Renting new / more expensive flat after BR?

user1979

I was declared bankrupt last week at the High Court, and am currently unemployed (and have been living on JSA for the last 6 months). I therefore don't see how a IPA can be applied to me in my current situation.

My tenancy is coming up soon and I'd like to move.

My question; When I get a new job, if I were to continue living at my present flat, when I start work (my career pays quite well), an IPA would be put in place and last for 3 years, right? Losing approx half of my disposable income.

However what's to stop me moving (obviously after finding a landlord that will accept a BR) to a more expensive flat so that I won't have any disposable income after rent/bills/travel costs? Will the OR be able to object to me moving from a £800pcm flat to a £1300pcm flat? I live in London and that's far from extravagant.

Anyone else had experience of this?

If I'm not to have any disposable income for the next 12 months, I'd rather be living in a nicer place!

Doucam

So just to make sure I am reading this right, you want to move to a more expensive place so you don't have to have an ipa?

I would have thought that unless you really need to move, ie need more room, being evicted or something then the OR would object to a £500 hike on rent tbh, I may be wrong though, I am sure someone will come along soon to advise.

user1979

But you have to notify the OR within 21 days of moving, if you move then notify the OR what can they do? Evict you? I don't see how that's possible. I could easily justify moving based on my tenancy running out and moving to an area nearer wherever I find work. By starting work again my living costs will rocket anyway, with travel costs (London travelcard £140 z1-4, more for 1-6) especially if I have to commute to say Brighton (~£450pcm), having to pay council tax etc.

Doucam

Well I suppose if you can justify it with travelling costs and so on then it would be ok, but I would just be very careful that's all, I expect there are things the OR can do if they feel you are trying to pull the wool over their eyes!

Good luck with the job hunting anyway!

user1979

Thanks. Having been made BR it certainly makes getting back to work easier - e.g. being able to take a lower-paid job without a mountain of monthly repayments to make, which would make it financially not worthwhile.

fiveyearplan

In the long run moving to a place £500 more per month would probably be more expensive - what if you lost your job how would you pay that kind of rent then? £1,300 per month rent for one person is quite a lot of money anyway - even for London.

dmg24

user1979 wrote: »

But you have to notify the OR within 21 days of moving, if you move then notify the OR what can they do? Evict you? I don't see how that's possible. I could easily justify moving based on my tenancy running out and moving to an area nearer wherever I find work. By starting work again my living costs will rocket anyway, with travel costs (London travelcard £140 z1-4, more for 1-6) especially if I have to commute to say Brighton (~£450pcm), having to pay council tax etc.

In that case it would not affect your eligibility for an IPA, so why ask the question?

As others have said, if you have a justifiable reason for moving, which could save you money, the OR is unlikely to object as it will not change your position. If you are moving in order to avoid an IPA, you should expect the OR to take action. They are far from stupid!

I would examine your motives for moving. If they are legitimate, there is no reason why you should not discuss this with your OR before moving.

user1979

Should that happen, I'd be able to find a flatmate and rent out the study. (should Housing Benefit not cover the rent if I were made redundant again)

After 12 months, my BR will be over... at roughly the same time as a 12month tenancy agreement would be. Then I'd move to a cheaper place anyway. So whilst the rent would be higher than I'd ordinarily pay, I'd rather it go there than get stuck in a 3 year IPA. (And for a 2bed place, £1300 isn't excessive. I live in zone 4 of north London and pay £800 for a tiny 2 bed place with no central heating - that's far cheaper than the average local price of around £950. Should I move into zone 2, it'd be very difficult to find something similar for less than £1200.)

Has anyone on the board moved house and had problems with the OR because of increased rent?

user1979

dmg24 wrote: »

In that case it would not affect your eligibility for an IPA, so why ask the question?

As others have said, if you have a justifiable reason for moving, which could save you money, the OR is unlikely to object as it will not change your position. If you are moving in order to avoid an IPA, you should expect the OR to take action. They are far from stupid!

I would examine your motives for moving. If they are legitimate, there is no reason why you should not discuss this with your OR before moving.

What legal powers would the OR have if I had moved, signing a 12 month lease, before informing them of my new address and SOA? I legally have 21 days to inform them of change of circumstances.

fiveyearplan

Why would you want to commit yourself to that much rent?

user1979

fiveyearplan wrote: »

Why would you want to commit yourself to that much rent?

Because for 12 months I'd rather live in a nicer place than have it taken from my salary to pay an IPA. £1300 pcm is really not a high rent in London (within a half-decent area within zone 4). I have friends in Hammersmith paying £1200 for a one bed flat that isn't very big at all!