Renting a house from parents and housing benefit

Housing_Benefit_Officer

seven-day-weekend wrote: »

The only way you would get HB for this property is a) if it is up for rental on the open market (or has been), b) if they charge you the same rent they would charge anyone else and c) if they would evict you if you didn't pay.

In other words, it has to be proven to be a proper commercial rental business, not just a place used to help their daughter out, which would never be rented to anyone else should said daughter move on.

a) The property doesn't have to have been rented out on the open market.
b) They can charge whatever rent they want, even below market rent, the rent level isn't a deciding factor.
c) This is correct.

Housing_Benefit_Officer

nannytone wrote: »

small world!
CJ's was owned by friends of mine ( frank and miriam) and i worked for them for 6 years! bloody hard work but we always had a good laugh. i worked there from 1995-2001, they also had another cafe further along near the white hart. they sold up and moved back to cyprus . the new owners werent anywhere near as good, both to the staff anf with the food. im sure its still there though as frank only sold the business but leased the premises, im sure it was for 15 years. CJ's is technically 7 kings rather than ilford though

I was in Seven Kings but found it far easier to say Ilford. Last had a meal at CJs in 2010 - often think when travelling to London and stop off for a massive all day breakfast

lighting_up_the_chalice

I'm not convinced that claiming HB for a daughter to rent an un-mortgaged second home that hasn't been previously tenanted under the circumstances described will be quite as straightforward as HBO states. However, to answer the secondary question....

Dawniedawn wrote: »

Does it cause problems where you are unable to get access to certain other benefits and/or help, because you don't receive housing benefit? And do they count you as a dependent on your parents?
Also does it affect your parents in anyway? In term of the government/taxman assuming that they must be making money in someway?
Thanks x

...... No, it won't effect your other benefits and you wouldn't be considered a dependent of your parents. However, the rent would be considered income and should be declared to HMRC for taxation purposes. Certain costs can be offset against the rental income.

Housing_Benefit_Officer

lighting_up_the_chalice wrote: »

I'm not convinced that claiming HB for a daughter to rent an un-mortgaged second home that hasn't been previously tenanted under the circumstances described will be quite as straightforward as HBO states.

24 years working in various Housing Benefit Departments says it is