To accept ‘affordable housing’ that isn’t affordable

[PookieDo]

I hope this doesn’t become a judgement thread about the politics of housing just advice or opinions, has anyone been in a similar situation? Ultimately ‘affordable housing’ doesn’t really seem very affordable, but what options do people have?

Single parent who works 48 hours a week in 2 jobs earn about £25k (before tax, NI and pension). One of these is zero hour contract and variable income. Live in South where I was born and DC go to school. 2 teen DC and get very small amount of child maintenance for them. Living in crap private rental flat now paying £850pm, no garden, no central heating under a crappy landlord and am classed as overcrowded. Claim some universal credit which helps with housing costs. No savings. Also studying through employer to get better paid jobs in future.

I was contacted by the local council and I have been offered the potential of a housing association Home. There are a lot of these at present being built on new estates and they are really struggling to get people into them. These are not council housing at lower rents in fact the rent will be more than what I pay now but on my salary, I still can’t actually afford it in reality. No one is bidding on them because the rent is £900pm, people who need housing obviously can not afford them? I can see the housing every week and it is true no one is bidding on them because they are repeatedly listed there week in week out. The list size where I live is apparently fairly low now and now they seem to be building more than they can offload to qualifying residents.

But it could be a secure tenancy and I will have more rooms and heating. I do not know what to do.

1. hold out for an older cheaper council house at a much lower rent that I can actually afford on my salary - could be a very long wait
2. stay in unsecure private renting with unpredictable rent rises, crap LL/heating issues. Also I am stuck in a 12 month fixed term till April and might have to pay 2 rents until it ends if LL decides
3. Try to make housing association rent payments work by cutting back on all other bills and eventually getting a better job
4. Move away from area completely to cheaper part of U.K. including DC father, schools, family, friends and my jobs

I’d go back to the Council and see if you can negotiate on the rent, but ultimately I would be taking the housing association property and (a) looking for a better paying job (b) depending on how old teens are expecting a contribution to board and lodgings.

The good thing about a HA property is that it’s stable, you aren’t liable to horrendous increases or just being chucked out because LL chooses to sell.

What WoodlandOaks said and you may be able to claim some benefits which will help you with the extra rent.
Good luck!

If you have better heat and probably insulation, then chances are even paying the extra £100 a month you may break even with lower running costs. I'd try to negotiate it down a bit even if they only drop it £50.

£900 a month for a 3 bed house is a somewhat fair price. It assumes a value of about £200k with a rate of 4%, reasonable rate if you consider the maintenance costs. The issue is with benefits not being realistic about what an income of £25k can afford. You are working two jobs, more than 40 hours a week. Financially you should be able to afford it.

I would go back to the council and when they say no write to your MP detailing the issue and also send a copy of the letter to Frank Field who is now an independent MP but the leader for these issues today in parliament.

I agree I should be able to afford it but on basic salary of £1500, rent of £900 is insane! This is why I have a 2nd job

New problem is that I am in fixed tenancy till April and don’t know if my LL will let me out early. If not I will have to rent them both at the same time and probably have to get a loan?

There is another option. What are these houses like? Are they "worth" £900 a month in comparison to other HA/council places? If so could you take it and then look for an exchange to something cheaper? There will be some people who, for whatever reason, will always have their rent paid by benefits, so they could move into one knowing it will be paid. Honestly the secure tenancy is worth the extra £50 a month. As far as your current LL, you could either try and negotiate to leave early or explain to the council that you would like one but can't get out of your contract until April.

I think this is going to become the norm with HA, in the South at least. My friend has been looking at an exchange and she's seen properties the same size as hers (for which she pays £700 a month) at over £1000 a month.

I would consider moving somewhere cheaper if you can find a job there. If not then don’t take on one if these properties before you current term expires. Also consider whether you actually need it. Will your children be leaving home in the next few years? Moving costs are also a consideration. You don’t want to pay to move now only to do it again in a couple of years.

The issue is that benefits have not kept up. These are homes which are for people who qualify for 100% of the cost to be paid. That isn't fair. You are doing all the right things and you should be supported living in a council home that is an applicable size for your family. £900 a month isn't outrageous. I know for our disability tenant we charge more but it's a custom built home for that family.

Will your children be leaving home in the next few years

I feel that's irrelevant. My Dsis had two children who moved out. She had always private rented. As private rents went up she downsized and downsized until she was living in a shoe box. Which she then also had to leave! She ended up sleeping in her van for a few days while she found something else. If OP is never going to be able to afford to buy a HA tenancy would be so much more secure than private rents.

I intend to downsize when DC leave so this house may not be a ‘forever home’ as such and I could apply for a transfer.

i have 3 ish years until eldest leaves full time education (if she stays in after this year) and 5 years for the youngest child

Ideally I would love a shared ownership but this might be more likely in 10 years when I have downsized and DC have left but then I will be nearly 50 so that might not be realistic buys lottery ticket

They are new build or new ish in the last 5 years at this ‘affordable housing’ rent. 3 bed boxy newbuilds

Being rural I have noticed the very cheap social housing is out in the sticks with no transport links and oil central heating but £100per week. So may be jumping out of the fire to take something like that!

They don’t give you much time to make a decision on a property and this one is not going to come up again in this location for a very long time. I wish i wasn’t stuck in the lease till April! Lovely area for DC with good transport links. But saying that my LL could rent this place for a lot more under HMO than he rents to me I bet

@Asta19

Some of them make you take an affordability check
So I think this excludes a lot of people and possibly only people absolutely desperate for emergency housing would get one

On this particular property (the best located one so far) I know the HA are desperate to get it rented as it’s not new build, it’s a few years old and don’t want it empty, so if they get no bids in my district then they will send it to other more heavily subscribed districts. I know this as my mother works in a neighbouring district and they emailed her yesterday trying to offload it onto them! But my bidding closed today and I think I am the only bidder

Go for the security of the HA and swallow the shortterm pain:

Only 50 quid per month more - your LL could soon put up your rent by more than that,
especially if you think you may already be paying him less than the going rate

Similarly, 2.5 months double rent would be swallowed up later by an LL rent increase

The rent could soon be more manageable if you say you are studying for a better job.

Have you looked into if the housing association offers rent free weeks? Councils offer 4 so it offsets 5wk months.

you bid for it, so if you dont take it then you may go to the back of the queue for everything else. Universal credit should cover the extra, your heating costs will be less, and you wont have to move again for years.

Don't hold out. Take the property councils are starved of cash, so they are getting rid of housing stock. Get hold of a secure tenancy and ensure you allways pay the rent on time. Look at increasing your income too after you've taken the tenancy. Speak to your housing officer to see if you can arrange/negotiate cheaper rent to. But above all take it. If you wait for cheaper council property 1) it may not come 2) if it does come you'll end up having to do up the house because it will be in a dire state and they no longer give a good enough allowance to do up a decrepid home

OK I am waiting for the formal offer and if it’s suitable I will take it

I am going to appeal to my LL to let me end the tenancy 2 months early and vacate quickly (but pay until end of month

I need white goods and flooring - which I won’t be able to buy if I have to pay 2 x 2 rent for 2 months!

But it's only an extra 50 quid a month more than what you pay now? For a bigger newer better house with a secure tenancy. Just do it.

I know this sounds awful - and having been a landlord, goes against the grain, ask to give notice early. If they refuse, just don't pay the rent they can take it from your deposit.

The downside is it could affect your credit rating, in practise I would not have bothered issuing a claim or applied for eviction due to non-payment. If you are offered the property & get a moving in date, do the sums & go. Just pay your rent up to your departure. That is what I would do, in the face of your LL being inflexible.

Would it be worth it in the long term to buy the housing association home?

I really don’t want to do that - I also honestly couldn’t say he wouldn’t sue me if he was angry!

I am going to propose something sensible, leaving quickly and paying until the end of the month. He will rent it out HMO in no time. I have £1000 in deposit which if I lose, I lose but I really need it for white goods and carpets and no doubt he will take some for cleaning my place. I’m going to make it clear I can’t pay him otherwise so am implied threat of if you insist on charging me till April I will find this very difficult!

@Moominfan

I would like to buy a shared ownership so just need a deposit. Then I would buy a HA shared ownership property but need to be 1 or 2 bed - so thinking would try this when DC leave home/older

My mum downsized from 3 bed to 2 bed to now in a 1 bed bungalow when my Dsis and I left home so it is doable to downsize in HA swaps as kids grow and move out. I don’t want to put too much ££ into a house I won’t stay in just needs practical things.

I would need to rent a van and ask if anyone would want to help me move on the cheap which I have done before. Sofas and beds the biggest items. Then need to clean my current place. So much to think about

I'd check a few things but generally would advocate a secure social housing tenancy over prs

1. what will your tenancy be - not all social landlords would offer a secure tenancy to begin with - you are likely to have a "starter" tenancy that his reviewed. Normally the reviews/extensions would be terminated because of issues like ASB, rent arrears etc. The government previously encouraged social landlords to review tenancies regularly and "move people on" if earnings had increased but this is not happening now. I don't think its a problem but just so you're not blindsided if they offer you an AST first up

2. are there any service charges - you say a house so am assuming not but double check

3. If they are desperate to let (which they sound like they are) what can you negotiate with them - i.e. a larger than normal decorating allowance/white goods voucher etc

have worked in housing for over 20 years and happy to answer any other queries you may have or give any insight into the landlord if you want to DM me...

Thanks! They all seem to be starter tenancies I’ve noticed
Unsure on finer details yet - I think I am allotted the property (what I can see online) and also I spoke to them last week and they admitted they needed it offloaded so would see what they could do

It’s a national HA I had no idea they offered any negotiation or extra help? Do I just ask them?