Housing Benefit and Rent Increase worries

lildannys95

Hello, 

My dad has lived in a Parkhome for the past 13 years, and pays rent of £490 per month via Housing Benefit. This has been the rate since he moved in, but our Landlord is looking at increasing the rent, he said this through general conversation and I am not sure of the exact amount or when he wants to increase it by. I am aware that what we pay is a very low amount for the area which we live and after 13 years I cannot blame the Landlord for wanting to increase the rent, especially in the times we live in, but it has got me very worried.

When the Landlord officially notifies of the increase in rent and new amount, how will this work? Will it be a simple case of informing the council of the change with the new cost per month and they agree to increase the rent? Or will this result in a upheaval of his Housing Benefit as he is on a Legacy benefit and potentially move him to Universal Credit? I am worried as he is months away from retiring and receiving his state pension and I don't want him to go through a major change to his benefits or have a serious cut to his finances from it moving to Universal Credit, I think he is better off on his current Legacy benefits, as once he is pension age his benefits "lock" then he wont be moved off them?

What would be a reasonable increase that I should expect from the Landlord too? Are they allowed to charge what they wish? I know that LHA rates do not apply in this case, as this is a Parkhome, its classed as a "caravan" for Housing benefit purposes but I am trying to use it as a rough guide, but if the rent increase is at or under what it would be at the LHA rate for 2 bedroom homes in my area (About £180 per week, £720 Per Month) then then would the council be more than likely happy to pay under that cost without issues? As that's what other properties would be at locally.

Can also in turn the council deny any increase request as LHA does not apply? also, if its a big increase from what we currently pay, say if it went up a few hundred per month then can the council refuse to pay this too? Then what happens if we have an excess we cannot pay?

I hope this makes sense and I really appreciate any advice given. 

Thank You.

Danny.

jonnydeppiwish!

Hi Danny

Welcome to the forum! I don’t know much about the benefit systems but you’ll probably get some good responses over on the Benefits and Tax Credits forum.

MovingForwards

I'll try and cover as many of your queries:

You've indicated it's your dad's rental, but hinting you also live there, helps if you fully clarify the situation of the living arrangements, who is on the tenancy, what benefits are being claimed by both of you, or whether you're working, as this information could alter the below comments. You are better off posting on the benefits board.

When the Landlord officially notifies of the increase in rent and new amount, how will this work?

the LL will notify your dad as per the rental agreement 

Will it be a simple case of informing the council of the change with the new cost per month and they agree to increase the rent?

yes, notify the council and they will pay as per their agreed rates for a 1 bed property as your dad is entitled. If the rent is more than that, your dad has to pay the balance.

Or will this result in a upheaval of his Housing Benefit as he is on a Legacy benefit and potentially move him to Universal Credit?

no as it's only a rent increase, not change of circumstances/ move out the existing area covered by the council, he will remain on legacy benefits. Be aware everyone on legacy benefits are being moved on to UC over the next couple of years.

 I think he is better off on his current Legacy benefits, as once he is pension age his benefits "lock" then he wont be moved off them?

when state pension age, he will receive state pension, maybe pension credit and maybe housing benefit, plus a few other smaller annual payments, depending on what other pensions he has and whether he's receiving DLA/PIP/AA 

What would be a reasonable increase that I should expect from the Landlord too? Are they allowed to charge what they wish? I know that LHA rates do not apply in this case, as this is a Parkhome, its classed as a "caravan" for Housing benefit purposes but I am trying to use it as a rough guide, but if the rent increase is at or under what it would be at the LHA rate for 2 bedroom homes in my area (About £180 per week, £720 Per Month) then then would the council be more than likely happy to pay under that cost without issues? As that's what other properties would be at locally.

read the tenancy as that sets out how much the rent can increase by. As before, the council have fixed amounts they pay.

Can also in turn the council deny any increase request as LHA does not apply? also, if its a big increase from what we currently pay, say if it went up a few hundred per month then can the council refuse to pay this too? Then what happens if we have an excess we cannot pay?

The council will pay upto an amount, as you've seen with the LHA rates, anything over that your dad needs to cover. It's possible to claim a temporary discretionary housing payment for the difference between rent amount and 'LHA' rate. If you can't afford the difference then you'll fall into rent arrears and potentially face eviction.