Housing Benefit and Sub-tenants

[Deleted User]

Hi folks

I was just playing with my council's benefit calculator and am really surprised at results. First, I put my details in and added another person as a joint tenant. Result, I would get LHA shared room rate. No surprise there.

Then I put in the exact same details but changed the other person from joint tenant to sub-tenant. I thought the result would be the same, but it's actually more.

Can't find the rules on this. Does anyone know? Seems very odd.

Morlock

Power_Kitten wrote: »

Then I put in the exact same details but changed the other person from joint tenant to sub-tenant. I thought the result would be the same, but it's actually more.

Did you add the sub-tenant's rent as income? Only the first £20 of rental income is disregarded.

[Deleted User]

Sorry, don't think I've been clear. When I say I put other person as sub-tenant, the calculator then said I would be entitled to more housing benefit.

To answer your question, I didn't put sub-tenant as income. The calculator asks what is charged to them but it is not in the same section as earnings. Regardless, I would have thought that if they were treating that as extra income, I'd be entitled to less housing benefit.

It must be that the shared room rate rule doesn't apply if you have a sub-tenant. Which is really strange as it seems like a rather easy loophole for people to be able to claim more.

Morlock

Power_Kitten wrote: »

I would have thought that if they were treating that as extra income, I'd be entitled to less housing benefit.

Your housing benefit will not be reduced, but any other benefits that you claim may be affected by income from a sub-tenant i.e. Income Support, ESA or JSA.

Power_Kitten wrote: »

It must be that the shared room rate rule doesn't apply if you have a sub-tenant. Which is really strange as it seems like a rather easy loophole for people to be able to claim more.

Yes, I am sure that is correct, a sub-tenant is classed as a non-dependant, so you would be entitled to the one room rate of LHA.

[Deleted User]

Hmm. I wonder how easy it is, what kind of paperwork they require. I'm sure they want to see some kind of evidence, but if it's a sub-tenant, there's no contract... I am tempted to try as it would make life less difficult. LHA shared room rate is not realistic at all.

It does just seem really strange, as anyone could decide to replace a joint tenant with a sub-tenant and therefore get more of their rent paid. But I guess like you say, it would be classified as income and offset against other benefits.

[Deleted User]

Oh, I can't seem to find any rules regarding non-dependents that state a higher rate of LHA. Dependents, sure. It doesn't really make any sense!

notanewuser

Power_Kitten wrote: »

Hmm. I wonder how easy it is, what kind of paperwork they require. I'm sure they want to see some kind of evidence, but if it's a sub-tenant, there's no contract... I am tempted to try as it would make life less difficult. LHA shared room rate is not realistic at all.

It does just seem really strange, as anyone could decide to replace a joint tenant with a sub-tenant and therefore get more of their rent paid. But I guess like you say, it would be classified as income and offset against other benefits.

A tenancy agreement which allows sub-letting would be the first thing, I'd have thought. Good luck finding one of those.

[Deleted User]

True. Do you think the council care about that though? I would have thought that is an issue between the tenant and landlord.

notanewuser

Power_Kitten wrote: »

True. Do you think the council care about that though? I would have thought that is an issue between the tenant and landlord.

Yeah, I expect the council will just take your word for it.

Oh deary me.

The council are not going to pay you more money without you being able to prove that you are entitled to it. AFAIK they will require a copy of the tenancy before paying a penny in LHA anyway (to make sure that you are actually required, legally, to pay rent for the place that you live). In order to prove that you are entitled to a higher rate because of having a sub-tenant they are going to want to know a) that there is room for the tenant and b) that they are actually entitled to be there. So they're going to want to see a tenancy agreement that says you can.

You won't find one of those because no (professional) landlord wants to have no control over who lives in their property. Their insurer is also likely to want to know that certain standard checks have been made.

So no, it's not just between you and the landlord, and yes, the council will care.

lighting_up_the_chalice

It's not the tenancy, but the relationship between the tenants. A joint tenancy between a couple would attract the single room rate as they will be expected to share a room. A joint tenancy between two friends NOT in a relationship would attract the 2 room rate because they need a room each.

[Deleted User]

Okay, okay, it was a silly question. I know. Yes, housing benefit do require tenancy agreements, and yes, I'm sure that the rest of what you say is true, if anything just because it will mean not having to pay out more.

I don't think a joint tenancy between non-couples means a two-room rate... I think that each tenant would apply as a single person, and therefore each only be entitled to shared rate.