Housing benefit question

[Guest trip secrets]

Hi, can anyone tell me if I am still able to claim housing benefit if I am renting a flat from a relative?

[Guest Old_andrew2018]

yes as long as you have a proper rental agreement,

[Emma1973]

Maybe, a 'contrived tenancy' is more than jut having a proper tenancy agreement! The Local Authority may look at whether the flat was rented out before, or was bought purely for you to use, whether a commercial rent is charged or just a token one. And what would happen if you had rent arrears, would the landlord evict you?

 

All you are trying to prove is that the tenancy is on a proper commercial basis and not designed to take advantage of the HB system.

[RosaofEdge]

If you are planning to rent accommodation within the home occupied by a close relative you cannot claim HB.

 

It it is a seperate property and you have a tenancy agreement you may find that they refuse your application if either it is not a commercial letting or if they find it is a "contrived tenancy" - one set up to take advantage of the HB scheme.

 

Shelter has a useful guidance note here

Shelter England - Housing benefit if renting from family

 

In my experience people who rent from family members very often find that it takes the council a lot longer than usual to reach a decision and they may have to appeal to succeed on their claim. It often seems like they applya presumption that you are not entitled to HB and leave you to find evidence to dislodge that presumption!

 

The kind of evidence which can help is if a family member who has an established buy to let with a stranger-tenant then rents to you at a similar rent when a tenant moves out and you need a place. The council may be quite nosey about the business affairs of your relative in order to get the evidence to support the proposition that the tenancy is commercial and not contrived, and it is helpful if the Landlord is willing to provide useful evidence to the council.