"Cash gifts" to someone on income support

milkbottletops

I've currently got a thread going on the house renting/selling board and was advised to come here for more advice.

I have a relative who wishes to rent a house privately off me. It has one more bedroom than they strictly need according to guidelines. It is also dearer than their LHA/HB rate. The parents of my relative have offered to pay the difference between the LHA rate and the market rent each month, so that their child can live in my home.

Under income support/child tax credit etc guidelines, is my relative likely to have any problems, because money is coming from their parents on their behalf? Or does the fact that the money comes straight to me not matter? Or doesn't it matter at all anyway?

Thanks for your help.

rogerblack

In principle, paying someone elses bills for them, directly to who the bill is owed to - rarely causes any issues with benefit - simply as there is no way they could have gotten their hands directly on the money.

The other issue is that HB has to be a 'real' rental.
It is common to find problems with this if renting to a relative.

Do you:
Normally rent out this property?
Have all of the required certificates, and would be protecting their deposit in the apropriate scheme.
Really have the intent to evict them if HB stops paying?

milkbottletops

Yes, we have (until recently) been letting out this property to tenants found via a letting agent. This is not a contrived tenancy situation and my relative has said they will declare they are renting from relatives on the application form, at my request.

We have an EPC and gas safety certificate still,valid and the deposit will be protected in an appropriate scheme. If there is not a valid reason for why either HB or the parental top up is not paid, then procedures to evict will be started, because I wouldn't take kindly to being mugged off by someone I've tried to help.

HB58

milkbottletops wrote: »

Yes, we have (until recently) been letting out this property to tenants found via a letting agent. This is not a contrived tenancy situation and my relative has said they will declare they are renting from relatives on the application form, at my request.

We have an EPC and gas safety certificate still,valid and the deposit will be protected in an appropriate scheme. If there is not a valid reason for why either HB or the parental top up is not paid, then procedures to evict will be started, because I wouldn't take kindly to being mugged off by someone I've tried to help.

In that case, it seems probably that this will be considered allowable by 'the powers that be'.

annie_cardiff

Really interesting to read this thread and its replies.
I was always under the impression that you were not able to rent from a relative if claiming HB. Can anybody confirm this as it would really help me out of a major housing crisis !

Mojisola

http://england.shelter.org.uk/get_advice/housing_benefit_and_local_housing_allowance/what_is_housing_benefit/housing_benefit_if_renting_from_a_family_member