rent money

[bethamy]

I have purchased a house for a close realtive to live as they were too frightned the council would home them in a bad area. Will the council still pay housing benefit?

[themas]

In principle you should be alright, unless there are terms in the tenancy agreement which lead the Council to think it is non-commercial. Make sure you have a standard written agreement and that the rent is a realistic one for the area and type of house.

If the house is considered to be too large (i.e. anything more than 1 bed property if the tenant is living alone), or if the rent is considered too high for the area, then the amount of benefit paid will be cut back.

The tenant must, of course, still be entitled to the benefit (low income and savings etc.)

[yummymummy]

Close relative claims are always difficult and usually involve an interview with both parties. They have to show that you have a 'real' tenancy agreement that would involve eviction if the rent wasn't paid or any other conditions of the agreement were breached. If it's all drawn up properly then it is more likely to be accepted, but not a definite thing unfortunately.