How to handle housing benefit payments direct to landlord after ownership change?

I had a friend ask me for help, unfortunately, I am at a loss to advise. Can anyone offer some further guidance please?

An AST was signed by the tenant and the landlords Mr & Mrs Smith (also the joint owners). It started on 5 August 2024. A copy of the AST was sent to the council by the tenant and direct HB payments to the LL were established.

On 1 November 2024 the property ownership changed – the new owner and landlord was now Mr Brown. The tenant was sent a S3 & S48 combined letter giving all the necessary details (NRLA form was used).

Mr Smith then contacts the council to let them know the direct payments need to be sent to the new landlord and tells them the new bank details etc.

Council reply that the claim is now suspended and state that ” following a Land Registry check, it is confirmed that Mr & Mrs Smith are the legal owners XXX (address). In view of this, Mr Browns is not permitted to be the landlord of X address, for Housing Benefit purposes because he does not own the property. Mr Brown could act as your agent in respect of this property however in order for me to facilitate this,

I require the following: A new Tenancy Agreement is required and must include:
Tenancy Start Date – would be the date Mr Brown became your agent
Landlord – Mr & Mrs Smith and your current residential address
Landlord Agent – Mr Brown and his current residential address
and Evidence of Mr Browns Identity and evidence of his Residential Address

The reply to the Council made it clear that the property ownership changed hands on X date. A copy of the TR1 form was attached showing this was completed, witnessed and stamped by deed at a meeting held at a solicitors office, with all parties in attendance AFTER which all persons ID was checked in full by a solicitor.

The reply also made it clear that the Land Registry (LR) had advised that the TR1 form had been received by the solicitor but it would take until March 2026 for a new Title deed to be issued because of the Covid backlog. They also confirmed that the fact that the deed has been executed and the legal document has been received by the LR is legal confirmation that ownership changed on that date – it is not implicit to wait for a certificate to be produced to legally confirm this.

The council were also made aware that a change in property owner/Landlord or agent does not warrant the requirement for a new AST to be required. Under housing legislation, the owner/Landlord/agent can be the same or different persons all with different responsibilities and legal roles/duties. Therefore the tenants AST remains unchanged and there is no need for a new one to be issued.

The council have now replied –
For Housing Benefit purposes especially in relation to change of landlord and financial details, I require the following: A new Tenancy Agreement is required and must include:
Tenancy Start Date – 1.11.2024 as This is the date Mr Brown became owner of the property
Landlord – Mr Brown and his current residential address
Evidence of Mr Browns Identity
Evidence of Mr Browns Residential Address

Any ideas anyone how to get this finally resolved? The claim remains suspended until this is sorted out which means no HB coming in.

Thanks,

Reluctant landlord

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