Renting A Small Apartment (Can I afford?)

gohan2091

I'm in my late 20's, currently living at my grandparents home, with no bedroom of my own, sleeping on the sofa. (I know ) I have a few grand in the bank, I work 20 hours a week part-time at a local supermarket which earns me £550 a month.

I'm looking to move out and rent a small apartment. Prices in Norwich seem to range from £350 - £450 for a one bedroom apartment without bills. Shared accommodation ranges from £300-£400 often with bills included. There is a 1 bedroom, unfurnished studio down the road from here at £325 per month, plus an extra £20 a month for water. There is a £203 fee, £500 deposit plus the first months rent to pay up front. Housing benefit is allowed providing I have a guarantor.

I contacted the local council to ask about housing benefit. I am able to get the shared 1 bedroom rate of £59 a week (£239 a month) however, I am not sure if I can afford even a small place like this on my own. I am not sure of the electricity and gas costs, I would need to pay for Broadband (and line rental) too and obviously food at about £100 a month but I don't really have any other financial commitments. Can anyone tell me if I can afford this? I have enough savings to buy furniture and appliances.

Thanks in advance

Owain_Moneysaver

Electricity and gas will depend a lot on what sort of heating there is and how well-insulated the flat is, but could be £30-50 a month.

Have you costed for:
- council tax
- television licence

Can you find a place direct from a landlord and avoid paying fees to an agency (who are already paid by the landlord and it's a conflict of interest for them to take fees from you as well, but that doesn't stop them).

pmlindyloo

I think you have misunderstood.

You are eligible for the shared accommodation rate as you are under 35 but this is the maximum amount you would get. Since you are working your income will be taken into account and you will not get the full amount.

You can put your details into the benefit calculator on https://www.entitledto.co.uk to find out the HB and CT reduction you are entitled to.

Your best option is to increase your hours or get a second part time job, sorry.

Pixie5740

Once you've worked out what you're entitled to, if anything, use this statement of affairs calculator to put together a budget. That should give you a better idea of what you can afford.

http://www.stoozing.com/calculator/soa.php

gohan2091

pmlindyloo, I was under the impression that I would be entitled to the full shared amount because I am on low income. I now know this is wrong. I want more hours but apart from the occasional overtime, my hours won't increase. Another part-time job is something I am looking out for but ideally I want one full time job.

I filled in the entitlement checker linked above. One question mentioned "Household savings or capital over £6,000?" which would be true for me. How does my savings effect my housing benefit entitlement? It is likely my savings would almost be gone by the time I buy furniture, appliances. I plan to learn to drive and get a car too. It says my housing benefit entitlement is £12.39 per week. When I say I don't have savings over £6000, it goes to £20.19 per week. This is a lot lower than I was expecting. I am also entitled to 12p off council tax a week.

I used the calculator Pixie shared and this is not looking good financially. With a rate of £30 for electricity, £20 for water and £30 for gas, £13 for TV license, £15 for broadband, £20 for phone, £10 for mobile, I would be about £20 out of pocket each month. Some of these figures are pure guesses since I can't accurately know for now the charges.

Pixie5740

Maybe a room in a shared house is the way to go then.

That said you don't need to go out and buy brand new furniture and appliances. Check out sites like Freecycle and Fregle, as well as Gumtree and charity shops (British Heart Foundation is good for electrical goods).

gohan2091

Shared accommodation seems to be my only option unless I am able to get more hours or a better paid job. Yes, Gumtree is a site I was thinking of buying furniture from but there is no need now if I go to shared accommodation (unless the room is unfurnished)

Thanks all for the comments.