Housing Benefit

Orville

Housing_Benefit_Officer wrote: »

Yes you can.

Thank you for that.

I just want to be sure that it can be done legally and totally above board.

Orville

GwylimT wrote: »

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.

Hi,

I am 41. Yes i am his full time carer. CB etc is all in my name. He stays with mum holiday times only.

Orville

paddedjohn wrote: »

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

Well they do invest their money in, not sure exactly but has something to do with the bank. They have been looking into buying a property and renting, but in all fairness haven't got round to it.

The idea just came to me as they would know their tenant etc and could rest easy that the property would be looked after.

Orville

jacques_chirac wrote: »

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.

Just remembered something.

I used to rent on the isle of wight a couple of years ago now. I was told by the LHA that the property i rent is totally upto me, however much more or cheaper it is LHA entitlement is always the same. I get no more or no less because of the amount of rent.

In fact the guy said that the lower the rent i found on the property the better for me it was as i could keep a percentage of the save amount..?

Sky_

Orville wrote: »

Just remembered something.

I used to rent on the isle of wight a couple of years ago now. I was told by the LHA that the property i rent is totally upto me, however much more or cheaper it is LHA entitlement is always the same. I get no more or no less because of the amount of rent.

In fact the guy said that the lower the rent i found on the property the better for me it was as i could keep a percentage of the save amount..?

I don't think this is possible any more, as far as I remember it was an option for a short time, when the new LHA rates were introduced but the idea was scrapped fairly quickly.

Orville

Sky_ wrote: »

I don't think this is possible any more, as far as I remember it was an option for a short time, when the new LHA rates were introduced but the idea was scrapped fairly quickly.

Hi,

Yes i am just saying as the other poster said that it wouldn't be looked on favourably if the parents charged a slightly lower rent to me. I am just thinking what is the difference as a couple of years ago they actively encouraged it..lol, but i do understand where he's coming from.

Housing_Benefit_Officer

Orville wrote: »

Just remembered something.

I used to rent on the isle of wight a couple of years ago now. I was told by the LHA that the property i rent is totally upto me, however much more or cheaper it is LHA entitlement is always the same. I get no more or no less because of the amount of rent.

In fact the guy said that the lower the rent i found on the property the better for me it was as i could keep a percentage of the save amount..?

If your LHA rate was £100 and you found a property for £80 you used to be able to keep up to £15 of the difference between the LHA rate and rent charged. But the Government scrapped that rule.

Housing_Benefit_Officer

Orville wrote: »

Hi,

Yes i am just saying as the other poster said that it wouldn't be looked on favourably if the parents charged a slightly lower rent to me. I am just thinking what is the difference as a couple of years ago they actively encouraged it..lol, but i do understand where he's coming from.

It doesn't matter if the rent was more or less than the LHA rate. A lower rent isn't a sign of a contrived on non commercial tenancy and a low rent wouldn't be a reason to refuse someone's claim.

Housing_Benefit_Officer

I would look at the nature of the tenancy. If the property has a gas safety certificate and an electrical check. If the landlord had a buy to let mortgage and if the landlord had landlords insurance. Was a deposit paid and a months rent in advance etc.

princessdon

As long as slightly under with a proper contract, they hold your deposit, pay income tax on your rent etc it shouldn't be an issue if you have proof.

If for example the regular rent was £600 pm - your HB is £250 and that is what they charge, no deposit, no contract etc then yep they'd look.

Give them a ring, mine are really helpful, I was worried about increasing the rent I charge as my long term renter (family friend), will be going onto pension credit so wanted advice. They were happy with the fact it was a % increase shown year on year and even though well under market rent, they understood that I have less overheads and regular income with an amazing tenant who keeps it spotless, does a lot of the maintenance and I never worry about.

My other BTL is student accommodation and gives me headaches, this one is a pleasure, yes I charge less for a family friend, but I get a lot back from her and suspect it all evens out.