Housing Benefit to rent from friend?

wilsooon

Hi, hope someone can advise.

I'm currently receiving HB on a privately rented room (I'm classed as 'a lodger'). A friend is looking to let a room in his house and wouldn't have a problem with HB. But could I claim HB in this case? Also, he lives alone and although he genuinely IS just a friend, would this look a bit dodgy? The main reason for the move would be that he's quite happy to let me use the garden (he doesn't go out there, really bad health probs), and I'm hoping this would help my depression (currently on Incapacity Ben.)

Do you think this would cause problems overall, or should I just put up with where I am, which is OK but small with no outdoor space? Its not some scam to milk the council, but are they likely to think it was????!? What if I didn't tell them he is a friend - I assume I'd be in worse trouble if it then came out??? :undecided

Thanks for all help.

Wilson

karenx

Dont really see the problem if he is allowed to rent out a room, ie doesnt rent the house himself, and you will get a proper tenancy agreement

MrsManda

As Karenx said, you'll need to have a tenancy agreement with your friend and he'll need to adhere the H&S rules as a landlord such as making sure he gets a gas safety certificate each year.
If you have a proper tenancy agreement then there shouldn't be a problem with getting HB.

It may be helpful for your friend to have a look at the details of being a residential landlord on the direct.gov.uk website

http://www.direct.gov.uk/en/HomeAndCommunity/Privaterenting/RentingOutYourProperty/DG_189125

http://www.direct.gov.uk/en/HomeAndCommunity/Privaterenting/Repairsandstandards/DG_189195

wilsooon

Many thanks to both of you for your replies, I was hoping it would be OK but was afraid it might not be!

Wilson

archer5

Is your friend in receipt of Housing Benefit himself and is he in receipt of a Single Persons Discount?

GreyQueen

This would be OK as far as I'm aware; what the local Council paying out the HB/CTB won't tolerate is what looks like fabricated "rent liability" for the purposes of claiming HB.

If they have any doubt, they'll check up on you by sending a visiting officer around.

Of course, if your friend is currently single and paying his own Council Tax, he will automatically lose the 25% single occupancy discount by having you under his roof. That's worth several hundred a year.

dseventy

Are you both opposite sexes?

D70

HappyMJ

As Karenx said, you'll need to have a tenancy agreement with your friend and he'll need to adhere the H&S rules as a landlord such as making sure he gets a gas safety certificate each year.
If you have a proper tenancy agreement then there shouldn't be a problem with getting HB.

It may be helpful for your friend to have a look at the details of being a residential landlord on the direct.gov.uk website

You don't need gas safety certificates for lodgers. You don't even need a "proper" tenancy agreement. Just a letter from the owner will suffice.

Of course, if your friend is currently single and paying his own Council Tax, he will automatically lose the 25% single occupancy discount by having you under his roof. That's worth several hundred a year.

Council tax payer can then claim second adult rebate to get that back.

STOCKWIRE

HappyMJ wrote: »

You don't need gas safety certificates for lodgers. You don't even need a "proper" tenancy agreement. Just a letter from the owner will suffice.
Council tax payer can then claim second adult rebate to get that back.

People who cannot be treated as 'second Adults' include the council Taxpayer's partner, joint tenants, lodgers and certain students.

Anubis_2

If the claim is genuine and he is a friend only then I see no benefit of you mentioning he is a friend unless it arises or you are asked - then of course, be clear about it. I would imagine that people who reside in a house with another person they do not know at first, soon become friends anyway, providing they can get along.

BaldEagle

I did exactly this a few years ago and it wasn't a problem. We simply got one of the ready made forms from WH Smith (Licence Agreement for Lodger - Form F303E), gave that to the LA and that was that. The only issues might be if your friend is currently claiming HB/LHA or if the property is rented as sub-lets may not be allowed.

Slightly off topic but one thing your friend might need to consider is tax. Provided the amount you give him is less than £4250 a year, it'll be tax free. Anything more than that, HMRC will take an interest: Rent a Room Scheme

In most cases the LHA for a single room will be lower but thought I'd mention it anyway.

Good luck!