Renting house to a relative and housing benefit
Discussion
I currently live alone in a 4 bed house, owned, no mortgage.
My sister, her female partner and their 4 kids live in a housing association property in the next county. They are registered carers for two of my sister's kids who have disabilities. A third child is likely to be registered with the same disability in a couple of years. They receive housing benefit because of this, and are not required to sign on to receive other benefits.
Both of them want to work in the future. Once the youngest child is at school, that will happen.
They want to move back here to be closer to our family, and a better quality of life for the kids.
They have tried to get a housing association house swap, without success. There is a shortage of suitable properties in this area.
I'm pretty sure that it would be OK for them to rent my house and claim housing benefit. I think the only grey area is where a parent rents to a child?
Howerever, is it possible for me to rent part of the house to them and still live here, with them claiming housing benefit?
If it is possible, how would a suitable rent (for benefits) be calculated? The market rent for my house would be about £1100 pcm. The benefit cap for a 4 bed in this area is, I believe, £975.
My sister, her female partner and their 4 kids live in a housing association property in the next county. They are registered carers for two of my sister's kids who have disabilities. A third child is likely to be registered with the same disability in a couple of years. They receive housing benefit because of this, and are not required to sign on to receive other benefits.
Both of them want to work in the future. Once the youngest child is at school, that will happen.
They want to move back here to be closer to our family, and a better quality of life for the kids.
They have tried to get a housing association house swap, without success. There is a shortage of suitable properties in this area.
I'm pretty sure that it would be OK for them to rent my house and claim housing benefit. I think the only grey area is where a parent rents to a child?
Howerever, is it possible for me to rent part of the house to them and still live here, with them claiming housing benefit?
If it is possible, how would a suitable rent (for benefits) be calculated? The market rent for my house would be about £1100 pcm. The benefit cap for a 4 bed in this area is, I believe, £975.
Can't answer directly, but below are a few links I quickly found. 
Hope it helps.
http://england.shelter.org.uk/get_advice/housing_b...
http://www.housingandsupport.org.uk/renting-accomm...
Hope it helps.
http://england.shelter.org.uk/get_advice/housing_b...
http://www.housingandsupport.org.uk/renting-accomm...
Thanks for the links, looks like it would be OK as long as I don't live in the house.
Why don't I let them live here rent free? I'd be happy to do that short term. I did it for my brother's family when they first moved to this area - six months.
It's not really a goer in the long term. They currently have a nice 4 bed housing association house, not sure what would happen if they just gave that up. Would they be able to get a decent house in this area eventually?
Why don't I let them live here rent free? I'd be happy to do that short term. I did it for my brother's family when they first moved to this area - six months.
It's not really a goer in the long term. They currently have a nice 4 bed housing association house, not sure what would happen if they just gave that up. Would they be able to get a decent house in this area eventually?
My girlfriend rents her house out to her Mum. We had some work to persuade the council that it was legit, and it took a few months to sort out.
They sent us a couple of pages of detailed questions to answer - you'll need all the paperwork to prove that it is a proper tenancy and I think they were quizzing us why the bills had not yet been transferred into the tenant's name.
There were a lot of questions about what would happen if the tenant couldn't pay the rent - the correct answer of course is that you would evict and look for another tenant. Research the actual eviction process so it looks like you are a proper landlord who knows what they are talking about
They sent us a couple of pages of detailed questions to answer - you'll need all the paperwork to prove that it is a proper tenancy and I think they were quizzing us why the bills had not yet been transferred into the tenant's name.
There were a lot of questions about what would happen if the tenant couldn't pay the rent - the correct answer of course is that you would evict and look for another tenant. Research the actual eviction process so it looks like you are a proper landlord who knows what they are talking about
Get rich quick scheme this rent my houses to the state to house my sister and her female partner.
Your pretty sure the state will pay you to house them, quick check of shelter says no sister and brother no.
Not sure depending on age whether their entitled to a 4 bed, but if there kids are disabled they are normally excempt from the £26k cap
Also do the not have state funded adaptions to their current Property?
Simple answer no you can't legally and it sounds like a disaster should you do it, yes if yo did lie and commit fraud you could try to.
Your pretty sure the state will pay you to house them, quick check of shelter says no sister and brother no.
Not sure depending on age whether their entitled to a 4 bed, but if there kids are disabled they are normally excempt from the £26k cap
Also do the not have state funded adaptions to their current Property?
Simple answer no you can't legally and it sounds like a disaster should you do it, yes if yo did lie and commit fraud you could try to.
Edited by surveyor_101 on Saturday 2nd January 22:18
A few years ago when my mum lived in USA but worked in the Middle East, she owned a flat which I rented as a student and for which I was in receipt of housing benefit. It was a totally legitimate tenancy (couldn't afford for it not to be since the rental income was needed) The situation was complicated further by the fact that I held a Power of Attorney to act for my mum in relation to property matters in the UK.
Anyhow, it did take a while to jump through all the hoops to demonstrate to the Council that everything was proper and above board and we got there in the end although it did take a couple of appeals up the chain of command at the Council but that seemed to be more to do with the fact that anything out of the ordinary had to work its way up the system. I imagine the same will still be true.
Anyhow, it did take a while to jump through all the hoops to demonstrate to the Council that everything was proper and above board and we got there in the end although it did take a couple of appeals up the chain of command at the Council but that seemed to be more to do with the fact that anything out of the ordinary had to work its way up the system. I imagine the same will still be true.
renmure said:
A few years ago when my mum lived in USA but worked in the Middle East, she owned a flat which I rented as a student and for which I was in receipt of housing benefit. It was a totally legitimate tenancy (couldn't afford for it not to be since the rental income was needed) The situation was complicated further by the fact that I held a Power of Attorney to act for my mum in relation to property matters in the UK.
Anyhow, it did take a while to jump through all the hoops to demonstrate to the Council that everything was proper and above board and we got there in the end although it did take a couple of appeals up the chain of command at the Council but that seemed to be more to do with the fact that anything out of the ordinary had to work its way up the system. I imagine the same will still be true.
The op wants live in a room as well, cake and eat it?Anyhow, it did take a while to jump through all the hoops to demonstrate to the Council that everything was proper and above board and we got there in the end although it did take a couple of appeals up the chain of command at the Council but that seemed to be more to do with the fact that anything out of the ordinary had to work its way up the system. I imagine the same will still be true.
Shelter website says no. If the op decides to rent to them without staying in the house he will have to declare it and then see what they say,
surveyor_101 said:
renmure said:
A few years ago when my mum lived in USA but worked in the Middle East, she owned a flat which I rented as a student and for which I was in receipt of housing benefit. It was a totally legitimate tenancy (couldn't afford for it not to be since the rental income was needed) The situation was complicated further by the fact that I held a Power of Attorney to act for my mum in relation to property matters in the UK.
Anyhow, it did take a while to jump through all the hoops to demonstrate to the Council that everything was proper and above board and we got there in the end although it did take a couple of appeals up the chain of command at the Council but that seemed to be more to do with the fact that anything out of the ordinary had to work its way up the system. I imagine the same will still be true.
The op wants live in a room as well, cake and eat it?Anyhow, it did take a while to jump through all the hoops to demonstrate to the Council that everything was proper and above board and we got there in the end although it did take a couple of appeals up the chain of command at the Council but that seemed to be more to do with the fact that anything out of the ordinary had to work its way up the system. I imagine the same will still be true.
Shelter website says no. If the op decides to rent to them without staying in the house he will have to declare it and then see what they say,
They applied for housing benefit but were told that as my relative was related to them (even though they were not married) they would have to support them for nothing. The only answer was for them to move out into private rented accomodation.
rb5er said:
Surely this can't be legal. I imagine plenty are getting away with it but if caught the council will come back for ££££'s.
A relative has been doing it for years; renting a house to their mother-in-law who claims housing benefit.They did have to meet with the local council at least once to justify the housing benefit claim after it was originally rejected. I guess they managed to convince the council it was an arms length, legitimate lease agreement.
When I questioned the legitimacy of this type of claim on the Money Saving Expert site the answer was; if they didn't rent it to her as a benefit claiment they could rent it to another, so the UK still pays out a benefit regardless of who lives in the property.
uknick said:
A relative has been doing it for years; renting a house to their mother-in-law who claims housing benefit.
They did have to meet with the local council at least once to justify the housing benefit claim after it was originally rejected. I guess they managed to convince the council it was an arms length, legitimate lease agreement.
When I questioned the legitimacy of this type of claim on the Money Saving Expert site the answer was; if they didn't rent it to her as a benefit claiment they could rent it to another, so the UK still pays out a benefit regardless of who lives in the property.
Mother in law maybe viewed different as sister. Direct blood relative and I think the op will have to move out.They did have to meet with the local council at least once to justify the housing benefit claim after it was originally rejected. I guess they managed to convince the council it was an arms length, legitimate lease agreement.
When I questioned the legitimacy of this type of claim on the Money Saving Expert site the answer was; if they didn't rent it to her as a benefit claiment they could rent it to another, so the UK still pays out a benefit regardless of who lives in the property.
Stil a lot of questions like what are ages and are the entitled to a 4 bed. If disabled would adaptions not need to be made.
In my experience of social housing it's the ones who behave the worst who get treated the best. Lady on benefits Christmas programme 8 kids and one of those horrible status dogs thousands rent arrears but still gets 4 bed house upgrade.
Edited by surveyor_101 on Sunday 3rd January 14:46
surveyor 101 - you obviously have some issues. Please read again what I have written. I asked a question, it was answered with a link to the Shelter website.
What I had thought about suggesting to my sister as a solution to her relocation difficulty is not allowed, so we will not be doing it.
What I had thought about suggesting to my sister as a solution to her relocation difficulty is not allowed, so we will not be doing it.
surveyor_101 said:
In my experience of social housing it's the ones who behave the worst who get treated the best. Lady on benefits Christmas programme 8 kids and one of those horrible status dogs thousands rent arrears but still gets 4 bed house upgrade.
O/T and playing devil#s avocado..... should the Council/HA make the 8 kids homeless or live like rabbits in a hutch because their mum doesn't have the appropriate parenting skills?The problem of having a decent, caring society is that some people will always abuse it.
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