Active discussions

Meet the Other Phone. Flexible and made to last.

Meet the Other Phone.
Flexible and made to last.

Buy now

Please or to access all these features

Talk
AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

What would you do. Buy or rent housing association flat?

58 replies

Cheeseandlobster · 03/12/2022 14:05

I am posting on behalf of one of my best friends who doesn't know what to do.

She is living with her ex dp in his home. He is a difficult character in lots of ways as he never made time for her and was emotionally unavailable. He has however said she can stay as long as she needs to sort herself out.

She has always wanted to buy her own home but is unable to afford anything other than a run down property in a bad area. She has a 10 percent deposit and enough for second hand furniture. At 45 she feels time is running out but is scared of negative equity with the current economic climate. She has also been bidding for local authority/ housing association flats and has been 4th or 5th in line recently so may be successful soon.

She has a job which will give her just enough to get by on but her salary will increase in increments over time.

She is torn between desperately wanting to own her own home but she won't be able to afford anything but bills, food and socialising only once a month. Or the option of an ha flat where she could afford to have a better life than just affording the essentials. I think she would struggle not being able to go out often after her relationship breakdown but am worried advising to go down the ha route might be the wrong thing.

What would you do in this situation?"

OP posts:
Original poster
Cheeseandlobster · 03/12/2022 14:50

Anyone? Perhaps the title should read buy a home or rent a housing association flat. It doesn't read how I intended

OP posts:
Fidgety31 · 03/12/2022 14:55

Rent the flat and then buy it in a few years time under Right to Buy

LBFseBrom · 03/12/2022 14:55

It's better to buy of course and belt tightening doesn't last forever. I know a couple who bought a small, one bed ex-council flat a couple of years back and they have felt the pinch but are now in a position to buy a house so it has paid off.

Your friend really has to weigh it all up but there's nothing to compare with owning your own property, be it ever so humble. If it is a bit run down, maybe friends can help with decorating and, as you said, she can buy second hand furniture some of which is really nice (British Heart Foundation for one).

The most important thing for a woman on her own is to live somewhere she feels fairly safe so that factor must be considered.

I wish her well whatever she decides.

Itsabitnotcold · 03/12/2022 14:56

I wouldn't buy a run down property in a bad area right now. Negative equity is a real risk. Especially with such a low deposit, but the area is likely to get worse, not better.

Rent the cheapest she can and save save save.

SkylightSkylight · 03/12/2022 15:03

How is she coping living there?

Do you think he means she can stay a bit while looking to move out asap or would he be happy for her to still be there in the spring?

if she's ok living there & he's ok with her there linger I'd advise to wait until at least February to see how the housing market goes.

if she needs to leave sooner than that I'd advise to buy the smallest place in the best area she can. (Rather than bigger in a worse area)

Any rent is dead money.

SEND2022 · 03/12/2022 15:06

If she can afford to buy she may well not have the option of renting a HA flat.

Also, PP said about right to buy. There isn't a right to buy for HA homes

Original poster
Cheeseandlobster · 03/12/2022 15:10

SkylightSkylight · 03/12/2022 15:03

How is she coping living there?

Do you think he means she can stay a bit while looking to move out asap or would he be happy for her to still be there in the spring?

if she's ok living there & he's ok with her there linger I'd advise to wait until at least February to see how the housing market goes.

if she needs to leave sooner than that I'd advise to buy the smallest place in the best area she can. (Rather than bigger in a worse area)

Any rent is dead money.

She is finding it difficult as he is a strange character and not easy to get along with at times. She isnt in danger though and could stay until spring.. She is desperate for her own space but wants to make the right decision. She says she feels she is very much last chance saloon mortgage wise so the housing market situation has come at the wrong time.

OP posts:
Luredbyapomegranate · 03/12/2022 15:10

Fidgety31 · 03/12/2022 14:55

Rent the flat and then buy it in a few years time under Right to Buy

Something like this.

Or look at shared ownership.

Buying is generally good, but not a run down property in a bad area

If she rents HA does she pretty much get to stay for life? If so that’s quite secure so I would do that and then look at shared ownership

Original poster
Cheeseandlobster · 03/12/2022 15:16

SEND2022 · 03/12/2022 15:06

If she can afford to buy she may well not have the option of renting a HA flat.

Also, PP said about right to buy. There isn't a right to buy for HA homes

She has about 30k in savings she says. There is no savings threshold mentioned on the council website but some websites say some areas have a 50k threshold so she would be below that.

OP posts:
Fidgety31 · 03/12/2022 15:17

@SEND2022 ok it’s Right to Aquire or something like that with a HA - but same principle as right to buy

Original poster
Cheeseandlobster · 03/12/2022 15:19

LBFseBrom · 03/12/2022 14:55

It's better to buy of course and belt tightening doesn't last forever. I know a couple who bought a small, one bed ex-council flat a couple of years back and they have felt the pinch but are now in a position to buy a house so it has paid off.

Your friend really has to weigh it all up but there's nothing to compare with owning your own property, be it ever so humble. If it is a bit run down, maybe friends can help with decorating and, as you said, she can buy second hand furniture some of which is really nice (British Heart Foundation for one).

The most important thing for a woman on her own is to live somewhere she feels fairly safe so that factor must be considered.

I wish her well whatever she decides.

I would be able to help decorate and source furniture but many of these homes need more than this

OP posts:
2bazookas · 03/12/2022 15:22

She has a job which will give her just enough to get by on

Then she probably won't get a mortgage.
Sounds to me as if she's pretty clueless about the additional costs of buying a home ; legal fees, rising mortgage rates, repairs and maintenance, buildings insurance.

A run down property in a bad area will be more expensive to maintain and insure.

Original poster
Cheeseandlobster · 03/12/2022 15:41

2bazookas · 03/12/2022 15:22

She has a job which will give her just enough to get by on

Then she probably won't get a mortgage.
Sounds to me as if she's pretty clueless about the additional costs of buying a home ; legal fees, rising mortgage rates, repairs and maintenance, buildings insurance.

A run down property in a bad area will be more expensive to maintain and insure.

She knows all this. She has enough for legal fees and is aware that repairs etc would be her responsibility hence being reluctant to buy a run down home. She has factored buildings insurance and life assurance ( we went through this together as I used to work in financial services) and has a mortgage offer in principle already. So far from clueless. She just wants to make the right decision.

OP posts:
NewBootsAndRanty · 03/12/2022 15:46

Fidgety31 · 03/12/2022 15:17

@SEND2022 ok it’s Right to Aquire or something like that with a HA - but same principle as right to buy

Is that for every HA property?
I've been in mine for over a decade and have no RTA/RTB or similar.

ladywithnomanors · 03/12/2022 15:48

Living on her own in a rundown house in a bad area sounds miserable. With no spare cash to renovate or socialise? Depressing.

GrumpyPanda · 03/12/2022 15:50

Owning is about a) security of tenure and b) building up assets. If she is offered a nice enough flat in a decent area that would take care of a), freeing her to invest in other long-term appreciating assets such as stocks and funds. Seems win-win to me, it's spreading her risk and means she gets to avoid all the unexpected bills connected with home ownership.

Ivyblu · 03/12/2022 15:51

I would rent. Because the house may need repairs and how secure is her job?

UC won't pay your mortgage of she fell on hard times.

BatshitandBonkers · 03/12/2022 15:51

Whatever she does she should avoid buying in a bad area.

There have been a couple of threads recently from people who regret being in a bad area, living in a bad area can seriously damage MH.

MelchiorsMistress · 03/12/2022 15:52

If she can get a secure HA tenancy she’d be much better off doing that. She won’t be able to buy on a budget and make a nice home. Relatively, her savings aren’t huge, and she’d be much better off having the money to make a nice home out of a decent property without the responsibility of building maintenance.

RitaFires · 03/12/2022 16:09

Prices for materials are very high at the moment and it can be very hard to find trades that are available to do any work. I would normally say do whatever you can to buy a house but your friend's circumstances sound like she'd be much better off in a HA property. Unless she has great DIY skills and experience that would make her confident to do a lot of renovation work herself.

SEND2022 · 03/12/2022 16:39

Fidgety31 · 03/12/2022 15:17

@SEND2022 ok it’s Right to Aquire or something like that with a HA - but same principle as right to buy

A right to aquire is not compulsory for HAs and if they agree they can offer you a different home instead.

SEND2022 · 03/12/2022 16:41

Cheeseandlobster · 03/12/2022 15:16

She has about 30k in savings she says. There is no savings threshold mentioned on the council website but some websites say some areas have a 50k threshold so she would be below that.

Show quote history

See technically our LA has a 50k threshold too but those with 30k would be so low priority they are unlikely to ever reach the top of the list and because of this our LA more or less force them to privately rent. Published criteria and actual reality are two different things

AssumingDirectControl · 03/12/2022 16:45

SEND2022 · 03/12/2022 16:41

See technically our LA has a 50k threshold too but those with 30k would be so low priority they are unlikely to ever reach the top of the list and because of this our LA more or less force them to privately rent. Published criteria and actual reality are two different things

Show quote history

Indeed, I’d be astonished if she was offered a HA tenancy as there are plenty of people in greater housing need.

Gingerkittykat · 03/12/2022 16:46

Is she applying to the HA as someone who is homeless due to relationship break up?

I ask this because even 4th or 5th in line doesn't necessarily mean she is near the top of the list and she could be bidding for a long time.

Are there any part own schemes with HA where you live?

Yabado · 03/12/2022 16:59

My son is doing a rent to buy
long story but he is renting the property he is going to buy as a SO from a HA just waiting for his mortgage to be finalized .
he rents it at just below what his mortgage / rent & service charge would be so much cheaper than regular renting the same apartment
is this an option for your friend
my son has a years AST but they disregard this as soon as he buys it so he won’t have to pay any extra months rent once he buys and he will get his deposit back as well