RENTERS are always looking for cheap rates as the cost of living soars.
Rents outside London have increased by 11% annually – costing an average £1,162 per calendar month between July and September last year.
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As property prices increase, more people want to wait until the market cools – and look to renting instead.
So how can you find to the cheapest rent possible? We explore some options for you below.
Homesharing
Homesharing is when someone invites another person into their property to help out with chores and house keeping in exchange for cheaper rent.
For example, it’s very popular with students who are looking for low rent, and pensioners who need help looking after their home.
There are organisations you can either advertise or search through, like Homeshare UK. You might need to lend support with the following in order to get involved:
- Cleaning/Laundry
- Shopping
- Gardening
- Walking the dog
- Overnight security/Companionship
We spotted one property in north London costing £199 per month, including bills, and that’s about £500 cheaper than the average London rent price.
That amounts to roughly 20% less.
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But do keep in mind you might need to pay a little more for council tax on top.
Rent to buy
The Rent to Buy scheme is where tenants can pay up to 20% below market rent in order to save for a deposit.
The scheme is only available in England and is there to support those looking to get on the property ladder.
To be eligible, you must:
- have a job
- be a first-time buyer
- be able to pay rent and save for a deposit simultaneously
However, you can only apply for properties in the scheme – which excludes anywhere in London.
You can view these properties on different letting agent websites or simply call them up for more information.
The initial tenancy agreement will last for two years, but it may be possible to extend it.
You’ll be able to buy your home as soon as you have enough to secure a mortgage.
London Living Rent is London’s own version of Rent to Buy – but you’ll need to live or work in London, reside in private rented accommodation and have a maximum income of £60,000 to apply.
You also can’t own any other residential home.
You won’t be eligible either if you can afford to buy a property elsewhere using shared ownership.
These tenancies usually last three years, but again could be extended.
Property guardianships
A property guardianship is when firms let out properties for discounted rent – usually schools, offices, care homes or other non-traditional homes.
The rent will be below property market value – the exact price depends on the building – and the firm will act as your landlord.
Basically, they’ll make sure the building is not falling into disrepair and fits your standards.
You can search online for property guardians using sites like Global Guardians, and Blue Door Property Guardians.
However, just make sure you know your rights as a renter – property guardians have been known to ramp up costs in the past.
For example, a rent repayment order (RRO) can force a landlord to return money for breaking rules.
A tenant or the council can apply for this through a tribunal, and a council might offer help doing this as they run the licencing scheme.
Housing charity Shelter says there may be fees involved but these can be claimed back if successful.
A property without a licence is not the only thing that can break the rules.
You can read more about that here.
Housesitting
There are some websites like House Sitters UK where you can search for a property to live in for free over a specific period of time while the owner is away.
It could help you stay on your feet – perhaps if you’re a student needing to stay in your uni town over summer.
However, if you do apply via these sites, you’ll need to pay a membership fee.
House Sitters UK, for example, requires a £29 monthly fee.
You’ll also need to create a profile page so that homeowners can browse through your information, and provide valid identification.
According to our research, you could also earn roughly £20 a day from housesitting, but that depends on if you need to look after a pet in the property.
Other sites you can look on include Trusted Housesitters, MindMyHouse and Nomador.
Household Support Fund
You might be able to get extra cash towards rent and essentials through the Household Support Fund.
It is a £421million government programme – and councils get a slice of the funding to dish out to hard-up families in their catchment area.
Some councils are offering free cash under the scheme – which you could use to put towards your housing costs.
For example, East Riding Council is offering a maximum £400 – but the deadline to apply for that is tomorrow.
The scheme ends on March 31 – so don’t waste any time checking in with your local council.
You can find that using the government locator tool.
Discretionary Housing Payment
If you’re on Universal Credit, you can apply for a Discretionary Housing Payment to help with your rent.
The cash can also be used to cover housing costs like putting down a deposit, and advances you’ll need for moving house.
There’s no set amount you’ll be given – help will be given out on a case-by-case basis.
But recent research showed some councils were offering up to £4,500 to families.
And in total, local authorities dished out a whopping £171million in Discretionary Housing Payments for the financial year ending March 2021 – up 30% the prior year at £132million.
Talk to your landlord
If you’re worried you won’t be able to cover your housing costs, you should talk to your landlord.
By being upfront at the start, you could be more likely to renegotiate a better rate while you get yourself back up and running.
You could also ask for an affordable repayment plan to pay back what you owe.
