights-act-becomes-law

We haven’t even been given a date yet for when the changes will come into force

ETA that the links you have attached clearly outline that nothing has changed yet. Telling her to “sit tight” is bad advice.

Telling her to contact Shelter and discuss it with the experts is good advice.

HTH

I am sure that Tax arrears do not affect your credit rating, it’s worth checking - hope you find a solution OP

You both need to go on a credit check online and identify what the problems are. Tax doesn't affect credit rating unless there is a CCJ, bankruptcy or similar. Missed payments on loans, mortgages and credit cards can affect credit rating. Lots of landlords are leaving the sector due to the legislative reform that was rolled out this week. You should seek advice from the local authority. You may not qualify for emergency housing, and they may tell you to stay put until the court forces an eviction. However, you may need a good landlord reference from the owner confirming rent payment etc so consider that. Where I am, private landlords often put flats etc on local community facebook pages, and open rent advertise as well. You just need to stay vigilant as demand for rentals is high in most places. It is up to the landlord to decide what sort of guarantor they would take. A retired person with income might be considered perfectly acceptable, but most landlords would consider if the guarantor would have the funds to cover the rent if the tenant was unable to do so.

Yes retired people can guarantor, you have to prove you have income or savings to cover the contract. When I did it I sent a screenshot of my savings account which was several times the annual rent (it’s in lieu of a proper pension!) but they accepted it

Contacting shelter to discuss how the renters rights bill might affect it and ask whether her landlord has acted illegally is rubbish advice because they’ll tell her he hasn’t and the renters rights bill hasn’t come into force yet. HTH

And do not sit tight as some advise, getting evicted will blacklist you as a private renter in the future. Look at private let’s not via an agent as there’s often more wiggle room and through smaller agents too as they are more likely to listen to circumstances than big chains. My old landlord even took someone on benefits with a guarantor because he listened to her circumstances and wanted to help (domestic abuse situation) and i personally asked him too, having met her at the viewing, she’s still there 5 years on and has never missed a payment, best of all she’s gone back to study and is almost qualified as a solicitor, planning to work in family law! Everyone deserves a chance, good landlords exist

What is your monthly income and how much are the flats you are looking to rent.

This, but also OP I’d recommend speaking to your estate agent to ask what their specific policy is.

For example where we are, rentals go really quickly with a lot of competition and most now will only allow a home owner to be guarantor, on top of being a home owner they also have to prove they could afford to pay whether that is by pension income/savings etc.

After tax I believe that it's around £9/10,000. I work but don't earn much.

They're all around the price we're paying now. Affording the rent isn't an issue, it's getting there in the first place.

First you need a clear picture of your financial situation:

• check your credit ratings
• your husband should log into .gov and check his tax situation (tax arrears don’t affect credit ratings AFAIK, but YOU need to know what you are dealing with)

Secondly, seek advice from:

• Shelter - not specifically about the new RRB, but for advice on your specific situation
• local Council housing department

Also check that you LL has complied with all extant legislation as any infraction might make the notice invalid.

Lastly, talk to local letting agents in person and find out what their requirements are and what you may be able to do to mitigate your circumstances.

If he owes HMRC, it will certainly affect his credit score. Rule no 1 of being in business is that you pay HMRC before you pay anything especially yourself. I think he needs to be clearer with this - with that income of £9 to £10k a month why on earth isn't he paying it?

Tax arrears will not show up on a credit check.

if you both do credit checks yourself now (cheaply form the main credit reference agencies ie Experian) you’ll see what is on there and if there is anything else that you need to worry about.

It won’t because HMRC don’t feed into credit reference agencies

Thank you all so much for the replies. Very much appreciated. I've taken on board the suggestions and we're beginning to see a clearer path now.

I'm struggling to understand why you are even renting with an income like that. Surely you could be a few years into ownership by now with the security that brings? You have been buying houses for other people by renting.

Just pay to do your own credit search with Experian or Equifax and see what the situation is. Rental agreements aren’t usually on a credit search and neither are tax debts unless he has entered in to an official arrangement or he isn’t telling you how bad it is and they have registered a CCJ or a default against him.

I’m sure I’m not the only one wondering why the OP and DP have not purchased a property and are panicking because they have to leave the current rental.

A possible back story based on OPs vague explanation about current indebtedness suggests to me that to purchase a property would be an asset claimed by creditors.