Renting out an affordable house

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Madz

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i bought an affordable house a year ago, but my circumstances have changed and now i want to rent out my affordable house instead of living in it.
does anyone know if this is allowed or addressed in the affordable housing agreement?
 
as far as i am aware you are not entitled to rent out an affordable house
 
You can however avail of the Rent-a-Room scheme and rent out individual rooms(with permission of LA). You must maintain your affordable house as your "principal private residence"
 
It will depend on what local authority area you are in. Most do not allow renting but Kildare for example does, check with your solicitor or the housing office of the relevant authority.
 
What stops people from renting them though? I know a few which are rented out and no body knows any difference.
 
i know in the south east it is written into your contract, if they are being rented out the owners should be reported
 
Yes, but who reports them? People who ordinarily buy their homes don't know which homes are affordable units, do they?
 
hi

yes but if it rented out you have to make sure you have the proper insurance for rented property.if you had a fire or flood damage the insurance would not cover you becuase you did not tell them
 
Good point snowball, but I still reckon that this doesn't put people off.
We were 1st to view affordable homes in one area and therefore we know all the units that were available. I would seriously question the owners of these homes. Either that or else they ended up not being sold as affordable units and went on to be sold ordinarily.
 
To respond to happygoose, I am a solicitor, have bought several in Kildare, nothing in paperwork says you can't rent. Rang council because a client specifically asked was told that a decision had been made not to prohibit it but the time on the clawback would stop running for the period that property was rented. I think the reasoning was that circumstances change and better to have an occupied property than an empty one, also better to have the mortgage paid than to have repossessions.
 
seriams said:
Yes, but who reports them? People who ordinarily buy their homes don't know which homes are affordable units, do they?
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A renter is entitled to claim rent reflief so this could be one way of being found out. However I don't think our revenue systems are that synchronized to be found out in that way!
 
to be honest i think you should be able to rent them out and i definitly wouldnt report someone who was. as a previous poster said peoples circumstances change.
 
Ramble,

If, in theory, the council allow you to rent out the affordable property, what are the tax implications in relation to stamp duty and tax on rental income?
 
cat123 said:
to be honest i think you should be able to rent them out and i definitly wouldnt report someone who was. as a previous poster said peoples circumstances change.
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Presumably renting out the AH property might be in breach of contract with the LA in at least some situations? In which case condoning breach of contract on the part of the property owner is hardly good advice? Anybody know what the repercussions might be in relation to such a situation (separate from any tax liabilities that might arise)?
 
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Affordable Housing FAQs

Can I rent the property to another party?
If an affordable purchaser moves out and lets the house to another party, it will clearly be a case where the property has ceased to be the purchaser’s principle place of private residence and the Local Authority can call on and insist on the purchaser paying the percentage discount received on the property at that stage.
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