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Your top questions about housing answered
How should you deal with a rent increase? Is it worth waiting to buy a home? Housing experts respond to your most common queries.
As the saying goes, there’s no place like home – but more of us are exploring what that might look like as living costs rise. To help you weigh up your options, we put forward your most-asked questions to three housing experts: Stephanie Millar, housing spokesperson at Citizens Advice Scotland; Brian Murphy, head of lending at the Mortgage Advice Bureau; and Andrew Johnson, senior advice manager at the Money and Pensions Service.
Is there anything I can do to reduce the cost of my housing?
Andrew: As a tenant, you can apply for a one-off Discretionary Housing Payment to help with rent or a rent deposit if you’re claiming Housing Benefit or Universal Credit. Both tenants and homeowners on a low income or claiming benefits can consider applying for Council Tax Reduction. You apply through your local council. Find out more on the mygov.scot website.
Should I wait to buy a home?
Andrew: Continued high inflation and interest rates, coupled with the increasing cost of living, could have a negative impact on future house prices, but nothing is certain. Whether now is the right time for you will very much depend on your own personal financial circumstances.
Brian: You need to consider whether what you want to achieve is affordable, both in terms of what you feel comfortable paying and what lenders will allow you to borrow.
How can I secure a mortgage at the best rate?
Andrew: To access the best-available mortgage rates, you’ll need a good credit score. Checking for any errors on your credit report; avoiding too many credit applications; and reducing personal debt, such as loans and credit cards, is a good starting point. Having a bigger deposit will also help you access better interest rates and improve your chances of being accepted. Lenders will see you as being less likely to fall behind on your repayments.
I have a mortgage but I’m struggling with my payments. What are my options?
Andrew: Mortgage lenders are regulated. They must treat you fairly and consider any suggestions you make to help deal with your arrears. They should also give you an information guide on how to deal with mortgage arrears and what your options are. This is also available free from the MoneyHelper website.
I’m a private tenant – am I eligible for any help with rent?
Stephanie: You may be eligible for Universal Credit or Housing Benefit, and if you still need more money, you could apply to your council for a Discretionary Housing Payment [as Andrew mentions above]. It depends on your individual circumstances. The best thing to do is contact your local Citizens Advice Bureau (CAB), which will talk you through all your options. Or use its online advice website for Scotland.
Are there rules concerning taking in a lodger to help with rent?
Stephanie: Yes. If you have a mortgage, you should check with your mortgage provider and anyone else who part-owns the property. You may have to pay tax on the rent you receive or have your social-security claim adjusted, and you will also need to check who will pay the Council Tax. As a landlord, you will need to draw up a tenancy agreement, take a deposit and draw up an inventory. If you are renting the home, the rules about sub-letting will be set out in your tenancy agreement. In all cases, I would recommend getting advice from your local CAB.
Are there any more affordable alternatives to renting privately?
Andrew: The main alternative is social housing, where you rent from a housing association or your council. It can be a lot cheaper, but available properties are in short supply and there are long waiting lists. Alternatively, you could consider moving back in with your parents or family as a temporary measure. Sharing the costs of renting a property with a friend may also provide a realistic and more affordable option.
My landlord wants to increase my rent – what are my rights?
Andrew: If you rent from a private landlord or letting agent in Scotland, a rent cap may limit how much it can increase. You can check if this applies to you, and the other rules that landlords must follow, by visiting the Shelter Scotland website. If you disagree with a rent increase, you can challenge it by applying to Rent Service Scotland within 21 days of receiving the notice. It has the power to decide what your rent increase should be.
I’m worried about becoming homeless. What help is available?
Stephanie: If you’re at risk of becoming homeless, apply to your local council for help. They will decide if you qualify under homelessness law. The council might have a legal duty to make permanent housing available or to take steps to prevent you becoming homeless. If you’re already homeless, you’re entitled to temporary housing while the council investigates your application. You can get free, confidential advice from your local CAB, which can help you apply and support you through the process.
Sofia Vyas
Sofia is a freelance journalist in London who specialises in travel and investigations.
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