Chapter 5 Section 1
Buying a home Two-thirds of people in the UK own their own home. Most other people rent houses, flats or rooms.
Mortgages People who buy their own home usually pay for it with a mortgage, a special loan from a bank or building society. This loan is paid back, with interest, over a long period of time, usually 25 years. You can get information about mortgages from a bank or building society. Some banks can also give information about Islamic (Sharia) mortgages.
If you are having problems paying your mortgage repayments, you can get help and advice. It is important to speak to your bank or building society as soon as you can.
Estate agents If you wish to buy a home, usually the first place to start is an estate agent. In Scotland the process is different and you should go first to a solicitor. Estate agents represent the person selling their house or flat. They arrange for buyers to visit homes that are for sale. There are estate agents in all towns and cities and they usually have websites where they advertise the homes for sale. You can also find details about homes for sale on the internet and in national and local newspapers.
Making an offer In the UK, except in Scotland, when you find a home you wish to buy you have to make an offer to the seller. You usually do this through an estate agent or solicitor. Many people offer a lower price than the seller is asking. Your first offer must be ‘subject to contract’ so that you can withdraw if there are reasons why you cannot complete the purchase. In Scotland the seller sets a price and buyers make offers over that amount. The agreement becomes legally binding earlier than it does elsewhere in the UK.
Solicitor and surveyor It is important that a solicitor helps you through the process of buying a house or flat. When you make an offer on a property, the solicitor will carry out a number of legal checks on the property, the seller and the local area. The solicitor will provide the legal agreements necessary for you to buy the property. The bank or building society that is providing you with your mortgage will also carry out checks on the house or flat you wish to buy. These are done by a surveyor. The buyer does not usually see the result of this survey, so the buyer often asks a second surveyor to check the house as well. In Scotland the survey is carried out before an offer is made, to help people decide how much they want to bid for the property.
Rented accommodation It is possible to rent accommodation from the local authority (the council), from a housing association or from private property owners called landlords.
The local authority Most local authorities (or councils) provide housing. This is often called ‘council housing’. In Northern Ireland social housing is provided by the Northern Ireland Housing Executive ( www.nihe.co.uk ). In Scotland you can find information on social housing at www.sfha.co.uk . Everyone is entitled to apply for council accommodation. To apply you must put your name on the council register or list. This is available from the housing department at the local authority. You are then assessed according to your needs. This is done through a system of points. You get more points if you have priority needs, for example if you are homeless and have children or chronic ill health.
It is important to note that in many areas of the UK there is a shortage of council accommodation, and that some people have to wait a very long time for a house or flat.
Housing associations Housing associations are independent not-for-profit organisations which provide housing for rent. In some areas they have taken over the administration of local authority housing. They also run schemes called shared ownership, which help people buy part of a house or flat if they cannot afford to buy all of it at once. There are usually waiting lists for homes owned by housing associations.
Privately rented accommodation Many people rent houses or flats privately, from landlords. Information about private accommodation can be found in local newspapers, notice boards, estate agents and letting agents.
Tenancy agreement When you rent a house or flat privately you sign a tenancy agreement, or lease. This explains the conditions or ‘rules’ you must follow while renting the property. This agreement must be checked very carefully to avoid problems later. The agreement also contains a list of any furniture or fittings in the property. This is called an inventory. Before you sign the agreement, check the details and keep it safe during your tenancy.
Deposit and rent You will probably be asked to give the landlord a deposit at the beginning of your tenancy. This is to cover the cost of any damage. It is usually equal to one month’s rent. The landlord must return this money to you at the end of your tenancy, unless you have caused damage to the property.
Your rent is fixed with your landlord at the beginning of the tenancy. The landlord cannot raise the rent without your agreement.
If you have a low income or are unemployed you may be able to claim Housing Benefit to help you pay your rent.
Renewing and ending a tenancy Your tenancy agreement will be for a fixed period of time, often six months. After this time the tenancy can be ended or, if both tenant and landlord agree, renewed. If you end the tenancy before the fixed time, you usually have to pay the rent for the agreed full period of the tenancy.
A landlord cannot force a tenant to leave. If a landlord wishes a tenant to leave they must follow the correct procedures. These vary according to the type of tenancy. It is a criminal offence for a landlord to use threats or violence against a tenant or to force them to leave without an order from court.
Discrimination It is unlawful for a landlord to discriminate against someone looking for accommodation because of their sex, race, nationality, or ethnic group, or because they are disabled, unless the landlord or a close relative of the landlord is sharing the accommodation.
Homelessness If you are homeless you should go for help to the local authority (or, in Northern Ireland, the Housing Executive). They have a legal duty to offer help and advice, but will not offer you a place to live unless you have priority need and have a connection with the area, such as work or family. You must also show that you have not made yourself intentionally homeless.
Help If you are homeless or have problems with your landlord, help can be found from the following
• The housing department of the local authority will give advice on homelessness and on Housing Benefit as well as deal with problems you may have in council-owned property
• The Citizens Advice Bureau will give advice on all types of housing problems There may also be a housing advice centre in your neighbourhood
• Shelter is a housing charity which runs a 24-hour helpline on 0808 800 4444, or visit www.shelternet.org.uk
• Help with the cost of moving and setting up home may be available from the Social Fund This is run by the Department for Work and Pensions (DWP). It provides grants and loans such as the Community Care Grant for people setting up home after being homeless or after they have been in prison or other institutions. Other loans are available for people who have had an emergency such as flooding. Information about these is available at the Citizens Advice Bureau or Jobcentre Plus.