IPA - how much rent is "reasonable"

betchen

Hi there

I'm planning bankruptcy in a month and looking to move into a new flat beforehand. I live on my own, but need 2 beds for when my girlfriend comes over with her kids.

My question is, If i move into a nice 2 bed flat for £700 a month, are they going to say that's too much for 1 person living on his own. It's not an outrageous price for the area of Leeds I live in but they could say I should get a cheap 1 bed flat for £400 a couple of miles away.

Obviously i don't want to be in a position where i'm paying an
Income Payments Agreement and have to make up £200 per month on a 12 month contract cos my living costs are "unreasonable"

Any advice greatly appreciated

sniggings

its really down to each OR to what they think is reasonable but as you say that it is the going rate in the area then it should be ok,like you say you need it for your GF kids,the OR can not tell you how to live unless its unreasonable which in your case seems its not.

iquit

Hi betchen, as sniggins said it's upto your OR in the end. I have read on other threads that ORs accept upto a maximum of £700 on rent/mortgage so you may be alright. Just know that you may have to explain yourself when you have your interview with the OR. Good luck with your BR and your future debt free life.

Merry_Gentry

How much rent are you paying at the moment?

peachyprice

iquit wrote: »

I have read on other threads that ORs accept upto a maximum of £700 on rent/mortgage so you may be alright. .

That's not quite right iquit, the OR will accept whatever is reasonable for your area and your needs, there is no limit, within reason of course.

betchen

thanks for all your help everyone.

I've been lodging in 1 room in a friend's house for £400/month all in, cos it's all i could afford with paying back debts.

Now the debts have become unmanagable, i'm going for BR and see it as a chance to live in my own flat like a normal person.:-)

Merry_Gentry

Will your gf be paying towards the new flat? The reason I ask is that if you are getting a 2 bedroom place to make sure there's room for her and her kids, you may well be paying over the normal range for a single person in your area and your OR may take this into consideration.

For example, if the normal rent for one person is £450, they might well think that £700 is too high.

betchen

nope, she won't be paying cos it's my house and she's got her own.

I can argue that it's not lavish, and 2 rooms is really useful, but can't argue that I NEED to spend that much on a house - after all, doesn't housing benefit work out at about £300 a month or something?

It seems from what you've all said that it depends on the OR but there is room for discussion, in which case i'll have to have all my justifications worked out beforehand !

peachyprice

How much is a 1 bed, is there much difference?

The OR doesn't look at housing benefit figures. They look at what is reasonable for you, in your area.

If a 1 bed is £600 and a 2 bed is £700 they won't be bothered.

If a 1 bed is £450 and a 2 bed is £700 they will be bothered.

The will have knowledge of rental prices in your area and will know what is reasonable.

peachyprice

betchen wrote: »

nope, she won't be paying cos it's my house and she's got her own.

In which case you don't need to provide a room for her child, you can stay at her house where there is room.

Merry_Gentry

betchen wrote: »

It seems from what you've all said that it depends on the OR but there is room for discussion, in which case i'll have to have all my justifications worked out beforehand !

It is down to your OR but if one bedrooms are a lot cheaper than 2 bedrooms, there won't be any justification - they will allow the norm for one bedrooms.