Can afford the rent but failing affordability checks – any advice?

Landlord Discussion
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I’m a bit nervous about posting this as I’ve seen some quite judgemental responses on similar posts, but I’m genuinely looking for advice.

My landlord has recently served notice because they intend to sell the property. I’ve lived here for seven years, and the rental market is so different now compared with when I first moved in. My circumstances have changed too.

I’m looking for a three-bedroom property for myself and my three children. In my area, the average rent is around £2,200 per month.

I currently receive Universal Credit and PIP. Before anyone jumps to conclusions, I previously worked and fully intend to return to work when I’m able. In the meantime, I’ve made sure I can comfortably afford private renting. I budget very carefully, have a good savings buffer, and have a homeowner guarantor in stable employment.

I’ve been a reliable tenant for seven years. I have never missed a rent payment, have always looked after the property, have even paid for improvements myself where appropriate, and my current landlord is happy to provide an excellent reference. I also have a good credit history.

The problems I’m running into seem to be more about the referencing process than my actual ability to pay.

For example (using made-up figures), if a property required a gross income of £54,000, someone earning that salary would take home around £41,877 after tax. If someone instead received £50,000 through Universal Credit and PIP, that income isn’t taxed, so their disposable income could actually be higher. However, several letting agents have told me their referencing systems can only input a gross salary figure. They can’t account for non-taxable income, so the affordability calculation doesn’t accurately reflect what I actually have available each month.

I’m also finding that some agents or landlords lose interest as soon as they hear I receive Universal Credit, even before looking at my overall financial position, references or rental history.

I also receive child maintenance, but I’ve deliberately excluded it from my affordability calculations. If it were included, my affordability would be stronger. However, it’s a voluntary arrangement rather than one through the Child Maintenance Service, and I don’t know whether landlords or referencing companies would consider it reliable. I have a good co-parenting relationship with my children’s father and don’t want to jeopardise that by pursuing a formal arrangement when he already pays more than would likely be assessed.

Finally, my guarantor only just misses the required income threshold. One letting agent was happy to accept two homeowner guarantors (my parents) to meet the requirement, but unfortunately that particular property wasn’t suitable for my children. I haven’t found many others willing to take the same approach.

I started this process feeling quite optimistic because I know I can comfortably afford the rent. However, after speaking to agents and repeatedly coming up against these hurdles, I’m becoming increasingly worried that I won’t be able to secure a home for my children despite having the means to pay.

Has anyone been in a similar situation, either as a tenant or a landlord? Is there anything else I could be doing, or anything I should be saying to agents or landlords to improve my chances?

I’d really appreciate any constructive advice.

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@Anonymous10

Are you in england, wales, Scotland or NI? (Different regimes)?

You say you can afford the rent but the affordability checks say you cant. Here are things you can try

Negotiate with current LL to stay longer. Ask them if they will consider selling with you in situ (just because they are selling doesnt mean you have to leave unless they serve the relevant notice) - some investors may be happy to buy a place with good paying tenants who take care of a place and pay on time.

Try looking for somewhere cheaper eg in a different area, smaller (or a flat not a house)

If you are offered it as part of referencing, provide open banking access - this will look at your actual incomings and outgoings, so will show how well you are managing your £

If you can evidence how much child maintenance would be if formal/enforced, maybe include at least that much of the maintenance you get. Tho frankly if it tips you over the threshold of affordability, you could try including the full amount

Consider offering to pay for a rent guarantor company eg

If a property "isnt suitable " consider whether it can be made suitable with some adjustments and discuss with LL contributing to cost of those?

Get back to work as soon as you can. The s8 notice for selling (in england) is 4 months. If landlord then has to apply to the courts to evict you that takes a further period (nb you become liable for those costs)

More radically - consider whether the father (or one of your guarantors) can house one or more of the children at least temporarily - at least as a backup plan

If you are at risk of becoming homeless ask Shelter for advice

Good luck

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Thanks for your response. I’m based in England.

I have spoken to my landlord about staying longer and also whether they would consider selling with me in situ. Unfortunately they are looking to release funds and don’t want to delay the sale, although they did say they would consider it if an offer came from someone interested in buying with tenants in place.

I have looked at flats and smaller properties, but unfortunately in my area they’re often not significantly cheaper, and the ones that are tend to go extremely quickly. I’m keeping an open mind on location and property type, but I haven’t had much luck so far.

I’m quite flexible when it comes to making a property work, but the one I mentioned wasn’t suitable due to significant safety concerns around the stairs, which I couldn’t overlook with children.

I’m also trying to avoid staying beyond the notice period if possible. Whilst I understand there are protections in place for tenants, I’m conscious that needing to go through the eviction process could make future applications more difficult and I’d rather resolve this by finding somewhere suitable.

My family would not allow me and the children to become homeless, but that would create additional complications. Moving in with family would affect my current UC housing element, and although it could potentially be reinstated when I rent again, I worry that the disruption and change in circumstances would make referencing more difficult in the short term.

Thanks again for the other suggestions. I’ll definitely look into open banking, rent guarantor companies and whether there are ways I can better evidence my affordability.

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It’s a long shot but FWIW, a three bed house with gardens front and back can be had up in the northeast where I am for under £1,000 pcm.

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