Can a landlord rent to a close relative?

[Philosopherstone]

Can they do this with a normal buy to let mortgage or do they need a specific one?

Yes a LL can rent to a relative.

You can’t rent to a relative on a buy to let mortgage

Yes, but there may be issues if the tenant is in receipt of housing benefits.

Buy to let mortgages will often explicitly exclude doing so, you would need to check.

I asking because we have been in this property (new build) for less than a year and the landlord has told us that they won't be renewing the contract but also that if we find somewhere earlier then they will let us go, because they want their son to move in instead.

I feel like they used us to settle the house in (snags etc) and to cover for the first year to make it look like non family live here for perhaps check purposes I don't know.

So you don’t think they should have their son living in their property?

I think it's fine as long as son is not in receipt of housing benefit. A normal BTL mortgage would be ok for their son to go in as a tenant I think.

Surely they're free to let to whomever they like? It's not really any of your business if the mortgage allows it or not?

So frustrating I'm so sorry!

I had a bit to let mortgage contract drafted and it only said that I couldn't live in it, nothing about relations not living in it

Might be different if they only have consent to let the property, but if they bought it as a new build themselves I'd be surprised if their lender would've allowed that in the first place

Maybe they did. But it doesn’t help you anyway, and without seeing the terms of their mortgage you can’t know if it’s ‘not allowed’. Some will allow it, some won’t.

Just concentrate on finding another rental.

Maybe they don’t have a mortgage?

I know I'm just upset why did he rent to a family with such young children knowing they were going to do what they are doing.

Advice from shelter:
You must rent on a commercial basis to get housing related benefits.
Your agreement can be legally binding even if you pay less than market rent.
Your family member:

• does not have to make a profit from renting to you
• should take on the rights and responsibilities of a landlord

Benefit decision makers consider whether your relative would enforce the agreement. For example, by serving notice to end the tenancy if you do not pay rent. They also check that the tenancy has not been set up just so you can claim benefits

You don’t know that they always intended this. It could be a recent situation with their son.

But it is upsetting, I’m sorry. No one wants that upheaval and it’s the worst part of renting. I hope you get a more reliable LL next time. You can ask the letting agents a bit about whether the LL does it professionally for a living (several properties) or if it’s their only house.

I can see how it's stressful and upsetting for you but perhaps circumstances have changed and their son now needs somewhere to live- seen as though new builds are under guarantees not really sure of the benefit of them having someone iron out the snags? Rather than torture yourself thinking about it good luck in the house hunt, hope you find somewhere soon; seems to have chilled out a bit around here thankfully.