Bankruptcy/IVA's rent limits

HarryRamshackle

Hi

Sorry if this had been answered elsewhere on the forum but I've been searching for the last day with not much success.

Basically my landlord has given me a soft notice that he wants to sell his currently place. I was incredibly fortunate to find this place at its current rent rate and I doubt very much that I'll find as good a deal again.

I have also got myself in a pretty bad way with debt in the last few years following a messy separation and am looking at various options including DMP/IVA/BR.

The current rent market in my city Bristol for a one bed apartment is roughly between 650-850 pm depending on area/quality/size. Even without ccj's or am IVA or BR on my current credit record I'm concerned that I'll have to pay more to secure a property even at this point.

Will entering an IVA or BR set limits to the amount of rent I can pay (I'd ideally look to more before starting either but don't want to move somewhere that then creates problems further down the line).

Thanks
Har

thevdm

I believe there are certain limits, although not set at a specific level. If the amount you are paying is sensible for the area then it will likely be fine. On the other hand if you were paying 2,000 a month for a 1 bed flat in an area where the average rent was £400 a month then they may say something. This is based on information I've briefly skimmed through in the past, as I live in a council house I didn't stop to read it in full.


Edit: Just found this on Debt Camel - https://debtcamel.co.uk/bankruptcy-qs-or-make/


It makes it sound like the amount of rent you pay is not something the OR cares about, as long as you show proof of how much you pay then they are unlikely to look further into it.

Clouds88

You wanting to rent in Clifton?! My friend rents a 3 bed house in knowle for £825 I’m sure you could get something at £600. If you didn’t mean Bristol then I apologise lol

WhenIam64

For a guide to what the government *thinks* rents should be as opposed to what the market says it should be, have a look at Local Housing Allowances

https://www.bristol.gov.uk/benefits-financial-help/local-housing-allowance

A 1-bed comes out as £557.14 which in effect becomes the floor for rents in the locality. A 3 bed is £807

TheGardener

Rents are fixed costs and there are no limits as such but the OR will expect your rent to be 'reasonable'. This is a flexible figure but 'reasonable' would mean accommodation that is suitable for the size of the household so if you are single and renting a large 3 or 4 bed house or living in what could be viewed as luxury accommodation might not be seen as reasonable.

The OR would expect that the rent is close to the area average rather than the cheapest you can get. A key issue would be that paying over the area average for large or luxury accommodation is likely to mean you would still struggle after any sort of debt solution.

If you are going to have to move and if its possible - I would start saving for a larger deposit (rather than paying credit debts) - have you sought assistance from one of the debt charities yet? Its also worth getting a good reference from your current LL - is your rent in arrears?

HarryRamshackle

Thanks for the helpful comments and advice.

Thankfully I'm in a good place with my current landlord he just doesn't want to rent his flat to four independent tenants as he's had to find 6 new lodgers in the last 12 months. Because of this I don't want to go down the road of shared situations again as it feels too precarious and having to scramble together another deposit/fees every 12 months isn't attractive. I'm hoping if I can find a decent landlord that will not be put off by my current credit rating/history that would be a first step to taking steps to get debt free. I've never missed any rent payments although had s falling out with a previous landlord over water damaged caused by burst pipes.

I'd ideally like to stay reasonably close to a network of freinds and family and I am genuinely looking for the most reasonably priced options but the market is fairly limited in a city like Bristol and there's pressure to find somewhere fast.

HarryRamshackle

Having googled "average one bed rent price Bristol" the too two results were £795 and £814

Are those likely to be figures the OR will consider reasonable?

Clouds88

If you rent a place for that much then I’m sure they will alllw that. However, as I was curious about this being from Bristol myself I rent on right move and there were so many between £500-700 so I think you obviously want a champagne lifestyle on a lemonade budget.