Letting our son rent one of our properties

outerhebrides

Our son at present rents a property we own in Bedfordshire and since being made redundant has been claiming housing benefit in order to pay us the rent.
We would like him and his family to move nearer to us in Norfolk. My question is if he is unable to get a job would he still be able to claim housing benefit if we bought another property up here in our name but for him to rent from us?
We think there is some clause that states the tenant must have previously have had a rental agreement and paid rent before they can apply for housing benefit if the rental property is owned by a relative. He was previously paying rent on the property he is in now until he lost his job so does that count if we sell that and buy a different property for him. He would hopefully find work but if not what is the position as unfortunately we could not afford to let him have it rent free.

BitterAndTwisted

I believe that each local authority may have different rules about how they view "contrived tenancies". A contrived tenancy is one which is set up purely to take advantage of being paid by housing benefit, so if the family live rent-free while the people are working and rent becomes due once they are not, that is clearly a contrived tenancy. Buying a property for your family members to live in when they are not in employment but you still expect rent to be paid could mean that you fall foul of the rules. I suggest you consult the local authority where you are thinking of buying the property.

Do you believe that his employment prospects would be better in Norfolk than in Beds if you can persuade the tax-payer to cover his rent in the meantime?

theartfullodger

See this good advice...

http://england.shelter.org.uk/get_advice/housing_benefit_and_local_housing_allowance/housing_benefit_if_renting_from_a_family_member#1

You buying a property investment just so son can rent it from you at our, the tax-payers, expense may not sound too attractive to many and quite possibly "contrived" to the town-hall.

However, if he rents from some other, existing, "normal" (as far as any ever are..) landlord, on a normal standard deal he'll likely get the £££££. But beware fewer & fewer LLs want tenants on HB/LHA.. (discuss in conjunction with Universal Credit & Dave's firm plan to spend less & less on benefits...)

whalster

I don't know whether you would be buying a further property with a mortgage but if you were most BTL lenders have strict criteria about letting to family members