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Original poster

FTB: stay in social housing and rent out a small property?

121 replies

CorStrewth · 23/04/2023 12:12

I know this may be contentious but I believe completely legal.l and appreciate I'd have to check Ts and Cs of my rental.

Currently have a great social house, I've been a social tenant for 17 years and through being a good tenant was able to get a better and bigger house when I needed it 8 years ago.

Now DH and I have built our careers and looking to be FTB. We would go from £500 in rent to 1k-1.5k per month. I'm toying with the idea of buying a small property I.e. 1 bed flat and renting out, not necessarily for profit but to have that asset and essentially not costing me anything, kind of like a business venture, staying in our SH until we have a good deposit for a house to live in.

Are there any reasons financially why that may not be a good option? I have two children settled in school etx so downsizing and living somewhere smaller for a little while isn't as feasible as it would have been if we'd bought before having kids.

Thanks again, great advice yesterday re: FTB in current times

OP posts:
readbooksdrinktea · 23/04/2023 13:28

Just because you can legally do something, it doesn't mean you should.

readbooksdrinktea · 23/04/2023 13:29

BeetrootBeetrootGhali · 23/04/2023 12:35

I’ve said it before and I’ll say it again…

I’m so glad I’m not a UK taxpayer. You guys seem to have a very fucked up system.

I'm with you on this.

Toddlerteaplease · 23/04/2023 14:45

Lavenderlaze · 23/04/2023 12:16

It would be a disgusting move.

Absolutely this.

Babyroobs · 23/04/2023 15:10

BeetrootBeetrootGhali · 23/04/2023 12:35

I’ve said it before and I’ll say it again…

I’m so glad I’m not a UK taxpayer. You guys seem to have a very fucked up system.

We do if this is allowed. Most people are genuinely honest people though and wouldn't even consider this.

Babyroobs · 23/04/2023 15:17

GGBOY · 23/04/2023 12:58

Some of these threads are unbelievable lately .

Makes me think most are just a wind up really. So op benefits from cheap housing for years and now she can afford to buy she wants her mortgage paid off by others rent? unbelievable.

Hell121 · 23/04/2023 15:18

Jesus Christ was an utterly immoral thing to do

Hell121 · 23/04/2023 15:19

And totally agree @BeetrootBeetrootGhali which is why we are leaving this country

Ilikewinter · 23/04/2023 15:25

Theres no way this OP is for real. Ill wait for it to be shut down.

Tidsleytiddy · 23/04/2023 15:40

Absolute cheeky fuckery

MissMaple82 · 23/04/2023 15:42

Firstly, no it absolutely is NOT allowed, secondly, you'd be a nob for actually doing so.. for multiple reasons!

Original poster
CorStrewth · 23/04/2023 16:29

I knew this could be contentious but as this isn't AIBU I didn't expect such vitriol!

I'm just in a panic that if we don't buy something soon we may never be able to buy with prices increasing on everything so much and wondered if it would be a savvy move to buy a low cost property to rent out while saving for a larger home but as pointed out we would then lose out on FTB assistance/incentives and I'm aware landlords have other costs.

What I didn't know was that BTL mortgages were different, so that's interesting thank you and food for thought if we ever look into doing that.

We're just at the start of exploring our options, no need for troll hunting!

OP posts:
Killingmytime · 23/04/2023 16:34

i personally think it’s disgusting
there are people begging for a home and you have one you do not even need.

Whichwhatnow · 23/04/2023 16:37

No comment in the ethics of it (think that's been dealt with!) but I think it's very doubtful you'd be allowed. Definitely not allowed in my HA although I appreciate the rules may vary.

ohsuzannah · 23/04/2023 17:18

What's wrong with just staying where you are and saving? Going by your OP you could save £500 a month!

SirVixofVixHall · 23/04/2023 17:22

qpmz · 23/04/2023 12:15

I think if you have the money to buy a house, the council house should be given to someone in need.

This.
Is it even legal ? I doubt it somehow .
If it is legal, it certainly isn’t ethical.

Teacoaster · 23/04/2023 17:35

Social Housing Manager here. Your tenancy agreement should stipulate a clause about your secure social housing property being your main or only home. Your landlord most likely was given funding by the government to build your property on the condition it is given to those unable to afford private rent or buy their own home. Does your tenancy give you the option to buy the property your in?

By all means buy your own property, but vacate it on completion because there's a massive waiting list for people who need affordable housing options.

OnlyFoolsnMothers · 23/04/2023 17:37

Pull up the ladder OP and sod the rest!

OnlyFoolsnMothers · 23/04/2023 17:38

Why wouldn’t you just buy and live in it- it’s then an asset and a home

GiveInToTemptation · 23/04/2023 17:42

@NewNovember

Dismissed as a stupid idea why who?

As for 'no aspirations' you could say that about anything (e.g. should we stop giving out benefits in case it affects claimants aspirations? Should we stop taxing higher earners with the additional rate in case it affects their aspirations?).

At the end of the day, that's how the country works, people who earn more are penalised by the tax system, and those who earn less take more out. Why should social housing be any different? I think that higher earners in social housing should pay higher rents. The extra money could be used to fund community projects and build more social housing.

strawberry2017 · 23/04/2023 17:45

What an utterly selfish thing to do.

blondiiiee · 23/04/2023 17:52

My friend did this

Council property in her name

Bought a 2 bed flat in hers and her husbands name and rented it out so they had a property and income.

Not fair but not my business.

Their 3 bed council house in west London is absolutely huge and on the same street, houses sell for over 1 million. They pay £138 a week!

But they had 5 children 20 years ago when it wasn't as hard to get a council property as it is today!

Coffeeandbourbons · 23/04/2023 17:55

Yeah do what you want just think of the small children who would love a home that you’re deriving for some immoral cash

Coffeeandbourbons · 23/04/2023 17:55

Depriving

VanCleefArpels · 23/04/2023 17:55

Unless you have a 25% deposit and at least the equivalent of 6 months rental income already available as cash (to cover expenses and possible voids) you cannot afford to do this (plus hundreds of other reasons why being a BTL investor isn’t great at the moment). You would be far better advised to invest in your pension rather than being fixated on owning a property if you are in a stable housing situation at the moment. It’s really difficult to live off the state pension alone especially if you own your own home and therefore have maintenance costs etc.

Snowpatrolling · 23/04/2023 17:59

In my area you are not allowed to be in social housing if you own a house.