Renting a place monthly cost of 1,500

[Newbee123]

I need some help here. I don’t understand see me and my husband are thinking of renting a place (currently living with my parents) so our budget is 1,300. Two bed. We found a place for 1,500. Affordability Criteria: £45,000. My husband is on a £66K yearly wage. I do not currently work only some days if my mum keeps my toddler but so a 0 hour contract doesn’t really count. So it’s all on hubby until bubba goes school. But 1,300 is the max we can afford ! So how is a 1,500 Affordability Criteria: £45,000??! I don’t get it we can’t afford that even on £66K ? How does it work ?

It doesn't take into account family size - it's a blunt tool. So someone single with the same income can afford it more easily (ha) than a family of 3 on the same income.

How have you decided your maximum is £1300? Is there anything suitable available for that price, also would there be other knock on costs eg longer commute?

Do you have a lot of other expenses? On £66k your DH will take home around £4k pm so you'll have £2.5k for all your other costs which seems plenty.

But are you looking to buy and how is the arrangement of living with your parents going? Eg if you stayed with them for a year or two and saved hard, could you have enough of a deposit to buy?

I would not waste my money on this...

Instead I would focus on saving for a deposit for your own home as your partner has a decent salary.

Can you stay where you are for a year and save?

If you are talking about how the estate agent calculates affordability. It’s probably a bit like how a mortgage lender would. Your husband has two dependents, you and your child, and that lowers affordability considerably.

When we were looking at mortgages they would lend my OH 17% less because I do not work, adding a child on would decrease it further.

The affordability criteria is an amount equal to 30 x the monthly rent. Some Letting Agents and Landlords won't consider tenants who have an income lower than this, as they assume they won't be able to afford it comfortably and therefore a risk. Not all rented property have this criteria though.

What are your remaining expenses?

2.5k left after rent for a family of 3 with no childcare costs is definitely doable.