Housing benefit query

waynesworld1 · 17 June 2006 at 4:33PM

Ive got a query regarding Housing Benefit,i am in the process of buying a house that i will not be living in full time due to my job and i want to let my mother move in who is currently in a council house recieving housing benefit,the query is can my mother move in and still recieve housing benefit and pay this to me as her landlord, i have heard that housing benefit cannot be paid to family members is this true ?

Ted_Hutchinson · 17 June 2006 at 5:38PM

Liability to make payments and occupying the home From Housing Benefit Guidance manual3.31 A claimant who rents their accommodation from a close relative but does not reside with the relative, does not fall foul of this particular provision. However, consider other aspects of the arrangement, as it may seek to take advantage of the HB scheme, and fall foul of regulation 7(1)(l). But remember, it may be a perfectly normal tenancy created without any intention of abusing the HB scheme.

First if your mother moves from her current property to another the rent she is liable to pay will be limited to the amount she currently receives so they won't usually let people upgrade their accomodation willy nilly.

Secondly they may consider that your rental agreement is contrived to take advantage of the HB Scheme as they may think you aren't considering letting commercially to anyone, you are only renting to your mother and should she not pay her rent you'd not throw her out or take legal proceedings against her, you're just getting your mum to house sit and the HB to pay the mortgage while you aren't risking anything by renting the house to the general public.

It is possible to rent to a close relative. See the next paragraph from the above link. But you do have to be able to show a proper agreement and the same rules regarding size etc apply.

waynesworld1 · 17 June 2006 at 6:01PM

Will not be living in house for about 6yrs (am in army) and need to get on property ladder now and makes sense to get mother out of house she hates otherwise house will be empty and mother is a safe renter , but do take point on not kicking out if non payment but that is very unlikely.

Ted_Hutchinson · 17 June 2006 at 6:20PM

I'm sure there must be others in your position. I quite understand what you are proposing and why. It may help persuade the HB decision maker if you not only had a properly drawn up rental agreement but also had approached local letting agents and could demonstrate that the property had been available to other tenants before it was offered to your mother at a market rent.

It would be worth asking around to see how other service personelle have fared in this situation.

waynesworld1 · 17 June 2006 at 6:53PM

Does this property then be considered as a buy to let property ,which it is not and what would be the implications

lynzpower · 18 June 2006 at 10:23AM

I think it MAY count as a BTL property as you wont be living there and another adult will be and they will be paying you to do so.

Ask your lender

Chrysalis · 18 June 2006 at 2:26PM

Someone on CAG managed to get the benefit but they had to proce was a commercial arrangement ie. BTL mortgage etc.

Ted if someone moved from say a bedsit to a 1 bedroom flat so upgrading their home but still within guidelines would this be deemed as abuse and cap to old benefit? no relatives involved.

Housing benefit query

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free