To ask what would happen in this scenario?

[greenmint]

I have been asked to advise and I honestly don’t know.

‘Eleanor’ has a baby and is a single mother. The child’s father plays no part whatsoever in her life.

Eleanor has no other family to support her. She works full time in an expensive area of the country and rents a small flat and pays for FT childcare for her baby. She gets no benefits other then CB.

Eleanor owns a property that was left to her as part of an inheritance that is let out. The income from this means she can rent her flat and contributes to her baby’s nursery costs.

Eleanor has now found out her landlord is selling the flat. She is unable te rent anywhere else because of poor credit. Is there any onus on the council to help Eleanor and her baby?

Eleanor doesn’t mind a bedsit or hostel. She just wants to be able to continue working and supporting her child.

The way I see it is, she is in a fairly golden position if she has poor credit, she owns a property outright.

In those circumstances the most sensible option is to have current tenants evicted and move into the property that is owned outright and work life around that.

It’s common sense surely, providing a safe, stable home for her child should matter more than anything else, it may mean having to find another job, but she’s in a fortunate position given that she will never have to find the money for rent. That sort of stability is worth moving across the country for.

The issue is that a new job she may find would not cover childcare costs. Her current job is very much dependent on location.

Eleanor doesn’t mind a bedsit or hostel

It's not a very sustainable living environment though. Disruptive, cramped, potentially noisy and unfair on her child if there is a chance they could be in place of their own.

Perhaps she should mind a hostel, some of the people living in them are at the 'chaotic' end of lifestyle. Even living in a hotel is a pain, I know someone who was temp housed in a Travelodge with 3 kids, no cooking facilities and lots of strangers trouping in and out.

"The property is worth about £100,000, so it’s finite. Ultimately she’d have to move back into it and claim benefits."

Yes. I think this is the most sensible solution.
Much better to do this than follow the advice of pp to use the capital up bit by bit in paying rent/childcare somewhere else.

In Eleanors position, I would move back into the property, claim benefits for the immidiate meantime and regroup.
Its still a pretty good position to be in and will be an even better position once the child is in school and childcare costs are lower.

The issue is that a new job she may find would not cover childcare costs. Her current job is very much dependent on location

How far away is the property she owns? If she lives in a particularly expensive area, she might find childcare costs are less.

The issue is that a new job she may find would not cover childcare costs.

The area her house is in will have cheaper childcare than the SE and she won't be paying rent. The job may pay less, but taking this into account she might not be as worse off as you think.

The issue is that a new job she may find would not cover childcare costs. Her current job is very much dependent on location.

If her new salary is lower she may well be entitled to the childcare element of working tax credit. They pay up to 70% of childcare costs. Also, she could rent out a room or two in her house to make up income.

Eleanor has a £100K asset. She should use this to fund her life, not expect the council to bale her out when she has access to £100k by selling her unearned asset.

Childcare costs are also likely to be lower outside of the SE.

Our Council have a one stop shop kind of thing with a list of local private landlords who are will willing to rent out properties to those on benefits, with poor credit rating etc. Might be worth Eleanor ringing her local council to see if they do similar.
I would really try and avoid the hostel or b&b route if at all possible - plus they are not cheap either!

Oh yes, no rent to pay, that’s a massive saving.

She needs to do her homework on the area where her house is. Salaries, childcare costs etc. It sounds like she is panicking rather than actually thinking through her options. She needs to face this properly with an open mind.

The issue is that a new job she may find would not cover childcare costs

But she won’t be paying rent, so could use that money towards childcare. She might also get help with the costs of her salary is low.

Yes, but Eleanor's asset isn't possible to just use tomorrow, is it? It's got to have the tenant leave (up to a year) then be sold (up to 6 months).

To me, this is not a moral question but a technical one- she needs to get legal advice on when/whether to leave her current property or wait to be evicted, and also continue to look for 6 month up front payment properties which I think she will find eventually if she approaches landlords direct instead of through credit checking agents.

She’s been handed a £100k asset on a plate, earns double the average U.K. salary, and wants to know if the council can bail her out?

I’m struggling to believe this is real.

If it is, as others have said, you can usually rent if you pay upfront (so sell the house to afford it) and many agencies will let with a guarantor to people with poor credit.

Life throws curve balls at us sometimes. Being gifted a £100k property is one hell of a great curveball. Many people who lose relatives end up with nothing or in debt as a result, not being handed a house!

I sure as hell hope the council don’t go offering help when there are people actually in need and finite resources, my god!

Her current salary is £48k
Income from Owned property: ?
Current childcare costs: ?
Current rent: ?

New salary (roughly): ?
Income from renting room(s) out: ?
Childcare costs: ?
Potential tax credits: ?

When I was offered emergency accommodation after I presented me and my DC to our council all they could offer me was a room 30 miles away from my dcs schools shared kitchen £120 a night and the lady told me to avoid at all costs due to the other residents. During the week we would have to be out 9-6 - OK during term time but not school holidays.

Yes, but Eleanor's asset isn't possible to just use tomorrow, is it? It's got to have the tenant leave (up to a year)

But Eleanor is in the same position, she is also a tenant being asked to leave. If she gives notice to her tenant at roughly the same time, the house would be available for her not too long after she has been evicted.

Eleanor doesn’t mind a bedsit or hostel

Really? Has she ever had to live in one before? It’s an awful experience.

How big is her current flat that she rents? Can she downsize to a studio in her current area? Can she and the child become lodgers or do a shared house rental with other people even in the short term? I know people who do this. £48k is a good salary - is it possible the company she works for would offer a loan? Some do.

Basically you're asking if someone with a £100K asset should be entitled to keep that and take up social housing that families with no assets could use.

And the answer is no, she should not.

If she has been paying her rent etc for a while then her credit rating will have increased. Can she not find a private rental (look in papers etc), or, even a house share at least in the short term. Realise that she works and lives in the south with a property in the Midlands which allows her to do that and, I praise her for being a working single mum paying her way. There must be somewhere she can go and get advice. The Local Authority may be able to advise or at least ppint her in the right direction. I wish her luck.

It’s a private rent. Makes no difference to credit score.

Wouldn't mind a hostel? I bet not, I'd be willing to live in a hostel if it meant I got to keep a £100k house. Feel for her poor kid though.