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Original poster

Stuck with our council flat

24 replies

ICantWaitAnymore · 02/02/2018 19:17

I'm so fed up, we recently tried to apply for a lovely rented 3 bed new build in a nice area. My partner needs a bedroom for an office and we have a rapidly growing 5 month old.

We got rejected due to a technicality with the reference checks on my partners income. He has the money there, it's not like we're having to scrape it together but the referencing company wouldn't verify a chunk of his income because it doesn't show that he's paid taxes on it (but he had earned under the tax threshold during that period so there was no tax to pay!)

I'm so upset - where we are now is not ideal, it's only a 1 bed flat and I know that any council properties that we could potentially be moved into will not be in nice areas like the private rented property we saw. These guys did stuff by the book (as did we) so if they rejected us then how on earth will we pass anywhere else??

I've heard too many horror stories about private and independent landlords to want to consider it at this moment.

Not sure what I'm posting for other than a bit of sympathy and maybe some constructive steps forward for this to not seem like a dead end. I feel cheated and keep looking at my gorgeous little boy and want to cry. Xx

OP posts:

EyreOfSophistication · 02/02/2018 19:23

Why would they give you 3 bedrooms with one tiny baby? Are you sure the decision was based on finances?

Original poster

ICantWaitAnymore · 02/02/2018 19:25

It was a private rented property that we applied for ourselves x

OP posts:

EyreOfSophistication · 02/02/2018 19:25

Sorry! I misread, its a private let!

PaperdollCartoon · 02/02/2018 19:27

Eyreofsophistication renting privately you can rent whatever size you like. OP is in a council house now but looking at private rentals.

OP talk to other estate agents now you know what there can be an issue with. There’s very strict affordability rules with private renting whole houses, usually rent can’t be more than 40% of take home income. Explain the issue and see if they can advise how you can build up the right info for future. There will be other houses, this just wasn’t the one.

PaperdollCartoon · 02/02/2018 19:28

I should add I left a secure housing association flat to rent privately and I don’t regret it.

ftmtb · 02/02/2018 19:31

Is there anyone who could possibly guarantor for you? I got a property myself even though I fell short for the affordability, because I had a guarantor who passed it didn't matter

Original poster

ICantWaitAnymore · 02/02/2018 19:32

Thanks PaperDoll, it wasn't a case of us not being able to afford it, we easily can. It's that they wouldn't verify dp's income as he's the director of his own company but not self employed. So to the letting agents it only looked like he had savings of just over £7 and no income when actually all added up he had over £28 including income and savings. He's not yet needed to pay tax because his earnings ran over the tax year. Xx

OP posts:

PhilODox · 02/02/2018 19:38

Well, it's probably because lots of people use directorships to fiddle mortgage applications, so people are far more circumspect about them.

Original poster

ICantWaitAnymore · 02/02/2018 19:39

Hi ftmtb, my partner earns the most of everyone we know. Without this stupid loophole he wouldn't be asked a single question but he has been asked if he can provide a guarantor who earns £25k upwards - dp earns more than this and we don't know anybody else who earns this amount that we could ask! X

OP posts:

Original poster

ICantWaitAnymore · 02/02/2018 19:46

I understand PhilODox, but surely after some digging they can figure out who is legit and who isn't? X

OP posts:

Spindelina · 02/02/2018 19:52

Can you offer to pay several months rent up front? We’ve paid for six months up front before (DH self-employed). That was a while ago though - not sure if they’ve got less flexible since then.

KennDodd · 02/02/2018 19:54

I wouldn't get too upset op. Just wait for another place to come up and a bit more time to pass to build up a good credit score. It's not as if you have any time pressure to find somewhere else fast.

I assume you didn't mean £7 or £28

Original poster

ICantWaitAnymore · 02/02/2018 20:00

Yeah sorry, £7k and £28k. And the time pressure is our son getting older, we barely fit in this flat as it is. Feels like the walls are closing in on us more and more as the days go by x

OP posts:

Original poster

ICantWaitAnymore · 02/02/2018 20:01

Spindelina, we did offer to pay up to 9 months upfront but as it looks like he only earned £7k to the letting agents then they won't accept it without a guarantor. X

OP posts:

Spindelina · 02/02/2018 20:06

Oh, that’s a bit crap. Back when we were renting, there was a bit more flexibility.

specialsubject · 02/02/2018 20:49

Ask to speak to the landlord. If you have run a home before, don't smoke, no pets and have a kid ( so will want stability) and can afford it with explanation, he may well be sorry to miss you. As long as he can get his insurances.

Original poster

ICantWaitAnymore · 02/02/2018 21:01

Specialsubject, would this still apply if the landlord is a company rather than an individual? Xx

OP posts:

specialsubject · 02/02/2018 21:49

You can but ask - worth a call. Best of luck!

PaperdollCartoon · 02/02/2018 23:58

If he’s earned £28k over the last 12 months he has earned enough to pay tax. The tax free allowance is only £11,500. Even if that ran over 18 months I’m pretty sure he still should have officially declared earnings?

Jon66 · 03/02/2018 00:04

As a landlord, providing you paid a years rent upfront, I would accept you and most landlords would grant you a years ast. Having the money upfront is a better bet for a landlord than having it monthly from anyone! One of my tenants couldn't meet the income threshold but had no problem paying upfront. If you pay the 2nd years rent into a savings account during the first year, you can do the same thing the 2nd year.

Primarkismyonlyoption · 03/02/2018 00:09

Sorry to not take a factual approach but it wasnt meant to be op.
I understand as i am in council. I found a perfect exchange for a better area (village) which fell through. I was gutted.
Three months later the dvla medical people made me stop driving. Then my daughter changed schools to a further one. I am still in the same house, i am grateful for it, i can live with it but sometimes think about 'more'.
It will happen when its right x

NurseryFightClub · 03/02/2018 06:41

Does he pay himself more in dividends, he could take his tax return next time to show total income, or do you have three years signed off accounts?

shouldwestayorshouldwego · 03/02/2018 06:52

I understand the frustration. We want to move but need to sell first. Can you formulate a plan of action? You know now what you will need to prove, over what time span do you think you can amass the evidence? Is there anything else you can do with your existing flat - swap rooms around etc so you have maybe a bigger bedroom /office and smaller living room to make it easier to separate off during the day. Declutter? Do more research into different areas look at schools - you probably won't want to move again before primary applications.

MrsPatmore · 03/02/2018 07:23

I know you want to move from your current flat but don't be seduced by private rentals. You have total security of tenure where you are with, I presume, a low rent. Private landlords can ask you to move on at anytime outside of the assured period. Have you contacted the Council? You should be entitled to a two bed now you have a child.

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