Buying a property while on social housing

BigAunty

AFAIK, the social housing allocation process BEFORE getting a council/HA property may have strict criteria around capital/ownership that affects priority and entitlement, also perhaps during the probationary period (not sure).

During the tenancy, the tenancy agreement usually has strict rules about the social housing property being the primary residence and living elsewhere is a significant breach of the agreement.

I am not aware of any requirement in social housing law or social housing tenancies that forbid the tenant from buying a holiday home or BTL property, nor checks as to changes to the financial status or capital of the tenant post-probationary period.

AliceBanned

A BTL property would be classed as a business so I doubt it would affect you social housing. But whether or not you have bought before you get a council flat, you need to divulge all your financial details including any savings.

I had a social housing (secure shorthold tenancy) flat in the past, and it was quite far away from my work so this made life difficult; travel was also costly. I still looked into buying it under right to buy but as it was concrete construction I couldn't do this. I couldn't afford to buy near to work (London) on the open market either, so bought a shared ownership flat and gave up the housing assoc flat - hopefully to someone who needed it more as by then I had saved a deposit so felt good to move on. You don't need a social housing flat for ever if you have at least an average wage, as you should be able to save even if slowly.

At the time of being in the social housing flat for years I was trying to get on the property ladder and thought of perhaps saving up to buy a flat abroad, and eventually selling so that I at least wasn't getting more and more priced out. I could also have bought a place elsewhere in the UK as BTL but found that I needed 40% deposit - you may find that this is the case.

I am happy with the shared ownership for now as it allowed me to live in the right location rather than a place I was allocated by the council, and at least I have some equity and can build on that.

Social housing costs usually around 2/3 of private rental, but depending on your circumstances sometimes private rental is better (ie whether you are on your own etc). I wouldn't recommend putting anything on hold due to social housing - it isn't the golddust some people think it is - it can bring its own problems. My landlord was particularly bad, despite being "social" housing - they let neighbours run riot, literally day and night. You may be lucky and you may also desperately need the social housing, but if you don't I wouldn't hang too many hopes on it, I would just look at all your options, including living in a place you can buy much further away and putting up with a long commute for a few years.

BigAunty

aplacetolive wrote: »

Future budget:
Social renting £650 month
Mortgage £850 month 6% interest
Buy to let rent £1200

That is not a budget, that's merely a line of 3 basic expenses plucked out of the air, devoid of most other expenses and all income.

For a real personal budget download the MSE budget planner.

You will not experience a buy to let income of £1200 pcm - mortgage of £850 pcm = £350 pcm if that's your idea of a budget. Interest rates may change, there's the risk of void periods, repairs and rent arrears, perhaps legal fees associated with evicting a bad tenant. There's also things like landlord's insurance for the property, possibly annual gas safety checks, letting agent fees, tax on rental income, landlord association fees.

To understand property taxation and expenses (and also housing/landlord law), you will find the Landlordzone website very helpful.

aplacetolive

Thanks a lot everyone for valuable advice & comment.

Morglin

leveller2911 wrote: »

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

Not all, as I rented a place from a HA in the last 6 years, albeit through a side scheme they had running, and it's not on my tenancy agreement, but I think it's pretty general now to be included.

Lin

fullmoon_2

I am just curious, can OP buy a BTL property before getting the Council flat? Someone wrote here BTL is a business. Will council refuse the OP for accommodation?

davidmcn

fullmoon wrote: »

I am just curious, can OP buy a BTL property before getting the Council flat? Someone wrote here BTL is a business. Will council refuse the OP for accommodation?

Anyone is entitled to apply for council housing, but it seems unlikely to me that a BTL landlord will be prioritised on the waiting list. As explained above, means testing is involved.

geri1965_2

thequant wrote: »

That's not a breach, it's called taking the !!!!!!

Ha! I was trying to be diplomatic.

I agree though.

Eviesmummy

[QUOTE=AliceBanned;I_wouldn't_recommend_putting_anything_on_hold_due_to_social_housing_-_it_isn't_the_golddust_some_people_think_it_is_-_it_can_bring_its_own_problems._My_landlord_was_particularly_bad,_despite_being_"social"_housing_-_they_let_neighbours_run_riot,_literally_day_and_night._You_may_be_lucky_and_you_may_also_desperately_need_the_social_housing,_but_if_you_don't_I_wouldn't_hang_too_many_hopes_on_it,_I_would_just_look_at_all_your_options,_including_living_in_a_place_you_can_buy_much_further_away_and_putting_up_with_a_long_commute_for_a_few_years.[/QUOTE]

THIS!!!!

Having been in desperate need of social housing in the past and having had a long wait to get it, I feel very strongly that those who can afford to buy their own property should do so, and not take up the precious few properties that are available.

That aside, council properties aren't always as wonderful as they seem. After a long wait we were offered what seemed like the ideal flat. Nice area (most of the other properties in the st had been bought), lovely neighbours and a generous size 1960's ground floor flat. It was in horrible condition, but a lot of elbow grease and paint later and it looked lovely. It wasn't until we'd been in a few weeks that the mould started to grow. The kitchen was constantly covered in it, food went bad in a matter of days, all the furniture in 3yr old daughters room had to be throw out after 6 months because it was growing fur, as did bedding, pillows and toys on a regular basis. I had the building inspector out at regular intervals but because it was condensation not rising damp they wouldn't do anything about it. The only advise was put the heating on and keep the windows open, all things I was doing as well as having bought two big dehumidifier units that ran 24 hours a day. Nothing solved it. I couldn't wait to get out of there.

Mokka

As other posters mentioned a lot of councils have a rule that you can't own property and have a council home. These rules are new- they were introduced after I t got my flat and I don't think they can be applied retrospectively. However if you are getting your house now you will need to sign the new agreement/comply with the new rules and if you are in breach of these rules then the consequences can be quite serious.
Some councils have a maximum income for eligibility too- basically it depends on where your live and what your particular LA's rules are.