UC living in a flat my parents own

ChristinaGray

My son with a disability is thinking of moving into a flat we own.  Will he get any help to pay for any costs like factors charges from uc?

born_again

Are you going to be charging the going rate of rent?

marcia_

ChristinaGray said:

My son with a disability is thinking of moving into a flat we own.  Will he get any help to pay for any costs like factors charges from uc?

  Maybe not depending in if the DWP see it as a genuine tenancy. 

 Will you charge rent and carry out all your responsibilities as a landlord, including eviction if rent is not paid for example? 

beanielou

I am not 100% sure but I do think that UC will not allow payment to a family member. 

KxMx

You will only get Housing Element via UC if they are satisfied it's not a Contrived Tenancy. 

peteuk

Have you previously rented the flat? Is your son paying the same amount as previous renters?

pmlindyloo

This is from the Advice For Decision Makers about such a scenario.

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 1
A claimant lives in a property owned by their parents, and the tenancy agreement states the claimant is the tenant. The property was bought solely for the use of the claimant and their parents charge a rent of £500. That figure is based on the average monthly charges for all bills, all of which remain in the parent’s name. Although the claimant is required to pay his rent in full, there have been several occasions when the claimant has not done so and the evidence suggests that no legal proceedings have been or will be taken against him. No deposit was paid. This evidence suggests this is not a commercial liability.

Example 2
After the claimant left the family home, which had previously been adapted for the claimant, a wheelchair user, the claimants’ parents moved to a smaller property and rented out the family home through an agency. Sometime later it became clear that the claimant’s accommodation, for which he received a HCE, was not ideally suited to the needs of a wheelchair user. When the tenant in the family home left, the claimant moved back, under the same terms as the previous tenant. Although they were not required to pay a deposit, the terms of the tenancy agreement were the same as for the previous tenant. The arrangement continued to be managed by the agency. The evidence suggests this is a commercial liability.
 
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 profit 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.

poppy12345

What would happen if he didn't pay his rent, would you evict him? This is something they would also look at. 

kaMelo

Other things considered,

Is this a property you've let out before.

Are you compliant with all landlord obligations such as the tenant deposit scheme and all certificates for the property