Housing query

SirSteven1986

Been really struggling as lots have with rent lately and how high it’s got, so my parents have seen a really cheap house to buy that there willing to rent to me at half price of current place to allow me to save bit of summat up, my question is if goes through would my universal credit claim be effected? Not that I get much as work quite a bit anyway?

poppy12345

SirSteven1986 said:

Been really struggling as lots have with rent lately and how high it’s got, so my parents have seen a really cheap house to buy that there willing to rent to me at half price of current place to allow me to save bit of summat up, my question is if goes through would my universal credit claim be effected? Not that I get much as work quite a bit anyway?

If you're asking if you're  able to claim for help with the rent in this situation if you're renting on a commercial basis. If you have an informal family arrangement then you will not be entitled. The big question here is, would your parents evict you if you didn't pay your rent?

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

Are your parents claiming any means tested benefits? buying a property they are not intending on living in will affect means tested benefits. 

SirSteven1986

No there not on benefits and considering they’d be giving me a good deal would hardly be in my favour to mess them around. I’d imagine they’d write me up a tenancy as they already have a few houses they rent out, My only issue is I get about 200£ top a month on my wage currently and current property is in better shape than the one they would buy so could easily end up in scruffy house that needs loads of work and being no better off as would lose the top up! 

poppy12345

You won't be able to claim for anymore housing element than what your rent actually is. If the rent is lower would there still be entitlement to UC? 

SirSteven1986

Possibly as don’t pay all of it atm, Would depend on the agreement I reach and earnings month to month I guess I work 2 jobs one 20 hours a week employed then odd bits n bats self employed wen I can so fluctuates, tbh if went through prob wouldn’t be worth hassle of keeping on the system 

luvchocolate

Are your parents applying for a mortgage?
If so would need a regulated buy to let..lenders do not like their properties to be let to family members 

Newcad

SirSteven1986 said:

......willing to rent to me at half price of current place...

......they already have a few houses they rent out,

Will it be cheaper because you are downsizing or moving to a cheaper area?, or because they will charge you a reduced rent below market rent?

The fact that they already rent out other properties would be in your favour as supporting that yours will be a 'real' tenancy.

If they are intending to charge you the full market rent for the property then that should be OK with the DWP.

HOWEVER if they charge you any less rent than they would charge other tenants for the same property the DWP would see your arrangement as being a family favour and not a 'real' tenancy at all. So would then refuse to pay any UC towards your rent.

In either case though as it will be a private rental then what benefits you can get towards rent is capped at the lower of the actual rent or the LHA rate you qualify for.
I don't see you getting any more money in benefits either way.
Any savings you do make by this proposed move will just be from how much you then have to pay for your rent above what benefits give you towards it.

pmlindyloo

Charging a lower rent is not necessarily a 'no no' as regards there being a commercial agreement.

Advice for Decision Makers

Liable to make payments
 F2081 There must be a liability to make payments which is on a commercial basis and a claimant must have the actual liability or be treated as having it. A liability to make payments imposes legally enforceable conditions on the parties to the agreement. If one party breaks the agreement, the other party has the right to go to court to seek redress. F2082 An agreement may not be on a commercial basis where it includes terms which are not legally enforceable or which the parties do not intend to be legally enforceable. Example A claimant does household chores for their landlord. The chores could be considered as payments in kind and the rental agreement a commercial one if when the tenant 1. does household chores for their landlord they pay a lower rent 2. does not do household chores they have to pay a higher rent.
F2083 Charging a low rent does not on its own make an agreement non-commercial. Many charities, voluntary bodies and some individuals, choose to let properties at below market rents or do not want to make a proft from letting, but their tenancies may still be commercial arrangements if that is what the parties to the agreement intend. F2084 The DM must decide whether the liability to make payments is on a commercial or non commercial basis as a question of fact based on all the evidence.

A decision maker would assess all the evidence as to whether the tenancy agreement was on a commercial basis.

Spoonie_Turtle

^ Presumably though if the parents charge normal rent rates on their other properties then it would be a family-specific decision to charge lower for the OP.

HillStreetBlues

If correctly set up and adhered too there is little scope for the DWP to refuse to allow it.

SirSteven1986

Newcad said:

SirSteven1986 said:

......willing to rent to me at half price of current place...

......they already have a few houses they rent out,

Will it be cheaper because you are downsizing or moving to a cheaper area?, or because they will charge you a reduced rent below market rent?

The fact that they already rent out other properties would be in your favour as supporting that yours will be a 'real' tenancy.

If they are intending to charge you the full market rent for the property then that should be OK with the DWP.

HOWEVER if they charge you any less rent than they would charge other tenants for the same property the DWP would see your arrangement as being a family favour and not a 'real' tenancy at all. So would then refuse to pay any UC towards your rent.

In either case though as it will be a private rental then what benefits you can get towards rent is capped at the lower of the actual rent or the LHA rate you qualify for.
I don't see you getting any more money in benefits either way.
Any savings you do make by this proposed move will just be from how much you then have to pay for your rent above what benefits give you towards it.

Tbh I think most there property are rented to family atm they just rent them at the flat rate housing pay which is usually quite a bit off average price in area,  unless u can get on with local housing which is near enough impossible these days (councils rather house non uk citizens which is another story) guess they see it as helping ppl out aswell as being able to have residents/houses can keep an eye on and know there not going to mess them around.