Incapacity Benefits

Ladybird20

Hi All...I have been asked if i consider renting out one of my properties to someone on incapacity benefits and i wandered if this could in any way be problematic
Its usuall that i rent out to people in full time work so i am a little unsure on this one. Thanks in advance for any comments ...

suze_g

It's Incapacity Benefit, and it means that someone cannot work because they are not well. They will be entitled to claim Local Housing Allowance probably so should be fine. Your local authority website will have lots of info about it.

Ladybird20

yeah but are they allowed enough money to cover any rental?? how does that work? Only my properties are fully furnished to a very high standard and this is reflected in the price of the property....and thank you for your reply ,,

racheyg

Incapacity benefit can be pretty high! Not sure how much - and it may be that it is taken away if it is not proven to be needed anymore (I think, someone may correct me on this?) It's a benefit that is constantly reviewed, as I understand (again, someone may know better than me)

Ladybird20

hmmmm so already i am not getting a good feeling about renting in this way.Also does the money go to the tenent then to be paid to the landlord or straight to the landlord? i wont accept anything other than being paid to myself directly.

Snakeeyes21

incapacity benefit plus LHA is more than enough.
what many landlords dont understand is that the LHA isnt as low as the old fixed rate HB, the rates for LHA are more in line with the true cost of a monthly rent

theartfullodger

See at...
http://www.direct.gov.uk/en/DisabledPeople/FinancialSupport/DG_10016082
..

Rates are currently
"

Rates

Current weekly amounts
Weekly rate Amount Amount if you are over State Pension age
short-term (lower rate) £63.75 £81.10
short-term (higher rate) £75.40 £84.50
long-term basic rate £84.50 You are not eligible for long-term basic rate IB

"

I'd (well, I am suspicious by nature) wanna see proof they are on IB.

Be aware the government can (and understandably is under great pressure to ..) take away IB if circumstances change

e.g. (Just one example..)
http://www.publications.parliament.uk/pa/cm200607/cmhansrd/cm070108/debtext/70108-0002.htm

Cheers & Good luck to you & your tenants!

Lodger

Ladybird20

....thank you for your replies,,very usefull.....i cant see how they can afford it myself, considering theres 85.00 council tax (or do they not pay that??)plus all the bills..i am thinking itsa no go.....

socrates

Ladybird20 wrote: »

hmmmm so already i am not getting a good feeling about renting in this way.Also does the money go to the tenent then to be paid to the landlord or straight to the landlord? i wont accept anything other than being paid to myself directly.

Then you will need to forget this option as in 90% of cases it is paid to the tenant directly.

The 10% will need to have solution abuse, learning difficulties or previous arrears history in order for you to receive the allowance directly.

LHA is separate from their other benefits and council tax is also claimed for.

Snakeeyes21

they will get council tax benefit as well that will fully cover it

Ladybird20

thanks guys you have been a great help xx