How is rent on council housing calculated?

AubreyMac

I have my own flat that I purchased with a mortgage. 

My parents live in a council house (well, its a housing assoc but I'm not entirely sure what the difference is). They live there alone and it's a 3 bed. 

I'm seriously considering selling up my flat (I prefer to sell as opposed to let out but may go for the letting options after I get the property valuated next few weeks) and moving in with my parents. There are several reasons for this - I plan to sell and move anyway so this way is chain free, my parents are elderly so it'll be nice to be there for them, I like their house and area as it has better transport links and amenities than my flat. 

I understand if I move into my parents, I will have to inform the council/housing assoc. What I want to know is how is my rent calculated? is it based on my earnings or is it based on the property regardless (much like how private renting is). 

Now, I know the most obvious thing to do is ask the council/housing assoc but they don't answer general queries and for now I'm reluctant to give specific details. I think (please correct me if I am wrong) that if it's done on my earnings and I have to declare savings from my flat sale then its possible that my rent to the council could be just as much, or more, than renting privately? in which case it wouldn't be worth my while moving in with them. 

davidmcn

There'll be a standard level of rent, which is what anyone pays out of their own pocket if they don't qualify for relevant benefits. It will almost invariably be less than private sector rents for equivalent properties (if only because the council isn't aiming to make a profit out of you).

Not sure though what you mean by "my" rent - if you move into your parents then it's still going to be their tenancy and their rent. I expect however that your parents will charge you less than a private landlord!

AubreyMac

Thank you. So is there a maximum/cap then? or even a rule of thumb such as 'you pay 2/3 of the private equivalent'. 

What I mean by 'my' rent is this that I presume that what I pay to the council/housing assoc is based on just me and nothing to do with my parents (I could be wrong). I think (not certain) that my parents claim  housing benefit that covers their council rent so assume this will not change just because I move in. My parents will not charge me anything themselves, as I'll be there to help out plus I already take care of a lot of their shopping and medical appointments anyway. 

I prefer to move in with my parents if I sell my flat as it's more secure and longer than private rent. once I sell up I want to take my time on figuring out my next steps of where to buy next, which might take a couple of years. 

Slithery

That's not how it works at all. The rent for the property will be a fixed amount, it won't change when you move in.
What will change is the amount of benefits that your parents are entitled to, this will go down as the household wage is considered - including yours.

davidmcn

If it's your parents' tenancy then it's still your parents' rent. Yes, the fact you've become part of the household will affect their benefits entitlement. Your parents should know (or be able to find out) what the full amount of rent is. Don't think there's any particular rule of thumb.

elsien

You won't be paying any rent to the housing association because you will not have a tenancy. The tenancy will remain in your parent's name for the same amount and they will still be responsible for paying it.

What it may affect, as already said, is any means-tested benefits they are claiming, and potentially also the council tax if they are claiming any discounts for that. So they would need check how much income they will lose and then it is between you and them how that difference is made up.
You would be classified as a non-dependant adult in the household.
https://www.entitledto.co.uk/help/non-dependants