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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

AIBU to think I'm never going to be able to save enough for a house.

84 replies

WhoWhatWhereWhen · 22/03/2013 20:49

When Universal credit is introduced anyone with more than £16k won't qualify, I need much more than that for a mortgage deposit, I'm screwed.

OP posts:
x2boys · 22/03/2013 22:21

the country is in serious debt lots of cuts are being made that people are angry about justifiably so in some cases but the fact that universal credit will not enable you to you to carry on saving at tax payers expanse is not a justifiable reason to be angry if you aspire to own your home than pr,haps you should aspire to get a better job through retraining or something? I would like to live in the little village i grew up in lovely place low crime rates excellent schools etc but i cant afford to simple as and i,m not entitled to any help thats life.

MisForMumNotMaid · 22/03/2013 22:32

I disagree with lots of posters here. shouldn't everyone have the right to aspire to their own home? Isn't home ownership an ultimate way to getting people off house related benefits?

For example if someone is on a low income and receiving top up benefits and housing benefit from their early 20's with an average life expectancy of into the 80's thats 60 years housing benefit. If they are able to save a deposit (even whilst on benefits) that removes them from that benefit bracket. So potentially 5 - 10 years of benefit rather than 60. Plus the asset then gives the DC a leg up deposit so they to are less likely to be in receipt of the housing element of benefits.

Original poster
WhoWhatWhereWhen · 22/03/2013 22:36

What about people who are already buying and get tax credits? should their payments be stopped so they can no longer afford to buy their home?

OP posts:
Original poster
WhoWhatWhereWhen · 22/03/2013 22:40

I have a friend who inherited a house, she doesn't need tax credits because she has no housing costs, should her tax credits be stopped?

OP posts:
NameGotLostInCyberspace · 22/03/2013 22:43

Tax Credits (Working Tax credits in particular) is only claimed as a top up. In turn we know that wages are too low. If we had fair wages for a fair job they would not be necessary. This top-up is different to usual benefits (JSA / Income support/ housing benefit).

I think its good that Op is trying to better herself by saving to get a house rather than living in Social Housing for the rest of her life. Well done for that. But there has to be a break off point and as you have 16,000 already you must be nearly there?? If not it will take longer but you have saveda good amount and just have to keep adding to it.

TraineeBabyCatcher · 22/03/2013 22:49

I dislike the attitude of blaming the saver for their ability to save.
If you have two people on benefits, one smokes and the other ones saves is that okay for them to smoke because at least they don't have money saved?
It's not the savers fault that there entitlement is higher than they need

hwjm1945 · 22/03/2013 22:50

All benefit should be means tested.it seems to me that the taxpayer is propping up private rents via /v
Hb and private companies via wage top up benefits,none of this is good for taxpayer, Inc people on.low wages.who would benefit from cheaper rents.difference between aspiring and expecting.is it right that tax payer should in effect pay deposit for an asset?why is it so bad to rent if u cannot afford to buy?as to tax credits going to those with houses already...needs to be means tested

hwjm1945 · 22/03/2013 22:52

Not criticising OP for saving.just commenting that seems odd for her to continue to receive state support while having16k in the bank....to allow her to purchase an asset for her.her family's sole use/benefit

SolomanDaisy · 22/03/2013 23:00

Essentially the OP's family is subsidising her, which is what's allowing her to save. That seems reasonable. I'm not sure how realistic getting a mortgage on that sort of income would be though. If it's possible, then the government's new deposit scheme should mean that £16k is enough.

expatinscotland · 22/03/2013 23:00

'I disagree with lots of posters here. shouldn't everyone have the right to aspire to their own home? Isn't home ownership an ultimate way to getting people off house related benefits?'

NO. Obsession with homeownership is the reason this property market is so screwed up.

Benefits are a safety net, not a means to feather your nest to save up for a deposit.

hwjm1945 · 22/03/2013 23:02

Agree with expat.safety net paid for by tax payer not some mythical'they'

ruledbyheart · 23/03/2013 00:19

Yanbu OP I understand what you mean I would love to be able to buy a house but we are on a really low income so a big chunk of it is gonna be UC, even if we hadsspare money to save to buy a house we couldn't because of the savings rule.
I know that if we could save the money then we shouldn't need the benefit point of things but for once it would be nice to have something that's mine like a house instead of spending it on surviving.

McNewPants2013 · 23/03/2013 00:32

Why own in the 1st place.

HoppinMad · 23/03/2013 00:49

I can sympathise OP, everybody wants a house they can call a home and have security for dc not to be hauled from rental to rental every few years. Rental properties are so shit in my area I feel more determined every day to save every penny so I can buy my own one day.
It isnt our fault that wages are so low they make saving impossible (unless living with relatives like yourself) and we need governmental help of top ups, its a right we all deserve.
Unfortunately when uc comes in I see alot of people stuffing money in mattresses etc and keeping it at home undeclared, as it will mean stoppage of certain help. Its not right but certain people will feel pushed into doing so.

MrsTerryPratchett · 23/03/2013 02:37

I'm firmly on the fence. While I work with low income families and am annoyed that they are not encouraged to save, 16K seems a fuck of a lot to have in the bank and receive State benefits.

A small amount of savings keeps low income people out of payday loan places and is a good thing. 16K in the bank? DH and I earn quite a lot and could only dream of that.

Astley · 23/03/2013 09:18

How have we got into the situation where you can live with your parents, have 16k in the bank and still be getting money off the state?!

Something has gone wrong, very drastically wrong that allows this to happen. If it is possible to do this legally maybe the rest of us should just go back to leeching off our parents while the state chucks money at us. I'd sure love 16k of free tax payer money in my bank account.

DukeSilver · 23/03/2013 09:33

I'm on benefits. I am a single parent and I live alone with my 2yo dd. I struggle to save £16 let alone £16,000.

To me, saving for a house will be something I do when I have a career set up that earns me enough money to do so. Living on benefits does suck, i'm not denying it. That's why i am aiming to get off them asap and start supporting my (tiny) family by myself.

idiuntno57 · 23/03/2013 09:36

Am I missing something? Surely benefits are a safety net not a savings vehicle.
If you have £16K then you don't need a safety net.

ThingummyBob · 23/03/2013 09:42

Surely the OP is actually saving the state money? If she rented privately she would no doubt need HB to help pay for the extortionate rent.

She then'd never be able to save enough to buy herself and could end up being subsidised for literally ever, or until the whole ridiculous rental market is properly legislated will never happen

I agree OP that you should pay a larger portion of your current income to your parents as rent, which they could gift back to you as a deposit on a property when the time comes.

Astley · 23/03/2013 09:46

Exactly! So all the 'benefits is never a lifestyle choice' stuff is BS. People clearly do decide that they will just milk it. I have never realised before that this is possible, that can have all this money in the bank and still the state will give you more Shock

It is disgusting.

moogy1a · 23/03/2013 10:02

Can we have a few opinions from certain people? You know, the ones that always say state benefits are a pittance and you can hardly get enough food with the money, let alone any luxuries.
This proves it's bollocks. Saving huge amounts whilst on benefits!! Proves it's too much.
As previous have said, it's meant to be an emergency safety net, not a vehicle to buy your own house / save wads of money ffs.

CockyFox · 23/03/2013 10:34

I've been thinking more about this over night. I have come to the conclusion that it is absolutely fair, £16000 is more than a lot people earn in a year so as annoyning as it is if you have that saved and then lose your job then yes you should live off that for however many months it allows you to. I am sceptical how it would be possible to save that amount whilst on benefits/tax credits so don't believe anyone would have their benefits stopped because of this.

zwischenzug · 23/03/2013 10:40

The theory of welfare is that it is a last resort to provide you a subsistence income to keep you going whilst you get back on your feet, so you can't really be expecting any sympathy with your view that the welfare system should pay for you became a private property owner.

In principle there is of course a lot wrong with how welfare has been enacted, seeing as much of the welfare budget is now spent giving rich pensioners handouts to buy votes, but two wrongs don't make a right...

DukeSilver · 23/03/2013 10:56

For me moogy it is enough to live on, not enough to save and I don't have a lavish lifestyle by any stretch of the imagination (food budget, don't buy clothes, shop in charity shops, have to really try to save up foe Christmas/birthdays, don't drink and rarely go out) but I guess the op's situation is different to mine as I live alone.

intheshed · 23/03/2013 11:33

But lots of people still get child benefit and/or working tax credit who also have a mortgage. If that's ok, then why shouldn't OP have savings. As long as she is not falsely declaring anything.