Should I move in with a friend who is on benefits?

flossIsBoss

Hi MSE crew, my friend and I are both living alone but struggling with costs so proposed to move in together. By doing this we can save some money, and as we are best mates we can enjoy living together. I earn 3x the rent of the sort of properties we are looking at so I think I’m an attractive enough prospect. My friend has a business which makes enough to cover the rent but is also on benefits/universal credit/dss, or whatever it is called these days! I know officially we can’t be discriminated against but in reality, landlords do have the final say. We can both provide guarantors.

Will my friend being on benefits make it difficult for us to find a property to rent?

Will living with someone on benefits affect my credit rating?

Would it be reasonable to ask my friend to get a job so we can secure a tenancy?

Thanks!

Leggitte

I am not an expert on this, but the first thing I would check is if your friend would lose some or all of his benefits if you move in together.

General_Grant

flossIsBoss said:

Hi MSE crew, my friend and I are both living alone but struggling with costs so proposed to move in together. By doing this we can save some money, and as we are best mates we can enjoy living together. I earn 3x the rent of the sort of properties we are looking at so I think I’m an attractive enough prospect. My friend has a business which makes enough to cover the rent but is also on benefits/universal credit/dss, or whatever it is called these days! I know officially we can’t be discriminated against but in reality, landlords do have the final say. We can both provide guarantors.

Will my friend being on benefits make it difficult for us to find a property to rent?

Will living with someone on benefits affect my credit rating?

Would it be reasonable to ask my friend to get a job so we can secure a tenancy?

Thanks!

The highlighted question -  as long as you do not have a joint bank account with them, you should not be linked to them by credit reference agencies.  That would apply whether or not they were on benefits.

theartfullodger

Are you happy for your financial details to be shared with benefit agencies in relation to friends benefit applications?

dimbo61

The problem for Landlords is dealing with your friend who is claiming housing benefits.
This can take weeks to set up and is then paid to the Tenant and not direct to the Landlord.
If a LL has to wait 2/3 months to receive the rent do you think the mortgage lender will understand ?

Annisele

So far as your friend's benefits are concerned, living together as "best mates" might not affect their benefits - but if they're receiving UC, living together as a couple definitely would. I don't know what would be taken into account in establishing that, but I'd imagine that if you're renting a one bed property it'll be assumed that you really are a couple.

If you can easily afford the whole of the rent on your own, landlords might not be too fussed about your friend's financial situation. But if you rent a place jointly, you will both be equally responsible for the whole of the rent - from the landlord's perspective, there will be no "flossIsBoss's half" and "floss's friend's half". So if your friend can't pay their half, you will have to pay all of it and then chase your friend for reimbursement.

Just living with somebody as friends won't affect your credit rating, but if you have any joint financial products that will. And if your friend can't pay the rent, and you don't pay "their share", then you might end up with a CCJ against you - which most definitely would affect your credit rating.

HotPantsCruiser

dimbo61 said:

The problem for Landlords is dealing with your friend who is claiming housing benefits.
This can take weeks to set up and is then paid to the Tenant and not direct to the Landlord.
If a LL has to wait 2/3 months to receive the rent do you think the mortgage lender will understand ?

Why don`t they just give it straight to the landlord?