Housing Benefit - Landlord is family member

[Fred]

I was recently told about a councillor who owns a house and his daughter is
living in it.

The rent is paid via the Housing Benefit.

The house is registered in the councillors wife's maiden name.

Is this legal as it certainly seems wrong to me?

thanks for your help.

 

[Martin Davies]

I was recently told about a councillor who owns a house and his daughter is
living in it.

The rent is paid via the Housing Benefit.

The house is registered in the councillors wife's maiden name.

Is this legal as it certainly seems wrong to me?

thanks for your help.

So does the councillor own the house? Or his wife owns it?
Sorry, bit confused.

Martin <><

 

[Fred]

So does the councillor own the house? Or his wife owns it?

Sorry, bit confused.

I've just done a search through the land registry online website and the
wife is the registered owner.

Should it matter if the husband or wife owns the house because they are both
parents of their tenant?

 

[Robbie]

I've just done a search through the land registry online website and the
wife is the registered owner.

Should it matter if the husband or wife owns the house because they are both
parents of their tenant?

Perfectly legal.

Anyone can rent a property owned by a member of their family, so long as
the owner doesn't actually live in the property - so it's OK for
daughters to rent from dad, mother, step-mother or whatever. Of course,
it has to be a commercial tenancy. HB isn't payable if said dad etc is
actually resident.

Robbie

 

[Martin Davies]

I've just done a search through the land registry online website and the
wife is the registered owner.

Should it matter if the husband or wife owns the house because they are both
parents of their tenant?

Some people regard councillors as having to be held to a different set of
standards than others. For some reason.
To avoid even the image that he claims from the council in that way, could
stick house in wife's name. Or could have been a property wife had for ages.
No real problem for many people either way.
Presumably the daughter does qualify for HB?

Martin <><

 

[Fred]

Presumably the daughter does qualify for HB?

The daughter has never worked and is a single parent.


Does this mean that I can pack in my job, stop paying my mortgage and sell
my house to my parents. Put that money in a trust for my children and then
get HB to pay for my rent? That should save me a couple of hundrend pounds
a month on the mortgage and the money which my parents use to purchase my
house would in effect be earning them £70 per week interest (or whatever HB
pays) LOL!!

I always understood that HB would not be paid to a landlord who's tenant
was a family member and when applying for HB you have to declare an
interest. Surely it is open to all kinds of abuse?

 

[Martin Davies]

The daughter has never worked and is a single parent.


Does this mean that I can pack in my job, stop paying my mortgage and sell
my house to my parents. Put that money in a trust for my children and then
get HB to pay for my rent? That should save me a couple of hundrend pounds
a month on the mortgage and the money which my parents use to purchase my
house would in effect be earning them £70 per week interest (or whatever HB
pays) LOL!!

I always understood that HB would not be paid to a landlord who's tenant
was a family member and when applying for HB you have to declare an
interest. Surely it is open to all kinds of abuse?

Why is it more open to abuse than other ways?
If someone purchased a house to rent out, they have the costs of buying it
and maintaining it. Can't see the difference between daughter living in
house purchased by mother or house purchased by me - either way, there would
be rent payable.

Martin <><

 

[Fred]

Why is it more open to abuse than other ways?
If someone purchased a house to rent out, they have the costs of buying it
and maintaining it. Can't see the difference between daughter living in
house purchased by mother or house purchased by me - either way, there
would
be rent payable.

Martin <><

I recall being shown clauses from a local HB officer which expressly
forbade receiving "HB" rent from close relatives. Have these changed?

At the time, I was considering buying shares in the local housing
association to cause my ex some grief!

 

[Zoe Brown]

I recall being shown clauses from a local HB officer which expressly

forbade receiving "HB" rent from close relatives. Have these changed?

HB is only payable if it is a real tenancy. The council ask you to declare
if you are related and if so will require proof of tenancy and will probably
check a bit more.

 

[anthonyberet]

The daughter has never worked and is a single parent.


Does this mean that I can pack in my job, stop paying my mortgage and sell
my house to my parents. Put that money in a trust for my children and then
get HB to pay for my rent? That should save me a couple of hundrend pounds
a month on the mortgage and the money which my parents use to purchase my
house would in effect be earning them £70 per week interest (or whatever HB
pays) LOL!!

No, that particular scam has been thought of and excluded.

I always understood that HB would not be paid to a landlord who's tenant
was a family member and when applying for HB you have to declare an
interest. Surely it is open to all kinds of abuse?

Not really - why is it more abusive than two sets of parents letting
properties to each-other's kids? - or indeed, to complete strangers....

 

[anthonyberet]

I recall being shown clauses from a local HB officer which expressly
forbade receiving "HB" rent from close relatives. Have these changed?

At the time, I was considering buying shares in the local housing
association to cause my ex some grief!

No, they haven't changed - there are quite a few regs covering these
issues, but you were probably shown the ones pertaining to people who
live with their landlords.
Incidentally - it is quite legal for neighbours to take in each-others
kids as lodgers, as long as the reason for doing so is not to create an
entitlement to HB.