Granny Flat

[bil8999]

Hi

Can in-laws rent our granny flat and claim housing benefit, if not why not?

Thanks in advance

[Melboy]

My next door neighbour did. It had it's own council tax banding as well.

Housing benefit is unlikely as DWP do not like the family set-up when it comes to paying out housing benefit. But you never know they may well give you housing benefit.

All Councils are different so you really need to ask the question to your local authority for the definitve answer to your questions.

[Grampa]

In theory yes but councils can be funny about renting to family members but it is possible and I have 2 on my books.

Is the granny flat attached to your property?

Does it have its own address, utilities, rented out before and will you use a agent, (to start with at least)? If yes that is better.

You have to convince the council it is not a "contrived" tenancy which means setting the rent at the market value and making it clear that any tenants will be evicted if the rent isn't paid.

Do you know if your in-laws are even entitled to HB and how much? What they say and what they will get are two different things.

If you do go ahead treat it as a normal tenancy with proper contracts, inventories etc as many many people end out falling out with friends and relations when they rent to them that is why it would be good to use a agent who can be the bad guy when issues arise.

The housing benefit rules and guidance have its own section on granting HB/LHA to family landlords and shelter used to have some guidance as well on its website.

Let us know how you get on.

[bil8999]

Hi

Yes it is attached to our property but has separate access.

They have always paid there own rent, but now there savings have gone they may need to apply for housing benefit.

Why should they be treated any different to someone living in unrelated private rented acc.

We had to invest money in building the accommodation and like any other investment need a return.

Is this unreasonable.

Thanks

[Grampa]

The council have to be sure it isn't a dodgy arrangement when the rent is over inflated and or not a proper tenancy to defraud the council.

Speak to the housing dept of the council

[bil8999]

Hi

The rent is not over inflated, and is all above board through my property business with contract etc.

Had a chat with housing benefit and as usual they were negative, saying that because we are related then benefit would not be paid, how do they expect us to maintain the property if not in receipt of an income.

I personally can't see the difference between being related and unrelated as long as it is all above board.

Thanks

[Richlist]

The council have to be sure that there is no fraudulent claim. As you are related, the opportunity / risk is greater. As a tax payer I want my local council to be vigilent and to do everything necessary within their powers to reduce unlawfull claims. So, as far as I'm concerned they are doing the right thing.

You can let your property normally in the same way as the rest of us.

[Grampa]

The council cannot just say they are not going to pay housing benefit because you are related. The housing benefit regulation have a provision for this and they have to abide by the rules. You also have the option of appeal. Write to them requesting a statement of reasons why they wont allow the claim.

Also as previously mentioned look of the shelter website as they have or had a article about it.

also try http://www.landlordzone.co.uk/forums/forumdisplay.php?18-Housing-Benefit-Questions-(HB-LHA-DSS)