Housing Benefit

Orville

Scenario is,

The parents buy a second house for renting out. House is kept in their name. I claim housing benefit as a single parent. If the parents rent out said house and I moved in as a tenant, can I still claim housing benefit even though it's their house..?

paddedjohn

It's possible but will be scrutinised very closely, where are you living now, will they be charging you the going rate, would the be prepared to evict you if you didn't pay the rent?

Orville

paddedjohn wrote: »

It's possible but will be scrutinised very closely, where are you living now, will they be charging you the going rate, would the be prepared to evict you if you didn't pay the rent?

Living at home at the moment with my son. Yes they would evict if rent wasn't paid, but that wouldn't happen as i would pay and not take advantage. Going rate..? Don't know, probably just under as i am their son, but more then what i would get in benefit...

McKneff

they would have to do it properly, landlord insurance, gas safety certificates etc. etc.

Tell them to google 'renting out a house I own' or Landlord responsibilities.

Orville

Thanks,

It's a totally legal thing to do then. I get the benefit of rent being a bit cheaper, they get the benefit of having a tenant they know will not abuse the property etc..

jacques_chirac

Orville wrote: »

Living at home at the moment with my son. Yes they would evict if rent wasn't paid, but that wouldn't happen as i would pay and not take advantage. Going rate..? Don't know, probably just under as i am their son, but more then what i would get in benefit...

It is quite possible for you to claim LHA while living in a property owned by your parents, but it needs to be a commercial agreement. The LA will look at all the circumstances in deciding if you are eligible, but your parents treating you more favourably than another tenant would point towards it not being commercial.

I would suggest your parents speak with the LA before making the purchase.

paddedjohn

Would your parents still buy this property if you didn't move in?

martinthebandit

Orville wrote: »

Scenario is,

The parents buy a second house for renting out. House is kept in their name. I claim housing benefit as a single parent. If the parents rent out said house and I moved in as a tenant, can I still claim housing benefit even though it's their house..?

I hope not

Orville

jacques_chirac wrote: »

It is quite possible for you to claim LHA while living in a property owned by your parents, but it needs to be a commercial agreement. The LA will look at all the circumstances in deciding if you are eligible, but your parents treating you more favourably than another tenant would point towards it not being commercial.

I would suggest your parents speak with the LA before making the purchase.

Ok cool, so even if it were the going rate i'd be ok..? Just as long as it's done properly. :-)

Just one thing, you highlight the bit where i said 'a bit under as i am their son'. Say there were many other properties for rental in the area and competition was fierce, and they dropped their rental price to undercut the competition, would that not be the same as charging me slightly less?, Or is it just the fact i would be their son.

Orville

martinthebandit wrote: »

I hope not

Why is that?. What is the difference between me staying in their place compared to staying in another.?. Either way benefit would be claimed.

martinthebandit

Orville wrote: »

Why is that?. What is the difference between me staying in their place compared to staying in another.?. Either way benefit would be claimed.

Yes and either way you are being supported, either by the state or your parents