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Letting to close relatives


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Hi Patrice,

You can rent a property to a close relative claiming housing benefit ..... BUT ...... the Housing Benefit Office will have lots of questions to ask and a few forms for you to complete to ensure that the arrangement (between you and the close relative) has not been architected to defraud the Benefit system.

You need to be running the tenancy in a commercial way. This means the relative needs to be paying "market priced rent" and, if the relative defaults on any aspect of the tenancy or the rent then you have to be prepared to evict them.

You need to also demonstrate that the property was purchased as a genuine investment. Were you renting the property to someone else (before the relative moved in), have you owned the property for some time.

In summary, it is possible to rent a property to a close relative on HB - but you do need to convince the Council that it is a genuine arrangement and not a scam !


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