Can a council tenant on housing benefit rent another property privately?

45002

https://forums.moneysavingexpert.com/discussion/5262568

lucinka77 wrote:

The property I'd be renting (for an affordable amount) would be a music studio where I could sleep as well. Do you think it would be a problem for the council that I have two addresses..?

lucinka77 wrote:

Actually it is a cottage that our friend would rent us for almost nothing. That's why it WOULD be like a second home. We'd be using one room as a recording studio - homemade, not commercial. Do you still think this would be seen as fraud by the council...?
I just need to know whether it is LEGAL to have TWO addresses - as a council tenant in one flat, and as as a private tenant in the other, regardless whether I use it for business or not. Many thanks!

Pixie5740

Council housing isn't just occupied by those on low incomes or those in need. You'd be surprised how many people living in council properties could afford to buy or rent at full market rate due to tenancies being succeeded by children when their parents die.

Anyway, back to the OP's original question now that 45002 has provided a link that sheds more light on what the OP is trying to achieve then it sounds like the OP isn't looking for business premises at all but a second home that just so happens to have a studio in it, and not even a commercial studio at that.

In which case rent and council tax would be payable on both properties. Business rates may also be applicable to the second home if the studio is used commercially as well as all the insurances that go with that.

Any income from the business could affect benefits the OP is receiving. As for being a council tenant whilst renting another property, the OP would need to check his/her tenancy agreement.

Jonbvn

I am waiting for the word "sublet" to appear very shortly;)

Guest101

OP you arent living at two addresses.

You have a primary address that is your main residence.

You have a second privately rented property.

Where you sleep is irrelevant.

duchy

If you were living there -to facilitate someone else living at the property you get housing benefit for -eg you slept at the "business" address, your mail went to the business address (bank, dr etc) for example if a relationship broke up or if you were illegally subletting and someone was paying you (in cash or kind) then you'd be ineligible for benefit and the council would probably investigate and subsequently prosecute as fraud.


Council tenants can and do rent business premises and holiday homes legally but as you want mail to go to the new address it begs the question why you would need to do this and who would be occupying the council property (and if they would be paying you to do so) .


If there are legitimate reasons - ask the council -if it's a scam then don't.

teddysmum

Jonbvn wrote: »

I am waiting for the word "sublet" to appear very shortly;)

and/or the OP wants to keep their right to buy, but doesn't want to live in the premises which could be bought.

theartfullodger

You can have as many tenancies as you like: But assuming you genuinely live at the council property then the other ones will not be (cannot be, may not be, legally impossible to be regardless of what paperwork says) an AST tenancy. You could have, say, 13 tenancies: But I for one would question if you can afford to rent elsewhere how come you are still getting HB? (Yes I know about a million people are working & getting some HB).

I would hope & expect council would start querying anyway why you have multiple properties & still get HB: Clearly you could be in the clear & innocent..

Why would your "friend" want to rent for way, way, below market rent?? He must be barking - or some other fiddle going on

Guest101

theartfullodger wrote: »

You can have as many tenancies as you like: But assuming you genuinely live at the council property then the other ones will not be (cannot be, may not be, legally impossible to be regardless of what paperwork says) an AST tenancy. You could have, say, 13 tenancies: But I for one would question if you can afford to rent elsewhere how come you are still getting HB? (Yes I know about a million people are working & getting some HB).

I would hope & expect council would start querying anyway why you have multiple properties & still get HB: Clearly you could be in the clear & innocent..

Why would your "friend" want to rent for way, way, below market rent?? He must be barking - or some other fiddle going on

Hey pal,

Can you remind me why they cant be an AST?

Cheers

HappyMJ

This is all very confusing. You can rent business premises and the rent is a legitimate business expense which can reduce your profit and potentially entitle you to housing benefit on the property that you rent and live in whether it's from a social landlord or a private landlord. Why mention that you'll be sleeping at work every now and again?

A business premises could be a flat or even a house where the bedrooms have business like furniture in them such as your music studio with a toilet/bathroom and a kitchen. Nothing defines what a business premises actually is. Although most landlords most can not rent a residential property to a tenant who won't actually be living there and using it as a business.

I don't think using a serviced office as a music studio would be a good idea so a room in someone else's house is a better choice.

HappyMJ

Guest101 wrote: »

Hey pal,

Can you remind me why they cant be an AST?

Cheers

An AST is a residential tenancy...for living in as someone's home it's not for running a business from.