Poor credit rating and house rental (should I give up and claim benefits?)

[copycara]

So, long one... We are renting a house, have been renting since 2010 - in this house since 2013. The landlord has issued us a Section 21 and we need to be out from May 19th. The issue is that both my partner and I are self employed, him for 2 years, me for 1. I'm the main earner, but my earnings have dropped by £500 a week (turnover) since the last time I was self employed (freelancer). He has been out of work since pretty much May last year, though we have been paying childcare as he could get work at any time and has had the odd month here and there.

When we took on the house we are in now, I was PAYE and on my salary alone we passed. We have to prove that we earn 2.5 x the annual rent.

So we found a house, thankfully slightly cheaper rent than where we are now (which is 2300 a month). And we had to pay a holding deposit that was £900 - a week's rent and all the referencing fees.

The referencing has been done and we failed. They didn't even get as far as asking our accountant to verify our earnings. We have poor credit history due to 2 pregnancies in 3 years and my last baby having been very poorly. Before I get judged, I had a perm job, and I went back when she was 5 months old simply because we couldn't pay the bills unless I did.

So we have a little over a month until the landlord expects his property back. And we are unable to secure another home. Oh - and we will not get the £900 back that we paid to the letting agent on the house we put an offer in on. We have also paid several hundred pounds for the accountant to prepare accounts for us to validate our earnings.

The local housing office have said that with my earnings, it's unlikely they will do more than put us in temp housing and introduce us to landlords they work with to try and secure another private let. But we will face the same issues and if they deem we can't afford it (at 2.5x the annual rent) they will force us out of borough or even out of London.

I have 4 kids. 2 from my first marriage - who I receive nothing for (that's a whole other post). The eldest is half way through her GCSE syllabus - so moving her school would be awful timing. And my ex would take me to court if I tried to move them far away.

I really feel like we have no options. I have just secured a 3 month contract, but I hate it. My partner has no prospect of work though both of us are applying for 10-15 jobs per week, both self employed and PAYE.

I did a benefits calculator - telling the truth - and we were entitled to nothing. I did one saying that I was sick and unable to work, and that he wasn't working - and it came back that if we would both take jobs paying minimum wage and working 30 hours a week, with that and all the benefits we could get, we would earn more than we did last year with me busting my a** and paying 2k+ a month rent. I'm currently undergoing some invasive tests and there is a chance it could be the big C. The stress of this has bought my psoriasis out like mad, I can't sleep, I can't eat and honestly, I think my GP would happily say I am not well enough to work. But where would that leave us, would they help us?

I've worked my whole life. I've paid taxes since I was 16 and I'll be 40 this year, and it seems there is no help unless we give up completely. It just seems so wrong. But I can't be on the streets with 4 kids. We are already having to rename the dog, it's literally heartbreaking.

It is of little help but that is indeed your only option. Councils are supposed to assist at expiry of section 21 but as there is almost no housing ( population rocket, right to buy) they don't. In fact, if you leave early they will jettison you. Crazy, isn't it.

Barnet are quite explicit about having almost no housing.

You commit no civil or criminal offence by staying until the bailiffs, and your tenancy does not end until the bailiff. Your rights and the landlord obligations continue. The process can take up to a year in London.

Op

PLEASE call the Royal British legion - they will help you, not just advise you but actually help you get accomodation

Call today

@QuiteLikely5 we definitely will do, have been on their website. We are legally liable for the rent and housed in our current place until May 19. So we are covering all the possibilities at the moment.

I have today applied for housing benefit too.

@specialsubject it really is crazy, they said we have to wait for the Section 21 to expire, then for the landlord to go to court and get permission to evict us, then for the bailiffs to actually come - then they will help. The issue with that is the stress that process will cause to us all, and the relationship breakdown that will occur between us and the current landlord. We will be made liable for his costs, which clearly won't help our situation either and we will never see a penny of the deposit we paid when we moved in. We have really looked after the house and I was hopeful we would get it all back, which would have paid a month's rent on a new place.

But they have said if we leave before Bailiffs come, we will have made ourselves intentionally homeless and they won't have to help.

I just find the whole thing so sad, that we are better off accepting defeat and claiming benefits. I have worked in my industry 18 years and I'm well paid, but as a family, we would be better off if I was to let the Dr sign me off and then eventually get a minimum wage job. Sure, we would have less stress, a council house and more disposable income, but what about pride and setting a good example to our kids?

With all his driving experience would he be able to work as a delivery driver, maybe with something like deliveroo? It may not be a long term solution but will help pay bills. They're recruiting in London I think.

He is applying for delivery jobs, multidrop van ones. As well as forklift, chauffeur, HGV. Some need you to have your own van, or take costs of renting one out of your earnings, so you end up on less than minimum wage. Amazon does this. He has applied to the supermarkets for their delivery roles too. But nothing. I suspect because he is overqualified. We even have 2 versions of his CV now for different types of job.

I face it in my industry too, I have asked to be put forward for contracts paying half what my day rate should be, and been told no. Even for 2 weeks roles. When I have asked why people wouldn't want someone who can do the job with their eyes closed for the price of someone who needs micro-managing, I was told that they look for people who can stay on a rolling basis if needed, and being overqualified they won't take the risk that you will leave if something better comes along. Rock and hard place...

Hey, i know the last time you wrote has been now a bit long ago, I litrally read all of the comments and couldent help myself to ask how have things gone for you? Would love to know how you doing and if you finally found the solution to all your problems😊

@Mysticallight, you have to tag the OP (as I have done to you).

Iv recently bidded on a council housing association house . The advert said it was for 5 newbuilds and I was position 2 . I checked last night still position 2 , checked again this morning and the advert has gone and theres nothing on my account about the bid does this mean I'm not being offered one ?