Housing Benefit

Dal_Whinnie

A friend is currently living in rented property and is claiming housing benefit. However, she is struggling to make ends meet. Her father also lives in the area but is planning to travel for a few years so is prepared to let his daughter live in his house (I don't know if she will be paying him rent). Looking on the housing benefit guidelines it states that you are not eligible for housing benefit if you are living in the home of a close relative.

My question is around the use of the word 'home'. If her father moves out as planned it will cease to be his home although he will still own the property. Does this make any difference to entitlement? Effectively, can you rent a property from a relative and still claim housing benefit?

Caz3121

You can claim housing benefit if the landlord is related but does not live there however there will be some hoops to jump through.
Have a look for 'contrived tenancy'
It basically needs to be a proper tenancy. Her father will be a landlord and have landlord responsibilities, gas checks, pay tax on income, consent from mortgage lender (if applicable), landlord insurance, commercial rent, charge the same rent whether the tenant is working or claiming benefits, be prepared to evict for non-payment of rent etc
If she does not live there, will the father rent the property out anyway to a stranger? Is he going to put all his belongings into storage or leave them in his home?
If your friend is under 35 and entitled to the shared room rate only and the property is bigger and therefore would have a higher rent there are likely to be issues proving it is not contrived if she is not expected to make up the difference

dseventy

It sounds like she won't be paying rent so won't be entitled anyway?

The wider question about renting from family, it can be done, but it needs a formal tenancy agreeement, at market rate, to be evicted if she can't pay it , formal Land lord regs (gas boiler safty etc), and the dad will need to declare the income.

D70