Housing Benefit Claim declined for sister tenant?
Bit of a complicated one this. My sister relocated to Edinburgh after her marriage broke down and has been renting a flat from myself via the letting agent I have used for years.
As a single parent with a young child of school age her only income is whatever her partner decides to give her (he works abroad). She owns a small flat out right which is mortgage free in which our dad a retired pensioner has lived rent free for the last 9 years.
She declared all this on the application, but has since had the claim refused and their reason is that the property she owns is worth over £16k , is this correct as its the first ever housing benefit claim she has submitted.
Many thanks
Craig
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Can I stop an Airbnb guest entering the property?
Member Since September 2015 - Comments: 239 - Articles: 1
12:26 AM, 27th November 2017, About 8 years ago
Reply to the comment left by Robert Mellors at 26/11/2017 – 22:48
It looks as though provided the father’s tenancy is properly set up and evidence of regular payment can be proven then Kate’s idea could work. It’s reasonable for the daughter to charge the father rent if she has no other means of income and it is preventing her getting housing benefit.
Member Since October 2013 - Comments: 14
5:13 AM, 27th November 2017, About 8 years ago
Reply to the comment left by Kate Mellor at 26/11/2017 – 12:10
I think thats an option she would need to look at
Member Since July 2017 - Comments: 51
5:40 PM, 27th November 2017, About 8 years ago
Reply to the comment left by Cbev at 27/11/2017 – 05:13Alison is
right depending all is in place. Also councils have different rules. Is her father infirm and over 60 yrs another angle. I know people who let to family and worked. I would say ask money matters or citizen advice, even some DWP will help but DWP sometimes justsay no to it as soon as you say second property. Always appeal. They will look at who is the landlord not the amount. The rent will become declared income and effect benefits. And of course asset\capital.
Member Since October 2013 - Comments: 14
6:02 PM, 27th November 2017, About 8 years ago
Reply to the comment left by loretta wight at 27/11/2017 – 17:40
My father is 70 and is in receipt of state pension (but no pension top up credits) and is disabled he needs a zimmer frame to walk about on . In the 9 years he has stayed at my sisters flat she has never asked a penny from him. I will urge her to appeal in the strongest terms.
Member Since October 2013 - Comments: 1308 - Articles: 10
8:06 PM, 27th November 2017, About 8 years ago
Reply to the comment left by Cbev at 27/11/2017 – 18:02
Your sister has been letting to your/her father for no rent for 9 years. If she now starts charging him rent in order to obtain Housing Benefit, this is likely to be considered as a contrived tenancy, as the liability (to pay rent) has been created to take advantage of the Housing Benefit scheme.
Member Since November 2015 - Comments: 584
2:25 PM, 1st December 2017, About 8 years ago
Reply to the comment left by Robert Mellors at 27/11/2017 – 20:06
That is one way of looking at it. However, I would argue that as the property owner’s circumstances have changed and she is now not in a position to support her father she needs to charge rent for the property. His subsequent claim for housing benefit is incidental. As he is actually unequivocally using the property as his main residence and the property is owned by someone else he is receiving the benefit for which he would be claiming and she is more than entitled to receive rent for that benefit. She has been refused housing benefit herself as the council expects her to use her asset to support herself. They can’t then find her at fault for doing so.
Member Since October 2013 - Comments: 1308 - Articles: 10
3:05 PM, 1st December 2017, About 8 years ago
Reply to the comment left by Kate Mellor at 01/12/2017 – 14:25
Hi Kate
I agree entirely with that logic, (and the argument is worded well), but I do know that HB Depts have a very wide discretion as to what they consider to be contrived or not, so it would be a bit of a gamble. However, as there is nothing to lose, it may be worth a try, (now = no rent; if HB say “contrived” it is still no rent).
Member Since November 2015 - Comments: 584
3:40 PM, 1st December 2017, About 8 years ago
Reply to the comment left by Robert Mellors at 01/12/2017 – 15:05
Thanks Robert 🙂