Rent and affordibilty checks

MikeRB_2

Myself and my wife are looking to rent in the local area and houses are around £850 a month for something with 2 beds and a garden for our little one.

I am working full time and today the council confirmed we would be entitled to £400 a month housing benefit.

Great I think as it means we can rent a reasonable house.

However, when I contacted one agent, they told me they work at 30x salary and don't take housing benefit into account.

This means we could only afford a property in the local area of up to £650 a month which to be honest, may buy us a small flat.

Is this a standard practise with all agents? I've never rented before so not really sure what to do. Surely, they should take housing benefit into account otherwise I'm not really sure what the point of the benefit is as you still need to be a high earner to rent anything suitable for a family.

Any advice for me short of telling me to get a better job? also, my wife wants to stay local as her dad has been ill recently and wants to be local to him.

£850 is easily doable with the housing benefit.

BitterAndTwisted

Don't forget that LHA rates are going to be reduced early next year. It would be horrible to take on a property thinking you could just afford it and then you can't. Where would the rent come from then?

Not all letting agents apply the same criteria to calculate what's affordable so perhaps try a different one or see if you can rent direct from a landlord

MikeRB_2

That's helpful, thanks.

Is it a case of contacting all the local agents to see what their criteria is? Affordability shouldn't be a problem with the LHA, we should take home around 1900 with my salary.

tomitma

I think that you will find that practically every LA in your vicinity will say no to LHA (housing benefit) you may be better skipping the agents and looking for your own house, through newspapers, free ads or shop windows.

The estate agents are a law unto themselves maybe the LL will accept LHA but the agents wont.

Another idea is putting your own advert in the local papers and shops.

Good luck

MikeRB_2

Thanks.

Whats LA mean?

Also, would these letting agents likely accept say 6 months rent up front in lieu of passing an affordability check? We have savings and would happily pay rent in advance if it meant getting the property we want.

tomitma

letting agent

tomitma

MikeRB wrote: »

Thanks.

Whats LA mean?

Also, would these letting agents likely accept say 6 months rent up front in lieu of passing an affordability check? We have savings and would happily pay rent in advance if it meant getting the property we want.

Yes I think that many letting agents would accept this. But this will cause you trouble with housing benefits. If you have paid the rent 6 months in advance, housing benefit can say well the rent is paid for the next 6 months come back after 6 months.