Local Housing allowance

nightkid

Hi everyone.
Quick question.
Currently renting a 4 bedroom house with my family of 5: parents, myself and 2 siblings. Myself and my younger brother are planning on moving out in the near future which puts my parent and sister into the benefit area. Only me and brother fulling full time. My parents don't earn enough and sister is at full time college. That means they are entitled to a two bedroom housing allowance. Does this mean they have to move out of the current rented house to a 2 bedroom or they can still live in the current one albeit on a higher rent? I'm asking because the current house location is ideal for my family and I'm willing to supplement their income since I will be storing some of my stuff there.

Thanks for any advice given.
Regards,

pmlindyloo

If this is a privately rented house then they can stay where they are. However, as the HB will only be for 2 bed accommodation then they will have to 'top up' the remainder themselves.

You can look up the housing allowance for a 2 bed place on your local council site (google local housing allowance + your area).

You can put their details into the benefit calculator on www.turn2us.org.uk (click on 'benefits search' on the banner and you will see the calculator) and you will have a good idea of what their entitlement might be when you both have left.

Morlock

They can stay where they are as long as the rent is paid. There is no bedroom limit for LHA, just a financial limit. If the LHA covers the rent on a larger property than bedroom entitlement suggests, then the larger property can be rented, or rent can be topped up from other income.

The 'bedroom tax' only applies to tenants in social housing.

pmlindyloo

A much better idea than the one you were contemplating! (On the CAB forum)

BigAunty

nightkid wrote: »

... I'm asking because the current house location is ideal for my family and I'm willing to supplement their income since I will be storing some of my stuff there.

..,

Might be better if you disintangle yourself from your parents financial problems and put your stuff in a rented storage locker rather than subsidising your parents to have 2 empty rooms that they can't afford to pay for themselves. Empty rooms are a luxury for those on benefits and benefits are designed to disincentivise tenants from living in properties larger than their needs.

Is it possible that your parents foolishly took up a tenancy in a property whose rent is far higher than the LHA rate which they are entitled to? Meaning that they are struggling because they ignored the basic rule of thumb that they should only live in a place they can afford through their employment or benefit income? I.e well above their means?

LHA rates are calculated on the lowest third of market rents (the bottom cheapest third of properties) plus there are size restrictions and the way LHA is calculated changed years ago from the median (average) of local market rents to the bottom third.

So if they chose to live in a property much more expensive than their entitlement, now is a good time for them to change their expectations rather than you feather their too large, too expensive nest ?

Changes made to cap size and rates were made back in 2011

http://england.shelter.org.uk/get_advice/housing_benefit_and_local_housing_allowance/changes_to_local_housing_allowance

nightkid

Thanks for everyone's response.
The current rented property was ideal at the time and wasn't beyond our means but my brother recently moved in with his girlfriend, hence he doesn't pay rent into the house anymore. With me also considering going abroad then I think the house will become too much of a burden on them, based on the current financial situation.

I considered if it make sense for them to stay in the current property because we are renting it from a family friend who offer to rent it to us at cheaper rate for a given size house in the area. I've just crunched the LHA calculator. If the number is correct and the housing benefit approved then my parents should be able to continue living there.

I did consider storing my stuff in a secured lockup but if there are space at the house then it kind of make sense to give my parents the money for it instead?

The only thing I haven't really factored in is if there are tax/benefit law about giving my parents money. Whether the government see it as income for my parents. Or possible complications if we were renting the house at a lower market rate then usual when claiming housing benefits.

Thanks in advance again.
Regards,

BigAunty

nightkid wrote: »

...

I considered if it make sense for them to stay in the current property because we are renting it from a family friend who offer to rent it to us at cheaper rate for a given size house in the area. I've just crunched the LHA calculator. If the number is correct and the housing benefit approved then my parents should be able to continue living there.

..,

So long as they are in the rare position of receiving a 2 bedroom rate of LHA that covers the rent on a 4 bed property, this will be fine since clearly any need to pay a top-up will impact either them or you.

BigAunty

Are your parents working? If not, why not?