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’d stay where you are and just save for longer if I was you

And then 3 years later you put yourself on the council housing list alone.

So this begs a massive question- why? Why couldn’t you just live with your mum then? Why didn’t you live with her for the last few years ?

Are you rose tinted glasses about the whole living with her thing?

She's not going back 'to live' with her Mum though! She's merely going to lodge there for a year. She's not giving her rented place up on any sort of social conscience basis either, she's giving it up because she wants to own a home.

Another thought OP - if you buy now with a 5% deposit your monthly repayments will be higher, but could you rent a spare room out to a lodger to balance that ?

id you live with your mum for one or two years while you save, you risk house prices increasing at a rate that outstrips your savings.

Can you not find a friend needing a place to stay so you share- you move in living room and she gets the bedroom?

That will also allow yous to spend more weeks (2 at a time and back one week) at mum's giving her company so your Iiving in living room won't matter that much.

Yes, in all seriousness, I also thought OP's best shot is to buy now with 5% and get a lodger or two. That is even 100% legal.

Whatever you choose to call it, she'll be back living with her mum...

There's also absolutely no guarantee it'll just be for a year - she could save for a year and still not find anywhere, and then be stuck with mum for even longer.

And she doesn't need to give up her tenancy to own a home - she can stay where she is, save for two years instead of one, and go from one secure property to the next - sounds like an absolute no-brainer to me.

OP waited five years to get the home she has. Why on earth are strangers telling her to give that up to go back and live with mum at 28 years of age?

I'd move in with your mum and then someone who actually needs it can have the flat.. you don't exactly need it

There are lots of reasons for the UK housing crisis.

Housing and living costs have meant you now need to have 2 people in work to be able to afford it. At the same time divorce rates are up, people are more reluctant to blend families.

A generation ago everyone lived in a married household, 2 adults, kids. Kids stayed there until married themselves. Now those adults may be divorced and each need a home that size to be able to share parenting time with the kids. They're not blending families so those families are taking double the housing stocks. And only one parent so harder to afford so they may have been able afford private owning/renting before but now at least one needs social housing.

The kids leave and go to university where they need to be housed. My city has thousands of student properties only occupied half the year by these young adults that require two homes.

We live a way of life that demand for family sized homes is increasing at a rate greater than simply population increase.

I was in a similar position to you - I had a council tenancy and wanted to move. I saved hard for a few years for a fat deposit, bought a home and handed the flat back to the council so they could give it to someone who needed it.
Stay where you are until you've secured a new place. If things don't work out for whatever reason (life just happens), you'll still have a permanent home.

No matter how well you get on with your mum - you currently don't live with her and it will be different , very different now you have been used to living on your own and been totally independent. Her house , her rules. You mention she wants the company but go on to say you work long hours so that will be an immediate bone of contention as you won't be as present as she thinks you will / should be.

I'm sure you have read all the threads on MN where people struggle even going back home for a week at Christmas with parents, let alone moving back full time !

Personally I think you would be mad to give up a council tenancy, this gives you security - much more than private rental,and while you can't save as much , you are still able to save and with a little more belt tightening could close the gap a little.

Even when you have the deposit buying a house can still take months / over a year so it really would be a long term commitment moving back home. What would you do if it didn't work out ? Private renting is more expensive, not as secure and your saving plans would be scuppered.

If it were me I think I would thank mum for her thoughtfulness but stick with your flat and keep saving.

Gosh No Do not give up your tenancy for anything.
My DS1 is single and has a tenancy due to family circumstances( He's 30 now) and I tell him the same.

I would normally say never give up a social housing tenancy but you need to weigh up the likely increase in house prices in the time you're at your mums against staying put and saving for longer. No point in staying but prices rose faster than you're saving. I think i'd make the leap now if I was 100% sure I would be able to buy at the end of one year and things are good living at your mums.

Have you fully costed re; owning a home though? Buildings insurance, mortgage plus all the usual bills you have now in your tenancy. You might need money to set up in your new home, removals, carpets, goods etc.
Plus all of the maintenance will be down to you so ideally you need a bit of a financial cushion on top of the mortgage costs. I would advise buying a two bedroom so you can get a lodger in to help with costs if needed.

I think it's quite risky. You have more security with a council tenancy than with your mother. If you fall out you will be homeless.

I am in a council flat now and have applied for rtb (put in the application last year before they cut the discount), as the discount will give me a decent bit of equity to move up the ladder in the future. I am in London so the discount is over £130k. It's what I would have suggested for you, only the discount is heavily reduced now so not sure if it's worth it.

Maximum discount is 16k now I believe

Are you sure that's the maximum discount? I believe the discount is 70% where I live so it would be sound financial advice to buy. Either way, do not move back in with your mum.

I live in a council property. Love it, and would never expect to have had it as a tenant. It has cost me a fortune as a leaseholder, and if I had ever had the chance to be a normal council tenant, I would have jumped at it. I completely get that those who have tenancies have had to be in difficult circumstances to be given them, but they are such an amazing thing - stable, reasonable rent, almost impossible to be evicted. Hang on as long as you can!

It's a shame you didn't submit an application when the discount was higher, as it locked in the higher rate. I've got neighbours who put in their applications in the month before it changed, but it'll take up to a year for the sales to go through as the council is overwhelmed with applications now, so they have that time to save and their finances ready for a mortgage.

If your mum is in a HA house, will she need to pay extra rent if you live there with her as a non-dependant?

On the other hand, she has no NEED to buy if she stays put. It's a desirable rather than a necessity.

Yes to all this.

Absolutely stay where you are. You can still save for a deposit. Will just take a bit longer. Would be madness to give up your council flat.

I have an irrational need for stability and to 'own' a home

I'd argue a council tenancy is a bit more stable than owning tbh - you pay your rent, if you lose your job or become too ill to work the state will pay your rent. You'll never be in negative equity.

I'm not saying dont buy - but you are, now, in a stable home for life if you want to.

I don't understand - and please excuse my ignorance - but wouldn't someone more needy benefit from the council house?

It's a lifetime tenancy. OP is perfectly free to stay there until she dies. She's not doing anything wrong by staying in her home.

Aah, ok. Understood.