Housing Benefit

Orville

martinthebandit wrote: »

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

Which is legal..? What's your problem with it. I should point out so you don't get too high on your horse that i work 20 hrs a week so would not be claiming full benefit..;)

jacques_chirac

Orville wrote: »

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.

No one here can say if it would be ok - ultimately it is for the LA to decide if the tenancy is contrived or not.

I don't believe your suggestion of a lower rent due to it being a competitive market would wash - rentals are priced according to supply and demand, so the market rent level would already reflect a ready supply of property.

jacques_chirac

Orville wrote: »

Which is legal..? What's your problem with it. I should point out so you don't get too high on your horse that i work 20 hrs a week so would not be claiming full benefit..;)

Hopefully you'll find full time work soon, so this will not be an issue for you.

Orville

jacques_chirac wrote: »

No one here can say if it would be ok - ultimately it is for the LA to decide if the tenancy is contrived or not.

I don't believe your suggestion of a lower rent due to it being a competitive market would wash - rentals are priced according to supply and demand, so the market rent level would already reflect a ready supply of property.

Hi,

Yes sorry that was just an 'off the cuff' thought after what the previous poster said. I was just hypothesising on whether you could do that to get a tenant in, any tenant, not necessarily myself if the properties in any area weren't renting.

GwylimT

You can only claim housing benefit if the property/room is owned by family if you are paying the going rate not a reduced amount of rent as a favour, and if it can be proven that the room/property is used for rental purposes and this isn't just a set up to take advantage of the housing benefit system which is called contrived letting.

The below is taken from the DWP fraud guide for landlords

"Contrived/Non-commercial tenancy
15.
A contrived tenancy can be created to
take advantage of the HB scheme,
(for example, where a false liability
is set up). This could be where a
person buys a property with the sole int
ention of moving a specific person
into it as a tenant. A tenancy is created and HB is claimed, for example, to
cover the cost of
the mortgage payments.
"

Orville

jacques_chirac wrote: »

Hopefully you'll find full time work soon, so this will not be an issue for you.

Yes i hope so too. Infact i may have a second job working the night shift, but have been told there is a hold on all new employment at the supermarket i currently work in. Management are going to try to persuade the GSM there is a need for one more person. If it happens i have been told it would go to me, so then i would have 2 jobs in the same shop.

Housing_Benefit_Officer

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..?

Yes you can.

Orville

GwylimT wrote: »

You can only claim housing benefit if the property/room is owned by family if you are paying the going rate not a reduced amount of rent as a favour, and if it can be proven that the room/property is used for rental purposes and this isn't just a set up to take advantage of the housing benefit system which is called contrived letting.

The below is taken from the DWP fraud guide for landlords

"Contrived/Non-commercial tenancy
15.
A contrived tenancy can be created to
take advantage of the HB scheme,
(for example, where a false liability
is set up). This could be where a
person buys a property with the sole int
ention of moving a specific person
into it as a tenant. A tenancy is created and HB is claimed, for example, to
cover the cost of
the mortgage payments.
"

Hi.

There would be no mortgage as the parents have more then enough to buy it outright.

The house i am currently in has 3 bedrooms. The parents sleep in separate rooms and my son sleeps in with me. Either way this is unsustainable, so we will have to move out and with my present situation i would have no choice but to put in a claim. As i said earlier either way HB would be paid out by the council. I just see at as a safety net for both myself and them as i would take care of the property and should anything go wrong, i know they would get it sorted without delay.

Housing_Benefit_Officer

GwylimT wrote: »

You can only claim housing benefit if the property/room is owned by family if you are paying the going rate not a reduced amount of rent as a favour, and if it can be proven that the room/property is used for rental purposes and this isn't just a set up to take advantage of the housing benefit system which is called contrived letting.

The below is taken from the DWP fraud guide for landlords

"Contrived/Non-commercial tenancy
15.
A contrived tenancy can be created to
take advantage of the HB scheme,
(for example, where a false liability
is set up). This could be where a
person buys a property with the sole int
ention of moving a specific person
into it as a tenant. A tenancy is created and HB is claimed, for example, to
cover the cost of
the mortgage payments.
"

Just because the rent is lower doesn't make it contrived or non commercial.

GwylimT

Two questions I should have asked them before but I forgot.

How old are you?
Does your son live with you all of the time?

If you are under 35 and a non-resident parent you can only claim the housing benefit rate in your area for a room in a shared property.