Renting from a family member

real1314

The whole issue of contrivance centres on whether the applicant would have got HB other than in the situation that has been created (contrived).
In this case the OP is currently renting, and has entitlement to HB, therefore moving to a different property does not create an entitlement to HB it simply changes one of the facts on which that entitlement is based.

Mojisola

It should also help that the flat has been rented out to other people previously. That shows that the flat hasn't been purchased as a home for deemafaye.

fluffymovie

It is a sticky area no doubt and I have just this morning prepared an appeal on this very issue.

The rules are quite clear however and just because you are related to the landlord does not prevent you from claiming LHA.

What you need to show is that the tenancy is operated at arms length and that your landlord / relative is treating you the same as another tenant. There doesnt need to be a formal tenancy agreement in place but the landlord should be prepared to evict if money goes unpaid etc.

Contrivance is slightly different and is usually where the LA believes a Sham tenancy is in place. Ie there is no liability to pay rent in the first place and parties as only saying there is to claim LHA. This is where the term "to take advantage of the scheme" comes into play. An example might be where the tenant (son) was living in a property owned by (mum) and not paying rent. Son loses job and claims LHA as he is aware that LHA can be paid so mum starts to charge him rent.

It is a hard balance to get right in some cases but the LA are totally wrong to make the decision as the OP has stated it.

You should write in and ask for a reconsideration of the decision and state the relevant regulation for close relative (reg 9) doesn't apply as the landlord is not resident.

Good Luck

skibadee

My daughter rented her house from her father and was able to claim HB.