Proof I am paying rent as a lodger for Housing Benefit

KG

After eeking out my last months pay as long as possible whilst I applied for jobs (hoping that I'd get a job asap and wouldn't have to apply for benefits) I have finally bitten the bullet and applied for JSA.

I wanted to apply for Housing Benefit too but I rent a room from my aunt and uncle (i.e. I'm a lodger) and the questions on the form didn't fit this as I don't have a formal contract with them (I never needed one before).

I was told by the guy on the phone that I should speak to the job centre about this at my first interview. The guy at the job centre told me that the best thing to do was to wait for my JSA award letter and then take this down to the housing benefit office. I am happy to do this as long as it doesn't impede my claim, but I was wondering what others in this situation have done.

I understand that the govt needs evidence that I am paying rent (and possibly what I am paying it for - i.e. a room in a flat) but my aunt and uncle don't want to register as a 'landlord' as technically they're not. In fact - it seems that there is no legal requirement for contracts with lodgers.

I wondered about a rent book or a letter that states I rent a room from them.

I just want to be as prepared as possible so that I can take as much info as possible to the housing benefits people when I finally get my JSA award letter through, so any advice on how other lodgers have handled this would be great.

Thanks

KG

alfiesmum

If your aunt is worried about 'earning' money by renting a room to you, she could be covered under the 'rent a room scheme' where you're allowed to have a lodger for up to a certain amount of money per year. http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_4017804
This link has information on joining the scheme.
http://www.direct.gov.uk/en/HomeAndCommunity/Privaterenting/RentingOutYourProperty/DG_189125
And this link states that the 'landlord' can accept housing benefit as payment, which suggests you can certainly apply for housing benefit when renting as a lodger. Hope this helps,
alfiesmum x

Prinzessilein

The HB people will want to be reassured that this is not a 'contrived' tenancy.

If you live with relatives then HB need to know that they would still be offering the room at the same rate if you were not there.

I have rented from a family friend once. The HB office asked for a Tenancy Agreement, which we didn't have - but accepted a Rent Book - with up-to-date entries for the time since I had moved in; and a covering letter from the friend/landlady. They also phoned her for a brief interview to confirm/check some of the facts.

Even if you have not used a Rent Book before, it might be useful to start using one now - they only cost a few quid; and I used to have to show mine to HB every so often.

KG

Prinzessilein wrote: »

I have rented from a family friend once. The HB office asked for a Tenancy Agreement, which we didn't have - but accepted a Rent Book - with up-to-date entries for the time since I had moved in; and a covering letter from the friend/landlady. They also phoned her for a brief interview to confirm/check some of the facts.

Even if you have not used a Rent Book before, it might be useful to start using one now - they only cost a few quid; and I used to have to show mine to HB every so often.

Thanks - that's the kind of info I was looking for. A rent book going back to the start of 2012 is easy enough.

KG

G51shopaholic

I didn't think you'd get Housing benefit because you are renting from a direct relative.

I sure of it best call the benefit advice line.

You should still get JS Allowance but i dont think your entitled to Housing Benefit.

Prinzessilein

G51shopaholic wrote: »

I didn't think you'd get Housing benefit because you are renting from a direct relative.

QUOTE]

You can claim Housing Benefit if you rent from a relative, but you have to show that it is genuine (not a contrived) tenancy.

KG

G51shopaholic wrote: »

I didn't think you'd get Housing benefit because you are renting from a direct relative.

I sure of it best call the benefit advice line.

You should still get JS Allowance but i dont think your entitled to Housing Benefit.

Hi G51 - that's not what I have been advised so far as if I am unable to pay rent I am unable to stay here, just like any other rental agreement.

BigAunty

Uncles and Aunts aren't considered to be close relatives, though G51 is right about the fact that lodgers cannot claim HB if they live in the same dwelling as your landlord if they are a close relative.

http://www.dwp.gov.uk/publications/specialist-guides/technical-guidance/rr2-a-guide-to-housing-benefit/housing-benefit/

McKneff

Why are people going on about 'contrived tenancy', it has nothing to do with tenancy. A tenancy is when a person rents a house/property where the landlord resides elsewhere. This OP is going to be a lodger so a lot of these posts are irrelevant and only going towards
confusing the op.

KG

BigAunty wrote: »

Uncles and Aunts aren't considered to be close relatives, though G51 is right about the fact that lodgers cannot claim HB if they live in the same dwelling as your landlord if they are a close relative.

http://www.dwp.gov.uk/publications/specialist-guides/technical-guidance/rr2-a-guide-to-housing-benefit/housing-benefit/

Thanks Big Aunty. So, in connection with my claim, the DWP site says:

You cannot claim HB if you live in the same dwelling as your landlord, and they are a close relative of you or your partner.

A close relative is a:

• parent
• or step-parent
• or father-in-law or mother-in-law
• or child
• or step-child
• or son-in-law or daughter-in-law
• or brother or sister
• or brother-in-law or sister-in-law
• or partner of any of the above.

So it doesn't matter that I am living with them, they're not a close relative as far as thw DWP is concerned. Also:

Contrived tenancy
You cannot claim HB if the local council believes that your liability to pay rent has been created to take advantage of the HB scheme. For example, if you live rent-free while you are in work, but have to pay rent when you are unemployed.
If you can satisfy the local authority that the arrangement was not intended to exploit the HB system, you may be able to get benefit.

I haven't got a formal written agreement in place, but will get a rent book sorted and can show money going out of my bank account for rent on a regular basis prior to this (i.e. when I was in work) if required.

Hopefully that will suffice.

Ta for the advice

KG