Universal credit housing element - close relative renting

Legacy_user

Answered..

FBaby

Will he be charging you the sane than what he is charging his current tenant?

System

The rent will be the same amount as he currently charges his tenants.

The current tenants do have a deposit with him in the DPS scheme.

pmlindyloo

This is the Advice for Decision making as regards the housing element of Universal Credit.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/754947/admf2.pdf

So have a read.

From what you have said it seems that there will be a commercial agreement.

Will the move mean that you will receive more in 'housing benefit' than you are at the moment?? If you are then it may be questioned as to why you are moving unless the reason for moving is to change jobs/you are overcrowded/you have no accommodation (i.e being evicted).

To be honest, each case will be looked at individually. Personally I can't see a problem if you can show that it is a commercial agreement. The fact that your partner's brother already lets it out is also good evidence (are you sure the present tenants will move out?)

However, I am not a decision maker!

tboo

If it was a standard HB claim then the renting would be no problem.

But under UC I have no idea - the following doesn't mention renting from close relatives but I suspect they may have the same procedures as LA's (or there may be a guide lurking but I can't find it)


https://www.gov.uk/government/publications/universal-credit-and-rented-housing--2/universal-credit-and-rented-housing-guide-for-landlords


ETA pmlindyloo has added on a guide

pmlindyloo

This is the part that is, IMHO, important in your case.

Contrived liability
F2140 A claimant will be treated as not liable to make any payment or payments where the DM is satisfied that the claimant’s liability to make the payments was contrived1 in order to 1. secure the HCE in an award of UC or 2. increase the amount of the HCE in an award of UC. 1 UC Regs, Sch 2, para 10(1)
F2141 F2140 does not apply if the claimant is treated as not liable to make the payment or payments because of F2105 et seq1. 1 UC Regs, Sch 2, para 10(2)

F2142 Contrivance can be on the part of the claimant, the person to whom payments are made, or both acting together. There must be something about the arrangements relating to the liability that indicates it seeks to abuse the HCE of UC. It is the DM’s responsibility to show such arrangements exist before deciding that abuse is involved. This means the DM must establish the facts and determine the dominant purpose of the arrangement before deciding to treat that person as not liable to make the payment.
F2143 Account must be taken of all the available evidence when making a decision that a liability has been created to abuse the HCE of UC.
F2144 The issue is not whether a liability exists, but whether a liability was created to abuse the housing costs element of UC. The DM must decide whether a liability exists before considering whether or not it is contrived, although the two questions often involve considering the same facts.
F2145 The DM should also look for arrangements the claimant has entered into 1. which create a liability they cannot meet without the HCE of UC and 2. when they could have avoided the situation and still been adequately accommodated.
F2146 This would not normally be the case when, for example, even though they rely on HCE of UC to help meet their liability to make relevant payments a person
1. previously had no accommodation or
2. has moved home 2.1 to take up work because they could not travel to work from their previous address or
2.2 because their family was overcrowded at their previous address 2.3 but the move does not result in an increased amount of HCE.

System

Thank you for all these replies - I have lots of reading to do !

To answer everyone’s questions -

The housing element currently recurved is £99 a week which gives us about £430 per month.

The new rate if we move will be much less at £80 per week which gives us £346.

The reason for the move is because we don’t have cars and we need to be back closer to family for both of our mental health.

Work wise partner is looking to start work in the next year full time but in the area we will be moving to so the move wouldn’t be for an job that’s secured.