renting to family

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  • renting to family

    a friend of mine wants to rent a house to his daughter who is a single mother
    on benefit and the council seems be to put every obsticle in the way.
    everything is above board she is paying a descent rent , and as tennacy agreement, and all this as been shown.
    anyone ever had a similar problem?
    thanks for any help.

  • #2
    As far as I am aware, the council will not pay any housing benefit in this situation. I am sure I read somewhere that a parent can not let a property to a child and then that child claims HB.


    • #3
      According to Shelter, if you are renting a home from a family member and they live in the same house, you won't be able to get Housing Benefit, but if the property is separate and meets certain conditions, it should be possible. Their site tells you how to appeal a HB decision.

      "If you live in a property owned by a family member and pay them rent, you may be entitled to Housing Benefit. However, there are a couple of things the Housing Benefit department will want to check. Firstly, they will want to be satisfied that you're paying rent on a commercial basis. In other words, they'll want to know that it's a proper tenancy, not just an informal arrangement between family.

      Secondly, they may want to check that the arrangement has not been set up in order to take advantage of the Housing Benefit system - this is called a 'contrived tenancy'. For example, if your landlord only asks you to pay rent when you are not working (and so eligible for Housing Benefit), but not when you are working (and earning too much to claim Housing Benefit), this would be a contrived tenancy."


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