Can you claim housing benefit if renting from a relative?

Jackinbox99

sirmyser wrote: »

I originally believed the same thing, until I was told by a friend that she knew someone that was doing it. After investigation, the bottom line is that the local council (they do vary) can award housing benefit to a relative if the following conditions are met:

• The letting is on a commercial basis
• An appropriate tenancy agreement (assured shorthold) is held
• That the tenant has no financial interest in the property

Also, because the landlord is a relative the HB department are more likely (naturally) to carry out more extensive checks, such as:

• Landlord's current address verification
• commercial insurance check
• Enquiries about the status (if any) of any loan secured on the property in question, (commercial, residential etc) AND if the lender is aware of any intent to rent out the property.
• Property's previous owner checks (as declared on tenants HB)application)

Other considerations:

• Tax must be paid. Rental income must be declared by the Landlord in annual tax returns.
• Fire regulations must be met
• New L.H.A. (local housing allowance) that was introduced on 7th April this year. This covers the applicant for the number of bedrooms required NOT the number that you have. L.H.A rates are available from your local council website.

The best advice, would be to just approach the local council, and put all the cards on the table... that way you won't get into any trouble and the worst that can happen is they can say no..

I hope this helps.

Excellent advice. Having worked in a Housing Benefits section for a number of years myself, I agree with the above. As long as the property is normally rented out as a comercial arrangement to tenents then its not a problem. i.e. if your mum wasnt renting it to you, she would rent it to someone else.