Buying a property while on social housing

Morglin

Most new tenancy agreements, for social housing, include a section where you have to declare that you own no other property.

Some councils require details of any savings, investments and income. Most new tenancies are for a year only (probationary period) and there is talk of 5 yearly reviews (although that might just end up being the usual hot air from the government).

Of course, if you purchased the house, after getting the tenancy, they may not find out, but you would be risking eviction.

There is such a shortage of social housing that councils are getting ever tighter with their rules.

Lin

aplacetolive

Jack_flash wrote: »

Even if you are still eligible, earning £1200 from rent will hopefully be enough for the council to take the house away from you.

Read some time ago, a restaurant owner who has 3/4 houses living in council flat legally. It was on newspaper.

aplacetolive

Morglin wrote: »

Most new tenancy agreements, for social housing, include a section where you have to declare test you own no other property.

Of course,mid you purchased after getting the tenancy, they may not find out, but you would be risking eviction.

There is such a shortage of social housing that councils are getting ever tighter with their rules.

Lin

Still have not heard though if anyone been evicted after purchasing a property while on social renting. More knowledgeable forum member might know.

leveller2911

aplacetolive wrote: »

Read some time ago, a restaurant owner who has 3/4 houses living in council flat legally. It was on newspaper.

More than likely to be he is running a BTL business. BTL is classed as a business and so it doesn't stop someone from being eligable for Social Housing.

The moral question would still be why buy/own a property on a BTL business when he/you can afford to buy a house to live in. With BTL they generally want a 25% deposit and rented out for something like 125% of the mortgage.

Social housing is for those in genuine need not those who feel they are entitled.

If you do become a Social Housing tenant ,you will be breaking the rules if you then purchase a house with a residential mortgage but rent it out to a tenant.Nothing to stop you being allocated a Council House and then a few months later buy a house and move out of the Council House but you can't have both. Its called being selfish and greedy.

I can assure you the Housing Association/Council will evict you from your Social Housing.

Morglin

aplacetolive wrote: »

Still have not heard though if anyone been evicted after purchasing a property while on social renting. More knowledgeable forum member might know.

No, I don't know if anyone has, as these new rules are fairly recent.

Lin

leveller2911

Morglin wrote: »

Most new tenancy agreements, for social housing, include a section where you have to declare that you own no other property.

There is such a shortage of social housing that councils are getting ever tighter with their rules.

Lin

Its been in the tenancy agreements of Housing Associations for over 20 years and a good job too.

davidmcn

leveller2911 wrote: »

Its been in the tenancy agreements of Housing Associations for over 20 years and a good job too.

I can understand conditions that you must use the social housing as your main residence, and criteria that exclude lettings to people who already own a house, but I haven't encountered conditions saying you cannot later acquire other property. Can anyone cite an example?

antrobus

davidmcn wrote: »

I can understand conditions that you must use the social housing as your main residence, and criteria that exclude lettings to people who already own a house, but I haven't encountered conditions saying you cannot later acquire other property. Can anyone cite an example?

As far as I'm aware, CH tenants can only be evicted if there are grounds, and as far as I can see, 'owning another property' isn't one of them.

http://england.shelter.org.uk/get_advice/eviction/eviction_of_council_tenants/grounds_for_evicting_council_tenants
http://www.compactlaw.co.uk/free-legal-information/public-housing/grounds-for-possession-council.html

Of course, you can get evicted for telling fibs about your circumstances in order to get the tenancy in the first place.

And these days (as alluded to above) a lot of councils are switching to the new flexible tenancies, which are periodic, and may last (say) five years. So it's likely that is what you would be offered by your council. Which would mean that if 'not owning another house' was a condition of offering a tenancy, you wouldn't be offered a renewal after your five years was up.

Mojisola

aplacetolive wrote: »

Our circumstance is, atm privately renting, in a year or two we might get a 3 bedroom council flat/house. We are also saving up deposit for a house to buy near future. Are we allowed to buy a house just after getting the council flat? Say after 6 month.

Although I don't think the RTB should ever have been brought in, it is there for tenants. In your position, I would be saving up and planning on buying the council house when you meet the conditions.

If you end up with a council flat, it may not be the best plan.

lighting_up_the_chalice

davidmcn wrote: »

I can understand conditions that you must use the social housing as your main residence, and criteria that exclude lettings to people who already own a house, but I haven't encountered conditions saying you cannot later acquire other property. Can anyone cite an example?

No. Because the requirement simply doesn't exist. You can pick up the keys to your SH property on Monday and buy the Dorchester on Tuesday and there is nothing anyone can do about it. Unless you transgress one of the specific grounds, none of which will dictate what you legally do with your own money, it would never even get as far as a Judge.

Of course, if a tenant has secured a SH tenancy by providing false or incomplete information..... well..... that's another matter altogether. The loss of your tenancy would be the least of your worries if that was the case.