Buying a property while on social housing

aplacetolive

Mokka wrote: »

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.

So you can own a BTL on new rule?

Mokka

The best way to check is go to your LAs website and check their Housing Allocations policy. I know the policy where I live (central London) but that's not going to be helpful to you, is it? According to my LA policy you cannot own ANY property, even a holiday home abroad.

poppasmurf_bewdley

Most councils automatically run a check on The Land Registry to see if any of their tenants own property. As do HMRC and DWP.

leveller2911

Mokka wrote: »

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.

As I posted previously many Housing Associations have had these rules in place for over 20 years. Nothing new about the rules its just that some HA have only just woken up to how some tenants were abusing the system.

Typical Social housing landlords really, shutting the stable door after the horse has bolted.

leveller2911

poppasmurf_bewdley wrote: »

Most councils automatically run a check on The Land Registry to see if any of their tenants own property. As do HMRC and DWP.

The problem is people are still getting round the rules by 1 partner being on the tenancy agreement and the other partner is free to buy a house/flat somewhere else.

This should be via a BTL mortgage but some are on residential mortgages which is against the mortgage agreement.

MrChandlerBing

I sincerely hope that you can't do this. Ethically very wrong.

antrobus

poppasmurf_bewdley wrote: »

Most councils automatically run a check on The Land Registry to see if any of their tenants own property. As do HMRC and DWP.

Do they?

The Land Registry does indeed have an index of proprietors' names or IOPN. I expect that a LA could insist that a prospective tenant provide them with the neccessary authority to conduct a search on the IOPN, although since the IOPN search can't distinguish between people who happen to share the same name, further investigation might be required.

I'm rather doubtful however, that LAs would "automatically run a check on The Land Registry to see if any of their tenants own property" on a regular basis. IPON searches cost £11 a pop, so it would soon mount up.

Do you have some inside knowledge, or is this just something you've read somehwere?

aplacetolive

MrChandlerBing wrote: »

I sincerely hope that you can't do this. Ethically very wrong.

As I am a newbie, could you explain me how it is ethically very wrong?

When we will get council flat/house we won't be a property owner anywhere in the world. But after getting the council accommodation declaring everything ie savings, salary, family income, I mean related all things if we buy another property say after a year on BTL
how that would be wrong?

My understanding is we are trying to come out from council accommodation if you see my long term goal. Then another family will be housed in the same council property.

Am I thinking right? If I am wrong could you please explain me.

bigadaj

aplacetolive wrote: »

As I am a newbie, could you explain me how it is ethically very wrong?

When we will get council flat/house we won't be a property owner anywhere in the world. But after getting the council accommodation declaring everything ie savings, salary, family income, I mean related all things if we buy another property say after a year on BTL
how that would be wrong?

My understanding is we are trying to come out from council accommodation if you see my long term goal. Then another family will be housed in the same council property.

Am I thinking right? If I am wrong could you please explain me.

Most people would say the ethical thing to do is not to buy another house whilst you are in social housing. The honest thing to do would be to either buy straight away or save up money for your deposit whilst in social housing and then buy and move out freeing up that house for someone else.

What is your actual purpose. A btl normally requires a 25% deposit, so well above that you'd need for a residential mortgage and historically the reasoning behind btl has been that you cover your cost a whilst renting it out and the main gain is capital appreciation, particularly when you take into account voids, bad tenants, upkeep etc.

poppasmurf_bewdley

antrobus wrote: »

Do they?

The Land Registry does indeed have an index of proprietors' names or IOPN. I expect that a LA could insist that a prospective tenant provide them with the neccessary authority to conduct a search on the IOPN, although since the IOPN search can't distinguish between people who happen to share the same name, further investigation might be required.

I'm rather doubtful however, that LAs would "automatically run a check on The Land Registry to see if any of their tenants own property" on a regular basis. IPON searches cost £11 a pop, so it would soon mount up.

Do you have some inside knowledge, or is this just something you've read somehwere?

Let's just say that I know this happens. And none of the Government Agencies pay to access the information. It's available to them at the touch of a button. And they don't need to seek permission from the subject to do so either.