Leaving a council tenancy to move back in with mum need some reassurance

[prestatynprlck]

For context I am 28 and single. I was given a council tenancy on a one bedroomed flat three years ago. Since then my circumstances have changed and I now earn 38k a year and I am in a position where I could buy a 2/3 bedroomed house soon. I have a 5% deposit saved but I need 10% really otherwise I am going to get stung my interest rates. I could save this in a year moving back in with my mum. I need to bite the bullet and do it however I know I would never get given another council tenancy again and I feel a bit scared of letting it go. Am I mad to consider giving up a secure tenancy to move back in with my mum?

I disagree. I would rather shit in my hands and clap, swallow ground glass, and jump from a helicopter with no parachute than be a landlord.

The OP could buy her flat on RTB though, and sell it, and make oodles of money and use it as a nice big deposit on a place she actually wants! If it's not a desirable area though, she could find herself struggling to sell it. (It will sell eventually though...)

Also @prestatynprlck please ignore the poster who said sublet your flat at an overinflated price, and move in with your mum. Terrible idea. You will 100% lose your tenancy! (Someone will grass you up, you can depend on that!)

The poster who suggests buying the flat then re letting it is wrong imo. My friend owns her own flat bought as a council tenant and she lives in it. She has had some horrendous bills because when the council decides to do something for the whole block she has to pay a share of the bill for what the council tenants get for free. E.g. new windows. The leasehold owner is required to pay a variable amount depending on what the council do and council work is never cheap.

I’d move in with your mum, save the money and then buy. If you don’t want to buy the council flat, then leave now if you’re fine with staying with your mum for a while

If you move in with your mum because she is lonely what happens when you move out when you buy your house. Will she guilt trip you not to do so as she will be lonely again.

This. I have worked for HA. many estates are really grim and I guess most people have no choice but to live there but would not choose to. As you say rents often not as cheap as people think either.

Don't give up your council tenancy. Stay put and save money until you are able to buy.

I’m reading it more like the OP has two choices:

1. give up the tenancy, live with her mum for a period of time and save £1000pcm,

2. stay in a council flat and save £500pcm.

Either way it will end up with her getting a mortgage, just less quickly if she stays in her flat. People aren’t really saying stay renting forever, just stay renting until you can afford the mortgage.

And being allocated a council flat aged 25 does rather make me question why living with her mum wasn’t an option then, and why it is suddenly an option now. And things might change in the time it takes OP to save.

I know people who could invite me to stay under these circumstances and I’d rather stay in my flat and share that cramped space with someone else, and I know other people who I know would be straightforward and easy going, so it does depend on their relationship with each other. If it’s that good a relationship how come OP didn’t move there aged 25?

Out of curiosity - does your Mum rent or own? Would she move in with you if you bought a bigger house?

I’m a few hours out of London and mine is getting on for £700. Bog standard house.

Do NOT give up this tenancy until you complete on a purchase. Honestly, I've seen this go south more than once through my work (housing lawyer). What will you do if you become ill and can't work, if lending criteria changes, if interest rates sky rocket? Always have one foot on the next rung, don't just jump off the ladder.

That’s just not true at all! Just look on Homeswapper for proof. My colleague pays £900/4wks for a flat off Holloway Road. Also (small difference but) rent is paid 4-weekly i.e. 13 payments per year.

In your position I'd do what you're suggesting.

Stay!!
Moving back home is awful after having your own freedom.

Do that then.

Your mum is lonely and pushing for you to move in. Do you really think she's going to make it easy for you to just up and leave again?

At the end of the day you could actually afford to buy now with your 5% deposit so if the worst came to the worst and you couldn’t stand living at your mums, you have the means to get out.

Move in with her and save that extra money. There is no point in keeping the tenancy for the sake of it.

I don’t understand why everyone is saying differently. They aren’t looking at your individual circumstance.

Usually I'd advise everyone to hold on to a council tenancy but in your situation I think it's probably a good idea to move to your Mum's and save the 5%.

Stay in your council house and save up .

OP visiting someone and living with them are two different things. Reality kicks in very quickly. Yes, you might save more living with your mum, but the dynamics and the stress of relying on someone else for your accomodation are not worth it. Life happens and things and people change. I would stay in your secure flat and save as much as you can.

Hi OP, I don't have a crystal ball for you but you can google house prices in the area you want to buy in and also long term national trends. You can spend a long time on this activity but in a nutshell property goes up in value. That's why rich people invest in it.
At certain times the national and local economy will fluctuate, for example covid and the 2008 financial crisis had a significant but short term effect on house prices.
My advice for what it is worth is to save your deposit from the comfort of your own council flat and buy when you can the property that suits your lifestyle not the one other people think is suitable.
Also your mum may be a little lonely but you living there for a short time isn't the answer, you know this. Help her fill her time in meaningful ways. Or meaningless ones actually. I waste a huge amount of time nor doing anything at all!

Also, if you moved in with your mum would you have to pay for storage for eg your cooker, fridge, washing machine, bed etc? That’s coming out of your £500 extra savings too.

One of 2 things should happen with council houses:
Either, the council should keep a careful track of the tenant's situation and, when it becomes clear that the tenant can now stand on their own feet, unsupported by the tax payer, that tenant should be given notice to move out.
Or, the tenant should feel social responsibility and end the tenancy when they no longer require it.

There will be many, many, others who will be genuinely desperate for that flat.

So, yes....move into your mum's house and save. And give that flat to that battered mother.

The cultural pressure towards being an owner occupier is due to how difficult it is to get a secure tenancy. You have the golden ticket - a secure tenancy means you will never be homeless and you will never be bankrupted by unexpected repair costs eg if a new roof is needed. If your income gets drastically reduced due to severe illness or redundancy your rent will be covered.

Scraping together a 10% deposit and buying a place would be a downgrade. You would be insecure for a great many years, with a chance of possibily gaining a greater security if nothing disastrous happens in the next 30 years but plenty of chances to lose everything.

Move in with your mum for a while and save up to get on the property ladder. There are loads of people out there that need a council house.

OP something to consider. Your rent is low, has stayed there.

We bought our house, 20% deposit and 1.5% interest. £750 a month. Doable.

2 years later coming to remortgage the world had changed. Due to renovations and some other circumstances we managed to increase our LTV to 40% which gave lowest rates but meant we were now 40% equity on a 4.5% interest mortgage paying £1100 a month. A £350 a month increase (50%!) purely from interest despite owing less. We also had a child and were paying £1500 p/m nursery fees!

We recently got another deal at 4.15% due to 60% LTV. Same lender at 90% LTV was 5.35%. 80% LTV takes it down to 4.9% interest.

Take that into consideration. If the interest rate went up 3% could you still afford it? What if you had a child? The LTV makes such a big difference if you could wait and get 20% deposit it could make such a big difference to your mortgage repayments, and pay a low rent in meantime.

Where did you live before you got the council flat?

when did you stop living with your mum and why?