Housing Benefit in a shared house

anewloginapparently

Some quick questions on Local Housing Allowance:...

I'm starting part-time work (£300 a month) as well as part-time study (only 4 hours a week mind) soon and coming off JSA. Both work and study are in the next town though so going to have to move out of my Mum's and get a flatshare down there. Got a little bit saved up so deposit and first months rent shouldn't be a problem but will need LHA for the next month... Have got two different options, either:

1). I get a 2 bedroom place with my mate who is thinking about moving out too.

or

2). I take a room in a pre-existing flatshare.

I think I would be eligable for the Local Housing Allowance for a shared room of £60 a week for this area. A few questions on this:

1). If I got a shared house with my mate who is female would they try and prove we were a couple (we definitely aren't :rotfl:) and so not give me LHA? Or is it relatively easy to prove this (ie if they came around they could see we sleep in seperate bedrooms etc!).

2). Most of the shared houses I've seen have been included in the rent, say £75 for rent and all bills. How does this affect LHA? Will they deduct what they think is a fair amount for bills? Anywhere I can see how this is worked out?

3). If moving into the shared house, if it was quite an informal process (as it has been in the past when I've rented rooms) and so didn't have a paper contract, how would I go about putting in a claim for LHA? Would a letter from the landlord stating that I had rented the place and how much my rent is be enough?

4). How long does an LHA application take? As I said before I've got enough saved up for my deposit and first months rent, will I get this first months rent back? Will the LHA application come through in time for me to pay the next months rent?

Any other points I should be aware of before I embark on this?

Thanks again Money Saving Expert people!

Macro_3

Some quick questions on Local Housing Allowance:...

I'm starting part-time work (£300 a month) as well as part-time study (only 4 hours a week mind) soon and coming off JSA. Both work and study are in the next town though so going to have to move out of my Mum's and get a flatshare down there. Got a little bit saved up so deposit and first months rent shouldn't be a problem but will need LHA for the next month... Have got two different options, either:

1). I get a 2 bedroom place with my mate who is thinking about moving out too.

or

2). I take a room in a pre-existing flatshare.

I think I would be eligable for the Local Housing Allowance for a shared room of £60 a week for this area. A few questions on this:

1). If I got a shared house with my mate who is female would they try and prove we were a couple (we definitely aren't :rotfl:) and so not give me LHA? Or is it relatively easy to prove this (ie if they came around they could see we sleep in seperate bedrooms etc!).

They might query it, and rightly too. If you have nothing to hide, it'll be no problem, they may just visit to check that everything is above board. Only disadvantage would be that it would be more expensive as you'd be directly responsible for bills/connection/etc and if your friend ever left (or you wanted to leave) it would leave the other person in a difficult position.

2). Most of the shared houses I've seen have been included in the rent, say £75 for rent and all bills. How does this affect LHA? Will they deduct what they think is a fair amount for bills? Anywhere I can see how this is worked out?

No deductions for bills. You'd just get the £60 if that's your LHA rate

3). If moving into the shared house, if it was quite an informal process (as it has been in the past when I've rented rooms) and so didn't have a paper contract, how would I go about putting in a claim for LHA? Would a letter from the landlord stating that I had rented the place and how much my rent is be enough?

You don't really need a written contract, but in my opinion you'd be a fool not to have one, informal house share or not. It would certainly make claiming LHA more straightforward and it would protect your rights.

4). How long does an LHA application take? As I said before I've got enough saved up for my deposit and first months rent, will I get this first months rent back? Will the LHA application come through in time for me to pay the next months rent?

Varies by LA, depends on how busy they are, also depends on how you apply and if you are organised and have all of the info required by the LA with your application. If you are slow to respond to letters and don't provide everything asked for in full etc it could take months. Many in my area are done same.next day if applying in person with all the info.

Any other points I should be aware of before I embark on this?

Thanks again Money Saving Expert people!

SomeBozo

Hi

1). If I got a shared house with my mate who is female would they try and prove we were a couple (we definitely aren't :rotfl:) and so not give me LHA? Or is it relatively easy to prove this (ie if they came around they could see we sleep in seperate bedrooms etc!).

Thats not enough of a test. They would look at eating /shopping/bills arrangments. 2 people in the house = 2 bottles of milk etc. Sleeping arrangments are just one factor.

2). Most of the shared houses I've seen have been included in the rent, say £75 for rent and all bills. How does this affect LHA? Will they deduct what they think is a fair amount for bills? Anywhere I can see how this is worked out?

Don't know the answer to this, but someone else will as its a common question.

If moving into the shared house, if it was quite an informal process (as it has been in the past when I've rented rooms) and so didn't have a paper contract, how would I go about putting in a claim for LHA? Would a letter from the landlord stating that I had rented the place and how much my rent is be enough?

It would need to be a formal agreement with paperwork. Usually a deposit plus delcaring tax on the income etc.

4). How long does an LHA application take? As I said before I've got enough saved up for my deposit and first months rent, will I get this first months rent back? Will the LHA application come through in time for me to pay the next months rent?

This varies on region, check as you apply.

Bozo

anewloginapparently

SomeBozo wrote: »

Thats not enough of a test. They would look at eating /shopping/bills arrangments. 2 people in the house = 2 bottles of milk etc. Sleeping arrangments are just one factor.


Bozo

Certainly poses some interesting thoughts that one! Can just imagine them checking how many shampoos there are in the bathroom! Wonder what happens if only one of you drinks milk though ...

Got nothing to hide though so hopefully shouldn't be too much of a problem!

Thanks to you and poster Macro for your help!

anewloginapparently

Macro wrote: »

No deductions for bills. You'd just get the £60 if that's your LHA rate

Thanks for all your help Macro, great post there!

Quick question on this one, is this always the case? Say even if the rent is lower then the LHA?

Say the rent is £50pw including council tax, water, internet, electricity etc etc would you still get the £50pw LHA? I would've thought they would cut out the bill parts somehow so they're not paying your bills for you! If they don't that is great news and makes house sharing seem much more attractive than renting my own place.

Macro_3

anewloginapparently wrote: »

Thanks for all your help Macro, great post there!

Quick question on this one, is this always the case? Say even if the rent is lower then the LHA?

Say the rent is £50pw including council tax, water, internet, electricity etc etc would you still get the £50pw LHA? I would've thought they would cut out the bill parts somehow so they're not paying your bills for you! If they don't that is great news and makes house sharing seem much more attractive than renting my own place.

No, there are no deductions. There is also a £15 cap at the moment, which means that you would receive your rent +£15 or your max LHA, whichever is lower. So if your rent was £50 and your LHA £60, you'd still get £60. If your rent was £40 and your LHA £60, you'd get £55 (ie, rent plus £15). The £15 cap is predicted to be phased out next year though.

anewloginapparently

Macro wrote: »

No, there are no deductions. There is also a £15 cap at the moment, which means that you would receive your rent +£15 or your max LHA, whichever is lower. So if your rent was £50 and your LHA £60, you'd still get £60. If your rent was £40 and your LHA £60, you'd get £55 (ie, rent plus £15). The £15 cap is predicted to be phased out next year though.

Many Thanks again....

Though I've messed up my calculations, LHA is £60 for a shared house in my town but just looked it up and its only £42 for the city 10 miles away I'm moving to by the looks of it! Not sure how they've come to that figure as all the other levels (1 bed, 2 bed etc) are the same as my current and there isn't a single room available anywhere in the city for £42! Weird... It's supposed to be on average rents isn't it? Wish they could show me where to find a room for £42!! :mad:

Macro_3

anewloginapparently wrote: »

Many Thanks again....

Though I've messed up my calculations, LHA is £60 for a shared house in my town but just looked it up and its only £42 for the city 10 miles away I'm moving to by the looks of it! Not sure how they've come to that figure as all the other levels (1 bed, 2 bed etc) are the same as my current and there isn't a single room available anywhere in the city for £42! Weird... It's supposed to be on average rents isn't it? Wish they could show me where to find a room for £42!! :mad:

Could you get some more work, maybe just an evening or two? If you have seen somewhere for £50 then the difference to be made up isn't all that great, particularly if you can get bills thrown in too.

I know it's not all that easy, though!