Housing Benefit and rent increase

Voyager2002

Can the HB people refuse to consider increasing benefit when the rent increases?

My family own a cottage that we let, and the rent has remained unchanged for at least the last five years. We are losing money on it (250 per month doesn't even cover the maintenance that is needed). We have discussed a rent increase with the tenant (who has a disability that prevents her from working and so lives on benefits) but she has been told that since HB apparently assessed the value of the property last April (without telling us) they cannot even consider an increase until next April.

Can they do this, or have they told a tall story to make us go away?

[Deleted User]

Its not housing benefit now for tenants in private rented accom but Local Housing Allowance,and yes it is only reviewed every 12 months,and come next april with rental values falling it doesnt follow that the next review will be upwards,as its based on the average cost of renting a simlar property area by area

Conor_3

No, they are correct. A council Rent Officer will look at the rent being charged and assess whether it is correct or not. In addition to that, the Council will have a set limit they will pay a claimant based on the number of people. For example, a single person with no dependents would only get HB to the level for one bedroom flats in the area even if they were renting a 4 bedroom house as their housing needs are only for a 1 bed house.

The saleable value of the property is fairly irrelevent - it's the rental value that counts. There is nothing to stop you getting the Rent Officer out to assess a fair rent for the property and TBH, £250 a month is ridiculously low. In East Yorks you won't even find a bedsit for that anymore. Around here, rents start around £400 for a 1 bed hovel.

seven-day-weekend

Yes, Housing Benefit can refuse to pay the increase.

If they already consider it to be a fair rent for the property, they may refuse an increase.

Also, if they consider the person who is renting to be 'overhoused' i.e. a single person in a three-bedroom house, they will only pay the rent for a bedsit or one-bedroom place. The tenant will have to make up the rest.

Conor_3

The thing is though, that's only HB. There is nothing whatsoever to stop the landlord whacking up the rent within reason.

If it were me, I'd put up the rent when the current tenancy agreement is over and let the tenant worry about paying it - it's not your problem and you're not a charity. If they can't pay it, they'll have to find somewhere else and they know for a fact that they can't and I reckon they're playing you for a fool. There's even more people than ever looking for rental properties with the rising repossessions and lack of mortgage availability so I doubt it'd be empty for long.