Renting to a family member & housing benefit

Whiteknight

ninab wrote: »

I've read quite a few conflicting posts on this subject so still no clearer, can anybody please clarify:

My husband and I will be purchasing a property within the next few months on a buy to let which we were going to rent out, we have been planning this for some time and have been saving for a deposit. My daughter who is now pregnant and on her own has had very little help from the local council they have only offered her BB accommodation, shes homeless.

Is there a possibility she could live in our BTL property and claim housing benefit?

You need to ask yourself would you evict your daughter and her child if she was unable to pay the rent - assuming housing benefit did not pay the amount you wanted/needed?

I would imagine it would be very difficult to do this or would the rent you "charge" alter depending on how much housing benefit your daughter was able to claim?

xylophone

Assuming the mortgagee allows renting to family, only the local authority can answer the question?

Saw this from Manchester City Council. http://www.manchester.gov.uk/info/500180/housing_benefit/4246/who_can_get_housing_benefit/2

"You may not get Housing Benefit if any of the following apply:

You used to live with your landlord as a family member, relative or friend and now pay that person rent."

nannytone_2

xylophone wrote: »

Assuming the mortgagee allows renting to family, only the local authority can answer the question?

Saw this from Manchester City Council. http://www.manchester.gov.uk/info/500180/housing_benefit/4246/who_can_get_housing_benefit/2

"You may not get Housing Benefit if any of the following apply:

You used to live with your landlord as a family member, relative or friend and now pay that person rent."

i thought that was about renting the property that the landlord used to live in too?
for example-
i lived with my ex in his house. if when we split he had moved out and i claimed housing benefit in order to stay in the property we had lived in together?

Housing_Benefit_Officer

xylophone wrote: »

Assuming the mortgagee allows renting to family, only the local authority can answer the question?

Saw this from Manchester City Council. http://www.manchester.gov.uk/info/500180/housing_benefit/4246/who_can_get_housing_benefit/2

"You may not get Housing Benefit if any of the following apply:

You used to live with your landlord as a family member, relative or friend and now pay that person rent."

Don't quote regs if you don't know what they mean.

These rules are to stop children trying to claim housing benefit while living with their parents.

ninab_2

Thanks for all reply's, Im calling the LA tomorrow for clarification, still confused. This will be a genuine rental property, if we don't rent to my daughter we will rent to someone else and go through an agent as suggested. She is currently homeless (staying at a friends) and been told she can claim full housing benefit once the baby arrives, she will be placed in a BB until a house becomes avail to her via the LA, if she went down the route of becoming our tenant then she wont have to go into BB. We are not trying to be devious or do anything underhand here.

xylophone

Don't quote regs if you don't know what they mean.

I did not say that I knew what it meant nor endeavour to interpret it.

I did point out that once the OP had ascertained the mortgagee's rules only her local council could properly answer her question.

I gave the OP a link to one local council's site and drew attention to one of their provisos.

And if as you so forcibly comment, the above proviso is

to stop children trying to claim housing benefit while living with their parents.

why are "friends" specifically mentioned?

Incidentally, is it necessary to be so peremptory?

And with regard to

Don't quote regs if you don't know what they mean

you might like to revisit https://forums.moneysavingexpert.com/discussion/comment/62758446#Comment_62758446 post 29 and 30?

FBaby

ninab wrote: »

Thanks for all reply's, Im calling the LA tomorrow for clarification, still confused. This will be a genuine rental property, if we don't rent to my daughter we will rent to someone else and go through an agent as suggested. She is currently homeless (staying at a friends) and been told she can claim full housing benefit once the baby arrives, she will be placed in a BB until a house becomes avail to her via the LA, if she went down the route of becoming our tenant then she wont have to go into BB. We are not trying to be devious or do anything underhand here.

Being a landlord is a risky business because you don't know how the tenants are going to treat your home and honour paying the rent. As a landlord, you are running a business and should accept the financial risk that comes with renting. Renting to a family member who claims housing benefits, you get the tax payers to pay your mortgage BUT with the security that comes with letting a reliable family member to move in. That's why it is not the same as you see it.

OldMotherTucker

nannytone wrote: »

possibly its a bit extreme.

but what would stop 2 sisters/brothers doing a houswap to get their mortgages paid?

The fact that HB forms have a section asking if you own another property . .

ninab_2

Update : Daughter has called and been told NO! Looks like its not an option for her, BB accommodation until a house from LA becomes avail which will be paid by HB!

nannytone_2

havent you got room for her?
i wouldnt want any member of my family in ... some of them are really dire