Refused Housing Benefit - allegations of a contrived tenancy.

didi3012

My ex-partner has been refused housing benefit, on the grounds that the property that he is renting (from me), is a contrived tenancy.

Admittedly, it looks suspicious at first, but we were sure that once the LA looked at all of the facts and evidence, that HB would be granted. Wrong.

A bit of background. My ex and I split 6 years ago, after 9 years together. We have two children, aged 7 and 8. After the split, I bought and renovated a delapitated four storey house, which basically comprises a three bed maisonette on the the ground/1st/2nd floors and a self contained one bed flat in the basement. My children and I live in the maisonette and I rent out the basement flat. I handle the letting process myself (i.e. without the use of an agent) and have had several tenants since 2008. The property has been vacant approximately 4 months during that time, between lets. Fortunately, I live in London close to a large hospital, so finding tenants has been easy. They have all had tenancy agreements, but none have claimed housing benefit.

I keep the rent relatively low (£500 pcm), as long as I can get the right person.

My ex moved out of London when we separated and took a job in Newcastle. He was made redundant in 2010, then lost his home, became metally ill, new girlfriend left him taking all of his valuables with her and he found himself homeless. Last year, he moved back to London to be near to his children and try to rebuild his life. He was renting a small bedsit about 5 miles away and was in receipt of housing benefit for that property. When my last tenant (a doctor who had been renting since last April) gave notice in February and then moved out in March, the ideal solution seemed to be for my ex to rent the flat. He would be near to his family, and his children and my rent is actually very low compared to what he is paying now.

He submitted a claim for HB and CTB, and I'm not sure how/why, but he disclosed out previous relationship. His claim was refused on the grounds that we are closely related and the tenancy appears to be contrived! He is going to appeal, but has been told not to be hopeful.

I have provided evidence of previous tenants and tenancies - the property is self-contained and registered as a separate address so tenants have been liable for council tax, plus rent books, signed tenancy agreements, bank statements showing payments etc. Apparently the LA do not doubt that I have had tenants in the past, but say that this alone is not enough!

Fortunately, I can cover the mortgage without the rent - it just helps to pay for extras, but that is not the point.

I just feel like screaming! Any advice would be appreciated.

BigAunty

You may find this document helps with the appeal. Contact your MP to let them know that the local council is not following HB regulations.

http://www.ownershipoptions.org.uk/pdf/Buying to let to a relative.pdf

However, before you do this, can you clarify if this self contained flat is fully separate from the other property, having its own separate entrance, not sharing any amenities with the rest of the property, paying separate council tax?

HB is not payable when a close relative lives in the same property as the landlord to whom they are related, i.e. when they are a lodger in the same property rather than a tenant in another property. This isn't classed as 'contrived' though, simply not allowed under other HB regulations. And off the top of my head, I think that even 'exes' can be classed as a close relative when there are children involved but I would need to dig out HB regulations to double check if this is correct.

EDIT - here's the regulation on close relatives

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

didi3012

Thank you for the link.

I can confirm the the flat is completely separate and self-contained. It has a separate entrance, own garden, and is registered as a separate address with the land registry. It also has separate gas/electricty supplies. I planned to sell it when I renovated the property, but keeping it as a regular source of income seemed like a better deal. Previous tenants have all been registered for and paid their own council tax.

I should also add that he is definitely an ex. I married my new partner last year. We even supplied the LA with a copy of my marriage certificate.

CIS

I have provided evidence of previous tenants and tenancies - the property is self-contained and registered as a separate address so tenants have been liable for council tax, plus rent books, signed tenancy agreements, bank statements showing payments etc. Apparently the LA do not doubt that I have had tenants in the past, but say that this alone is not enough!

Apart from it being your ex - is there any difference between the tenancy now and the previous tenancies you have given people.

CIS

I can confirm the the flat is completely separate and self-contained. It has a separate entrance, own garden, and is registered as a separate address with the land registry.

It may be registered with the Land Registry but has it been banded by the Valuation Office as a dwelling ? - have you received council tax bills for it when its been unoccupied ?

didi3012

CIS wrote: »

It may be registered with the Land Registry but has it been banded by the Valuation Office as a dwelling ? - have you received council tax bills for it when its been unoccupied ?

Yes to both questions.

Also the tenancy now is exactly the same as previous tenancies, although apparently the fact that I didn't kick him out the moment his HB was refused, has made them even more suspicious.

CIS

although apparently the fact that I didn't kick him out the moment his HB was refused, has made them even more suspicious.

It would do if they were already considering it as a possible contrived tenancy. Has he asked them to reconsider the decision ?