Housing benefit and parent landlord

JuzaMum

I bought a flat to let out and my son needed a flat at the same time so it made sense for him to be my tenant. Everything has been done properly, deposit protected, contract, EPC etc. After over two years there he has lost his job. If he claims benefits, could he claim housing benefit or would this be considered a contrived tenancy?
Tia

Ref44

Are you charging him a commercial rent?

JuzaMum

Ref44 said:

Are you charging him a commercial rent?

Pretty much, but at the lower end of the range for similar properties

Bookworm105

JuzaMum said:

Ref44 said:

Are you charging him a commercial rent?

Pretty much, but at the lower end of the range for similar properties

then potentially he has the basis of a housing benefit claim as you have a commercial rent for the amount you were (and will carry on unchanged) charging him. Whether he will be expected to make up a shortfall between benefit and rent will be clear when they make the award 

Shelter Legal England - Housing benefit claimants who are treated as not liable to pay rent - Shelter England

propertyrental

JuzaMum said:

Ref44 said:

Are you charging him a commercial rent?

Pretty much, ....

If the authorities agree with you then I believe he'll get HB.

If they disagree, he won't.

FreeBear

propertyrental said:

JuzaMum said:

Ref44 said:

Are you charging him a commercial rent?

Pretty much, ....

If the authorities agree with you then I believe he'll get HB.

If they disagree, he won't.

But you (or rather, your son) can put in for a "mandatory reconsideration". There is a long list of Decision Maker's rulings that you can consult for prior rulings to support the reconsideration. A (very, very) long read, but most of it is here -> https://www.gov.uk/government/collections/decision-makers-guide-staff-guide

_Penny_Dreadful

As your son is already living in the property and has been paying rent then it doesn’t sound like a contrived tenancy. Your son should be able to claim universal credit to help cover his housing costs until he finds work again. 

theartfullodger

There's a common view that any landlord should not rent to friends or family.  Quickest way to ruin relationships (I'm a landlord..)

You'll obviously appreciate why the authorities are suspicious of such arrangements.

Is rent paid by bank transfer?  If cash, no receipt.... oh dear....

Does any mortgage or landlord insurance understand that you are renting to son?  Usually not permitted.

Did he have lodgers or partner with him?

DE_612183

theartfullodger said:

There's a common view that any landlord should not rent to friends or family.  Quickest way to ruin relationships (I'm a landlord..)

You'll obviously appreciate why the authorities are suspicious of such arrangements.

Is rent paid by bank transfer?  If cash, no receipt.... oh dear....

Does any mortgage or landlord insurance understand that you are renting to son?  Usually not permitted.

They said they bought it to rent out - the son being the tenant is just an easy option.

JuzaMum

theartfullodger said:

There's a common view that any landlord should not rent to friends or family.  Quickest way to ruin relationships (I'm a landlord..)

You'll obviously appreciate why the authorities are suspicious of such arrangements.

Is rent paid by bank transfer?  If cash, no receipt.... oh dear....

Does any mortgage or landlord insurance understand that you are renting to son?  Usually not permitted.

Did he have lodgers or partner with him?

Bank transfer for rent, no mortgage and landlord insurance is all correct. I even file a tax return

RAS

Not been around this issue for a few years but the basics were

Market rent?
Behaving like a LL
Would you evict if failed to pay rent?
Established tenancy prior to benefit claim.

Although there were a few forumites who had replaced tenants with family members and the tenant succeeded in claiming benefit support. So completely new arrangements weren't excluded if they ticked the other boxes.