Local Housing allowance

RDB

Why not get a letting agent to manage it for you, then your Mum would rent off the agent and the Tenancy Agreement will be between your mum and the agent.

One question on the form asks are you related to the land lord? If you put yes then there is an investigation and its possible it will be rejected. It's just my opinion but if an Agent is managing it for you, then your Mum can honestly say 'no'.

suelees1

The landlord is still you though (an agent is obviously something completely different) and your mum should disclose this on the form. There's nothing in the regs to say you can't claim benefit if renting from a close relative as long as you're not living in the property. However this is only as long as the tenancy hasn't been created to take advantage of the benefit system. In your mum's case I think she might struggle as she's never been liable to pay rent for the property. They might accept it's a genuine tenancy once you move out but I really don't think it'll be straightforward.

The LA will look at:
1) whether it's a commercial tenancy
2) whether it's contrived.

real1314

my advice for renting to a relative is to get a copy of zebedee, ward and lister's guide to HB and CTB, should be a copy in your local library, or wh smith stock it.

look at contrived tenancies, relatives etc.

there are hurdles you have to jump over, but nothing insurmountable as long as it's a genuine situation.

Chrysalis

For a single childless adult over 25 do they calculate on one bed flats or bedsits? Or both using a median price?

I expect some people maybe in for a shock when LHA turns out to be a much lower payment than HB.

takoo

I believe I am right in suggesting that the landlord in name cannot the the professional or commercial managing agent in name.

It may be ill-advised therefore to formally declare that the "tenant" is not "related" to the "landlord" - her son.

It would seem that the CAB or a lawyer should advise.

Takoo

RDB

So if they will pay more depending on where you live, wont loads of people start moving to the most expensive places? Then they will get most benefit, there is no point living in cheap place when they will pay more for you to live somewhere better?

Chrysalis

RDB the areas are very large for example what they consider my local area is my entire city, so I would have to change city to get a different area. In my opinion what they count as an area is too large but after reading your post I can see why they probably did it to prevent that abuse.

takoo

Hi All

Some broad market rental areas (BMRA) are big but they join up in 'corners'. I have been told that one town is covered by four such BMRAs.

In such places some tenants will find it worthwhile to move (up or down the rental column) for whatever reason.

Takoo

Kimitatsu

If you receive more LHA than the rent you pay you keep the difference.

Please be careful about this bit! All of the information that I have seen so far actually states that you can keep a percentage of the difference (cant remember whether it is 10 or 15% off the top of my head) but that the rest must be paid back.

Also LHA is only paid to private tennants at the moment so if you are a council tennant or under a registered social landlord this will not apply to you until April 2009 (current date for roll out).

In reality what will happen is that landlords will inflate the prices so that all rents reach the LHA within the next year.

Moscow_flyer, I seem to remember that on many HB applications there is a part that specifically asks whether you are related to the tenant/landlord. Will look it up when I am back at work on Monday!

suelees1

Kimitatsu wrote: »

Please be careful about this bit! All of the information that I have seen so far actually states that you can keep a percentage of the difference (cant remember whether it is 10 or 15% off the top of my head) but that the rest must be paid back.

In reality what will happen is that landlords will inflate the prices so that all rents reach the LHA within the next year.

I've been on a training session today. There's a lot to take in so I'm not 100% sure of it all yet.

We were told the new cap is £15 pw which (I think) is nationwide.

I too was concerned that landlords would increase the rent to the LHA level. However payments are based on the individual tenants circumstances. The amount of LHA is awarded on room requirements so can only be confirmed once the LA has details of each occupant under the tenancy. Even ages of some adults and children make a difference as does the kids gender when it comes to sharing rooms. The landlord would have to know all this to be able to increase the rent to what the LA would pay.