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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

to think you shouldn't live in HA/council house and then buy an "investment property"

59 replies

humptynumpty · 09/01/2010 22:24

Am totally at friend who has suggested we buy an investment property. Fair enough, is a great idea, but we live in a housing association property and somehow doesn't feel right to buy your own house, rent it out and make money, while keeping your housing association property too.
AIBU?

OP posts:
pooexplosions · 09/01/2010 22:27

YANBU. if you can afford a house, buy it and let someone else have the HA property.

Original poster
humptynumpty · 09/01/2010 22:31

that's what i thought
this "friend" is proud of fact she has own property rented out and making money, plus her own ha property plus her partner also has ha property in next town.
she must have lied on application form, cos can't understand how you can require housing if you have own property. her own flat is rented room by room to her mates, so not like she would have been out on the street....

OP posts:
Original poster
humptynumpty · 09/01/2010 22:33

BTW have no idea why she thought we should buy any property, no way we could afford it or be eligible for a mortgage (sorry just clarifying)

OP posts:
whooosh · 09/01/2010 22:33

I would like to think this was ficticious,but sadly I think not.

PussinJimmyChoos · 09/01/2010 22:33

This sort of thing really pisses me off.

I know of someone who lives in a council flat but bought two properties to rent out!

I was so annoyed I contacted the council to see if this was actually allowed and guess what -yes it is!! I could tell that the council person didn't actually approve of it, but it isn't against the law

whooosh · 09/01/2010 22:35

But surely savings and income are taken into account when being granted a housing assoc property?

Original poster
humptynumpty · 09/01/2010 22:36

whooosh trust me i am raging. So apparently technically there is nothing to stop you doing it, but I couldn't, wouldn't be right

OP posts:
MadameDefarge · 09/01/2010 22:37

I would think that contravenes your housing assoc tenancy, it would certainly invalidate any local authority housing.

Original poster
humptynumpty · 09/01/2010 22:38

whooosh no, there is no place on the form to declare or disclose your financial situation. You only need to give details to get housing benefit.
But basically because HA properties are highly sought after, your personal circumstances are what is taken into account e.g. being homeless, getting evicted, etc

OP posts:
Paolosgirl · 09/01/2010 22:39

I don't think they are - I know someone in a HA flat in Glasgow. He and is wife are earning quite a bit in excess of the average. They got the flat while he was earning less, admittedly, but now their circumstances have changed I would kind of like to think they'd move on to let someone else in real need benefit from their minimal rent.

SparklyGothKat · 09/01/2010 22:40

I know someone who claimed to be a single parent, living with her mum, while her partner has properties that he owes. He moved straight into the HA flat she was given. Brand new building too. I was saying to DH that they could live in one of his properties.

PeachyWillNeverVoteBNP · 09/01/2010 22:44

Hmmm, probably agree its wrong but....

We're not in HA but rented and will probably buy something in a few years- but could never buy something big enough for us all atm (very few large houses here, so a premium).... we will probably buy a much smaller house, rent it out then move in with ds3 (who will need care) when the others leave home. Is that ttheir plan? I could sort of understand thatif its the only hosuing they can accrue.

Original poster
humptynumpty · 09/01/2010 22:49

peachy I totally understand what you're saying. I just don't agree with this "friend" who basically shows off because between her and her partner, they have 3 properties, 2 HA and 1 owned, including 1 HA flat which they claim housing benefit on. She also claims single persons allowances etc and single mothers child benefit for their child to get more money.
Fucking pisses me off. If you want to cheat the system then good luck to you, but shut the fuck up about it.

OP posts:
Paolosgirl · 09/01/2010 22:50

I think if it's private rented and you're not taking a low-cost rental property away from someone who really needs it, then it's no problem. HA flats are often highly sought after, and I really do think that they (and local authority housing) should only be for people who are really struggling financially. If/once you get on your feet, you move on to let someone else benefit from the same resource that you benefited from, surely?

icancancan · 09/01/2010 22:53

it is right that you can own/buy property after you have been allocated social housing as for many people their financial circs may change over the long term ie; inheritance, job promotion etc. however, morally, it seems wrong. I seem to remember recently that there are proposals to assess social housing tenants every 5 years and if their circs change, ie they become property owners, they will have to forfeit their social housing.

whooosh · 09/01/2010 22:57

So.....Xp left me and DD in MArch,I "own" our home.Could I rent this out,claim to be homeless and get HA place?
I have no income,not claimed benefits yet as this has only just happened,XP pays nothing towards DD....if I could do this then great......

ImSoNotTelling · 09/01/2010 23:03

HA has been opened up around here due to lack of affordable housing so that people with good jobs etc can get in.

I know people in housing assoc properties within the rules who have no children and earn decent money. Has totally changed from say 10 years ago when there was list and you had to be eg single parent with nowhere to live to go to the top.

Maybe it is like that?

Otherwise it does seem off, but I was surprised when i found out recently on MN that once you get social housing then you keep it even if you get a fab job or whatever and can afford own house. So I don't really know much about this stuff it turns out!

ruebenjames · 09/01/2010 23:05

OOooh this makes me so mad! When I split with my Ex p , he stayed in our mortgaged house. I applied to the local council for affordable housing and was told I wasn't allowed on the list as I owned mu own property! I was told if I had nowhere to go then dd and I should move back into our home. (even though Exp was living there with his evil gf, I was told to boot her out)
How are these people getting away with that???

skidoodle · 09/01/2010 23:05

Ownership of property should mean you lose your entitlement to HA/council housing.

I don't think families should be booted out of their homes if their circumstances improve, as that leads to sink estates where only people in the worst situations are housed and there is an incentive not to improve your financial situation.

But if you own a house then you don't need to take up a place another family could use and you should be expected to live in the house you own.

ImSoNotTelling · 09/01/2010 23:09

Ah well I think it would be better if social housing was mixed in with private housing, it happens round here a fair bit and os really good.

And if people's circs improve they should be assisted into HA property to get on housing ladder freeing up space for people more in need.

chegirlsgotheartburn · 09/01/2010 23:09

This happened quite a bit when I lived in a trendy but v.deprived inner london borough.

I knew of several people who did it.

One couple had a HA flat each and owned a big place out of London. It was in a very nice part of the country and I think the aim was to scuttle off back there when the children had to go to secondary.

They both worked for local government and were involved in political party.

I was in council at the time. Everyone in my social group was in inadequate housing. It wasnt a game for them to be in social housing, it was a grind. The housing stock was crumbling and families were still be placed in B&B at the time.

I think the down market version of this scam is crap too - subletting.

brettgirl2 · 09/01/2010 23:10

I don't know....

Suppose someone has to live in London for their job and can only afford to live in HA flat.

Does that mean that if they buy another property in a different area, rent it out to give them somewhere to move to in their dotage it should not be allowed?

Isn't that just improvement, making sure you are comfortable in retirement like anyone else would? Otherwise surely the poor stay poor?

Owning a house in say, Preston is not much use if the only job you can find is Wandsworth.

ruebenjames · 09/01/2010 23:12

Then surely you should sell your Preston house and buy one in Wandsworth?

brettgirl2 · 09/01/2010 23:14

But you probably couldn't afford to? Housing in Preston is much cheaper. Of course if you could then that is different.

ruebenjames · 09/01/2010 23:16

It makes me really mad that people manage to cheat the system, and the bloody system has no interest in helping people who try and help themselves.

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