To accept this housing association property

[whyismysoullost]

Hello,

I posted this in CHAT but have not received enough replies as I hoped. This decision is literally stressing me out as I have to give a definite answer by next week. Anyway to begin....

After 6 years of living in a very small one bed, council property (secured) flat,which we've had so many issues with, but that's for another thread. We have been offered a housing association property. Woohoo !

The only and big issue is that the flat is £279.00 a week for a 2-bedroom ! Plus pricing will go up every year (I assume) My family members think I'm crazy for considering this. I can afford the property (just about) but it will be a stretch. If I'm totally honest, we will need to cut back on a few things. I'm going to see the property next week.

What do you think ? Any questions that I need to ask before I accept the property/ or not, next week will be appreciated !

Are there no private rentals locally for less than that? I live in an affluent area and it would be nowhere near that for a decent 2 bed (not London, mind)

rice Private tent in London is roughly the same price as that or a bit less.

Depends how much you need the extra space.

If it's about the same as private but gives you everything you need then the benefit over private is security. I might be tempted to wait to see what else is about, but if you're unlikely to get another offer soon and desperately need the extra space then it's worth weighing up pros and cons. At least with a HA they won't object to claiming HB help if needed.

What's the difference between your current rent and this?

How much do you want an extra bedroom?

Is the new flat in better condition and in a nicer area?

Could you get another job that pays more money or a second job if you needed to?

I'm assuming you have children as the association would not over occupy. If you work there might be some benefits available to you. Can you give more detail on your circumstances?

£279 a week is crazy. Im in a housing association flat and the rent is £121 including a service charge. When I first moved in 11 years ago the rent and service charge was £100 a week, so the rent increase each year is not a huge amount.
Can you afford £279 a week or would it be a struggle for you?
if you afford it go for it if not I wouldn't bother

Sorry should have provided more information.

I only have 1 DC. I currently pay roughly £130 for my current accommodation. We've had to many issues with it but due to time, money (!) and effort it's decent. However, DS is 10 and needs his own space. It's only a 1 bed flat.

Pilot I'm Lucky that I work 4 days a week full time. Though I will to work extra hours if I accept this property

stickerqueen yes ! The amount is ridiculous. I can just about afford it but it will be a BIG struggle. I would not be able to afford it if the rent increases- that's my biggest fear plus paying for other bills.

Whereabouts are you in London? Calculation for monthly rent is usually 4.5 x weekly amount so about £1255 which is very cheap for a 2 bed rental in London. (Its outrageous that that is true by the way) 2 bed average rentals in my area (zone 3, SW) start at a out 1500 ish. Also being HA it should be more secure longer term than the awful private sector.

You might get housing benefit even if you're working. Find out if you can and do your sums on that basis.

Personally I would be tempted IF the housing benefit means you wouldn't be worse off AND you're unlikely to be offered anything cheaper. You need the space, you could always look to downsize when the Hb stops when your son hits 18.

However, if it's that you've come to the top of the list, could be offered something more affordable and won't get housing benefit, I'd hang on and see what else comes up.

Any variation in the combination of those two circumstances, I'd weigh it up but not torture yourself about it because it's so hard to predict the future.

Have you checked to see if you're entitled to any universal credit?

If its going to be a big struggle then I wouldnt accept it. I'd stay in one bed and give DC the bedroom and have sofa bed in sitting room for me.

Sorry, yes, I meant the housing element of universal credit. If you can talk to someone at cab they should be able to do a calculation for you or alternatively your housing officer could help with this. I wouldn't rely on an online calculator as they can be inaccurate and it's a big decision so you need all the numbers to be right.

What makes you think the rent will increase every year?

Some housing associations do increase every year. Mine doesn't - in fact it's actually gone down by a fiver a month since I moved in - but some of them do. Plus in a flat you've got charges for utilities in common areas eg electricity for lights in staircases etc and for services carried out by 3rd party contractors and these can go up too.

I'm at the top of my list when it comes to bidding for housing.

I will not get Housing benefit anymore, I will be moved onto universal credit, I will receive very little as I work.

BerwickLad really ? The 279.00 also includes the service charge. Will this go up too?!!

How's the list looking when you bid? You've got this one offer - have you been in the top three for any others that are more affordable? On others you've bid on, how long had the successful bidders been on the band and does that compare to how long you've been there? That might give you an indication of whether something else cheaper is likely to be offered.

Please don't discount universal credit housing element. If £279 is standard for a two bedroom property where you are, taking into account the private sector rental market as well, the benefit rate may well be high. Obviously you're not entitled to that at the moment as you're only in a one bedroom place and your rent is lower but that could change if you move.

@whyismysoullost it can but like I say mine hasn't. Ask them what increases there's been over the past five years.

the other huge benefit over renting privately is security of tenure - there is another thread abount a long term tenancy ended because the owner decided to sell the property.

Wait till you have seen it as if it's perfect it might be worth going for it. If you can work extra hours then that would help out too. Def check your HB entitlement too but the extra space with a growing DS would be essential to me.

Thanks BerwickLad. On the bidding list I'm coming up between the 6th-10th person when there have been a maximum of 1,000 bids on the same property.

I have been shortlisted 5 properties during the two years. The four properties I was outbid and the 5th property was very unsuitable. I may not even get this property so I'm probably fretting for no reason.

I spoke to a benefit advisor where I was shortlisted for a property that had the similar rent as to this one. He said that the majority of my UC will be towards rent- nothing else. Plus, the fact that I'm working, I will receive less.

To be honest, I would rather not rely on benefits. I would like to work and pay all of the rent with my own money that I worked for. However, not at a Hugh price which is detrimental to mine and DS's living. I'm trying to work out if I will be financially ok without involving benefits,

Stay where you're at and save £50/week for five years for a down payment on your own place.

It's a no from me.

@whyismysoullost OMG why is it so expensive? It's social housing. It shouldn't be THAT expensive.

In my county, the housing associations were told (in 2014 by the government) that they have to drop the rent 1% every year for five years, and then have to keep the rent the same for a further five years. I know several people in H.A. properties with cheap-as-chips rent (2 bed bungalow at £70 a week, 3 bed house at £90 a week, and a 2 bed flat at £63 a week.)

I also know someone who lives in Greater London in a 2 bed flat (H.A,) and she pays £77 a week..

Nearly £300 a week for social housing ANYwhere in the country is outrageous, and should be outlawed.

Universal credit will not cover it, and you will end up in the financial mire.

I personally would not take it.

JMO.