Renting to a family member on benefits

CliffordR

I wonder if you can help answering my question please that may affect quite a number of parents as they try to assist their children in these uncertain times in the property market.

My single mother daughter is on Universal Credit, including housing benefit, and is planning on moving to my local area. I own an unmortgaged property that I could rent to her and having checked with the DWP this is acceptable provided that certain conditions are met, such as being under the same obligations as if renting to a non-family tenant.

What would happen if at some stage in the future, because I’m not in a position to at the moment, if I decided to divest the property and gifted it to her? Naturally, she’d lose her housing benefit, but would any other things be affected?

poppy12345

Unless she's currently either living in supported or temporary housing then her rent will be paid as part of her UC entitlement known as housing element. Housing benefit was payable from local Authority and are 2 different benefits.

For your daugher to claim for help with the rent then, You must be renting on a commercial basis to get housing related benefits.

This usually means you have a legally binding tenancy agreement.

Your family member doesn't have to make a profit from renting to you. It can still be a commercial letting even if you're charged below the usual market rent. But your relative should intend to take on the rights and responsibilities of a landlord.

The biggest question here is if she got behind with her rent, would you evict her?

Either way, it will be down to a DWP decision maker whether her claim for help with the rent here, would be accepted.

https://england.shelter.org.uk/housing_advice/benefits/claiming_benefits_if_you_rent_from_family

CliffordR said:

 having checked with the DWP this is acceptable provided that certain conditions are met,

Was this a decision maker that told you this? Or did you ring UC and ask?

Rubyroobs

Why would you give it to her when you can get money paid by the government for renting it to her indefinitely !! ?

poppy12345

Rubyroobs said:

Why would you give it to her when you can get money paid by the government for renting it to her indefinitely !! ?

That's not guaranteed unless a decision maker has agreed that the housing element can be paid in this situation.

TELLIT01

If the daughter's only income is benefits payments, how would they pay Council Tax, maintain the property etc if is was made over to them?