Renting flat

abukco

My friend has brain damage and some physical damage following a stroke & heart attack at the same time aged 39. He is in temp accommodation at the moment staying with his half sister after his ex partner kicked him out a few years ago.

I have recently lost both parents and am taking over their house so I now wish to rent out my 1 bed flat. I would like to rent it to my friend, who I know and I would be happier having him my flat rather than someone unknown.

He is currently receiving UC & PIP & I receive carers Allowance for helping him weekly.

My question is: regarding Housing Benefit. I would like to say that no bills are included in the rental price so he gets the full amount of housing benefit. For rent available and due to his brain injury he should be exempt from council tax.

I would only require him to pay for Council tax (which he should be exempt) and electric, internet bills and I would then be happy to cover all other bills such as service charge, water rates, contents insurance, TV licence, myself rather than me including them in the rental price. It would also aid in my care of him as it would move him nearer in location as he currently resides in a different borough.

My question is: would it be acceptable for me to cover these other bills if I have said they are not included in the rental price?

Would it be perceived by Housing Benefit that they were included if I was paying for them? In reality, I would be happy to cover them in exchange for having him in his own home and more independence and me having someone I know long term in my property.

The current Local housing Allowance for a one bed flat in our borough is: £1047.11, which is what I would charge him with no bills included in the rental price.

He has no savings, no home, can't work anymore, brain damage and physical disabilities and I feel I would be happy to cover these other bills to help get him settled in his own home long term.

My flat is also ground floor which helps with his mobility.

Would Housing Benefit be happy with this arrangement? 

CIS

abukco said:

My friend has brain damage and some physical damage following a stroke & heart attack at the same time aged 39. He is in temp accommodation at the moment staying with his half sister after his ex partner kicked him out a few years ago.

I have recently lost both parents and am taking over their house so I now wish to rent out my 1 bed flat. I would like to rent it to my friend, who I know and I would be happier having him my flat rather than someone unknown.

He is currently receiving UC & PIP & I receive carers Allowance for helping him weekly.

My question is: regarding Housing Benefit. I would like to say that no bills are included in the rental price so he gets the full amount of housing benefit. For rent available and due to his brain injury he should be exempt from council tax.

I would only require him to pay for Council tax (which he should be exempt) and electric, internet bills and I would then be happy to cover all other bills such as service charge, water rates, contents insurance, TV licence, myself rather than me including them in the rental price. It would also aid in my care of him as it would move him nearer in location as he currently resides in a different borough.

Council Tax liability is a matter of statue.

The property (not him) would be exempt only if he meets the criteria to be regarded as SMI for council tax purposes. Unless that happens he'd need to claim council tax reduction, and that doesn't always cover the charge in full.

Diamandis

Saying that the bills aren't included when they are would be benefit fraud. If your property is truly worth that amount of rent, it doesnt make sense for you to then pay more on top. Is your friend not able to cover the bills himself? 

Also some service charges can be included in the rent that they will pay but it depends on what the service charges are for and how reasonable the cost is.

pmlindyloo

My feeling is that you are overthinking this.

For your friend to claim the housing costs element of UC he would have to prove a liability to pay rent. 

This is usually through a tenancy agreement with the landlord.

You would have to set up a tenancy agreement which details the rent charged each calendar month.  You could do some research as to what a one bed flat in the area costs to rent and use this figure.

There are examples of tenancy agreements on the internet (I am presuming you are not going to use a letting/managing agency?)

Rent in theses circumstances does not usually include bills.  In the tenancy agreement it may state what the tenant is separately liable for - utility bills etc.

If you wish to pay any of these bills then you can do this separately - insurance etc.
It does not have to be part of the tenancy agreement..

Council tax is completely separate from UC and your friend would need to apply for this.

UC will be looking to make sure that this is not a 'contrived tenancy' so your tenancy agreement should also detail what happens if rent is not paid/notice to quit etc e

MalMonroe

Hi, you sound like a wonderful friend to have. This information about housing benefit may help since you say he's already in receipt of Universal credit and Universal Credit is taking over where housing benefit will leave off 

 - https://www.gov.uk/housing-benefit

You could do worse than ask if you and your friend could have an appointment with someone at the council to speak about his benefits, exactly what his entitlement is and how you can best support him when he moves. Your council will also be able to advise you about council tax. They will help you with any forms you need to complete. It's always best to know exactly what you can and cannot do, I find benefits very complicated. . . 

Someone called poppy12345 on this forum is very knowledgeable indeed about all benefits and allowances - I hope she comes along very soon as she will be able to advise you further.