Give up Housing Association Assured tenancy to buy a House?

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Hi all,

I have been reluctant for some time to seek some advise on the above because I have seen similar questions on forums dismissed and turned into a debate on morals. These type of responses can be really unhelpful and I would really appreciate answers/experiences that will help to assist. (I am not relying on forums alone).

So the background is as follows: I have lived in housing association for 20+ years. My tenancy is secure (assured) and i am more than grateful.The properties i have lived in have always been lovely but my journey hasn't been without it's problems, (sure i'm not alone) and has meant that i have had to move a couple of times. My current home is a lovely 2-bed house with a drive on a small close of houses. The close itself isn't the cleanest unfortunately, but the neighbors are all lovely. The area has fantastic transport links as it is and is going under regeneration with the arrival of the cross rail.

I have always been an anxious person and lacked self confidence in myself which has led me to live in a bubble of procrastination and being indecisive such as starting UNI late because I thought i wasn't clever enough to participate or pass exams etc. Oddly when i actually do take action in my life the results have been positive and even then i doubt myself and ask how i achieved that. But purchasing a home feels like a whole different ballgame and i think it's mostly the fear of giving up a secure tenancy to losing a home.

Anyway enough rambling. So, with the last 20+ years there have been small pockets of opportunity, in which I have managed to save some money. Around 2016 probably was the peak. I am now also in a better financial position than in my former low paid role of 8yrs. I say financially better but far from minted.

I now have what some would say a healthy deposit to purchase a property but not in London (no surprise there) where i currently reside. My money would take me comfortably to somewhere in the West-midlands (no family or friends) where my rent here would be my mortgage there but even the WM is going up. Other places i have considered are Kent and Essex but these areas are more expensive and rapidly increasing and it would mean that i would very likely have to consider a lodger to help if i were to live comfortably.

I am single, in my early 40's, have a young adult child who would not even entertain these area's and would probably move in with his grandparents, so while i consider these area's, lodger etc, i also consider feeling potentially isolated as having my family in close proximity means a lot. Also not sure this is the best time to buy or if there ever will be a "best time" factoring that i am not getting any younger, and waiting may leave me with know options with house prices soaring.

The idea of owning my own home outright one day is my drive, but as mentioned above there are a few things to consider as areas continue to out price people. I don't even care to buy in London but the outskirts are also looking pricey. If i do buy further out can I ever get back in?

So thoughts please, do I stay in HA (rent under £500) - save more, invest in something else, take a leap of faith, noise dive, plunge, tip-toe, find a husband who will move with me to the W.Midlands yadayadayada.

Comprise is the obvious here but just wanted some thoughts on this.

Soz for the essay.

Do you have the RTB on your property?

No judgement from me. In your shoes, I would stay put. You sound like you love where you live, despite some shortcomings, and you have the support of family and friends nearby. Why would you give all that up?

I’d stay put and seek financial advice on making the most of the money you have saved.

I will have a similar dilemma in a few years. I might finally 🤞🏻 be in a position to buy but will also be early 40’s and currently renting (HA) in an expensive (to buy) area. I wouldn’t consider moving out of area as we are very settled here with good jobs, family close by and children settled in good schools. House prices are increasing rapidly right now here so it might not be possible anyway.

Hi guys, thank you for your prompt reply @Fruityfriday, no rtb and not even right to acquire.

@umbel thank you for not judging. Yes friends and family is what i am really wrestling with but also if i don't buy now then i should really invest but not sure what in. I have a Help2buy ISA account, but the banks says you can't operate 2 ISA's in the same tax yr or something like that.

Hmm.

Without knowing all the details, from what you have written I personally would look at buying a retirement home & renting it out until I was ready to move into it. I lived living in london (renting), but moved out to buy a house, & can't afford to move back now 😢

Where I live (SE) is expensive and I could get SO SO much more house for my money, but I appreciate having good friends nearby (this past year especially. I've not been seeing them, but knowing they're nearby if I did need anything has been very reassuring).

The price people I know pay for their HA housing, I don't think you're doing anything bad by renting from them & still being able to save, it's not like the old council housing (IMO).

@Mayvis thank you for sharing your similar experience very helpful - I haven't yet sought financial advise as I was concentrating on buying a house. I will definitely look into this to see alternative opts.

@TheThingsWeAdmitOnMN

Hmm.

Without knowing all the details, from what you have written I personally would look at buying a retirement home & renting it out until I was ready to move into it. I lived living in london (renting), but moved out to buy a house, & can't afford to move back now 😢

Where I live (SE) is expensive and I could get SO SO much more house for my money, but I appreciate having good friends nearby (this past year especially. I've not been seeing them, but knowing they're nearby if I did need anything has been very reassuring).

The price people I know pay for their HA housing, I don't think you're doing anything bad by renting from them & still being able to save, it's not like the old council housing (IMO).

It's not actually possible to buy a buy to let if you don't own a property already, unless you have a huge deposit.

Stay where you are. Without a doubt. Being close to your friends and family is so important. Moving to another part of the country as a single person at your age is a huge upheaval.

Also, how about shared ownership?

I think if you buy away from London you probably need to do so in the expectation that you won't later be able to afford to buy in/close to London. If you opt to move, I'd do so expecting to settle in your new location (or, at any rate, in a non-London location).

What other factors are there that you need to bear in mind? Would you be needing to find a job in the new location, and if so is your line of work one that would be easy to find a suitable role in elsewhere? What sort of place generally would you like to live in - close to a city, or to the country, or anything else in particular? I'm sure there are other places than the West Midlands that you could afford (nothing against the West Midlands but you don't have any ties there so why limit yourself?)

Have you looked into seeing if your HA offer money for giving up the tenancy ?

In the late 90's my parents were given £7000 from the HA. They were living in a cheap area, so the house was £49,000 so it was a large chunk towards it

stay put is my advice.
Why move away from your child and friends just to own a house. I would invest savings and build them up or buy a house to rent out in a cheaper area if you really want to be a home owner.

Why dont you look at a BTL in another area? Or purchase, but stay in your current home?

That way you'll get the security of knowing you are on the ladder with the benefit of rental income and a return on investment on your capital?

Obviously comes with risk of house prices falling but long term it maybe something worth thinking about.

Those saying about buying a BTL - that could go against your current tenancy agreement as you’d then own a property.

I don't think home ownership for the sake of it is always the best choice, especially if it means moving alone to a place simply because of cheaper house prices.

You have a young adult child that would prefer to stay in London. How would you feel in a few years time if they have children? Would you be regretting not living nearby?

Your current housing situation sounds great to me. What exactly is it about home ownership that appeals to you?

@omgwhy

Why dont you look at a BTL in another area? Or purchase, but stay in your current home?

That way you'll get the security of knowing you are on the ladder with the benefit of rental income and a return on investment on your capital?

Obviously comes with risk of house prices falling but long term it maybe something worth thinking about.

You can't buy a buy to let if you don't already have a property unless you have a huge deposit

love that MN blurbles on about how they hate landlords, but the first suggestion for someone with money is BTL.

OP, go lurk on landlordzone for a while and see what can go wrong with BTL - and it will only get worse.

interest rates are dreadful because the government wants you to piss your money away.

you won't be able to return to the southeast if you leave. Consider that. I don't see why you shouldn't stay where you are if you are happy.

I would stay put and invest in a good pension and stocks and shares ISA

@TheThingsWeAdmitOnMN . I completely understand where you're coming from re: family nearby. During Covid restrictions, like many, i've not been able to have the same face to face interaction/hugs with my family and friends unless via a zoom/whatsapp video call. But it's still comforting knowing that they are down the road. Plus with my parents getting older its nice to know that i am not too far to help out.

With regards to purchasing a retirement home, whilst nothing in my tenancy or in policy, my HA may very well sanction me by eviction. I know someone else who queried by to let investment and was told that even if its not in their Tenancy or Policy the view is that you shouldn't purchase a home whilst in social housing and they could get evicted. I wouldn't even attempt to ask. Would be petrified lol. Will have to consider an alternative.

@AntiHop thank you for your input, very helpful and yes the factors re: age, single, the upheaval are very important. With regards to Shared Ownership - I am petrified, people always tend to shut it down referring to the rent/mortgage/service charge and selling stage. I have friends who have also done it and told me to avoid if possible. That said i'm sure it hasn't been all bad so if anyone has had a positive outcome or any advise i am open to hearing as opts is needed.

I would stay put until the teenager leaves for uni or whatever, and then make your decision.

I agree you can't love in social housing and get a buy to let... there is something not right with that.

But equally don't move away from all you love.

In my area Shared ownership arenwlvery common and a valid option so don't discount them. If you have a key worker role that can be favourable when looking to purchase a new SO property.

@murbblurb Thank you for your input. re: BTL i've heard the issues from both forums and family. Some will say nothing good comes without issues, but whilst i welcome the advise, BTL is something i'd prefer not to get into. If i was younger and had money at the time, and knowledge about property investment then maybe, but not now. I know a few people who have had no issues as such, and others who have had a complete migraine.

@MattyGroves thank you!!! I will look into this...

Stay put definitely. Start investing using a fund such as Investec or Brewin and Dolphin. I have steadily seen returns averaging 8% a year but you have to be prepared to ride out the ups and downs...when Covid struck last year my portfolio crashed 30% but immediately started recovering and is now at a high. I put money in when it crashed and have been rewarded....I'm not a sophisticated investor.

Prob don't look at buy to let as loads of hassle and tax treatment poor

@Sunflowergirl1 Thank you for your advice and recommendations. I have never heard of the following: Investec or Brewin and Dolphin. I will look into and research this!

Just out of interest has anyone done an interest only mortgage?

Stay put. Moving purely because you can afford a mortgage somewhere random, rather than somewhere you have ties to, seems madness.

A secure tenancy is worth lots and you never know how circumstances can change and a mortgage could become unaffordable.

@umbel

No judgement from me. In your shoes, I would stay put. You sound like you love where you live, despite some shortcomings, and you have the support of family and friends nearby. Why would you give all that up?

This is what I'd do too. Owning isn't everything, the main benefits being security and being able to treat the place as you're own, both of which you have already. If you're wanting to invest in something for your child I'd look into that. Or just enjoy your money!