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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

to think my friend is a benefits cheat

146 replies

ljwales · 04/04/2015 23:02

She has several buy to let properties that are all occupied by people in receipt of housing benefit.she regularly monitors the market and if the housing benefit will ever pay any more money for the properties she puts up the rent as she knows the tax payers will pay the increase. She's done this several times over the last few years, even though her costs have fallen massively with the interest rate drops!

OP posts:
lougle · 04/04/2015 23:03

Not a benefits cheat. Just someone in business exploiting the market.

lougle · 04/04/2015 23:05

Remember also, that to get HB for a private let, the rental value must be in the bottom 30% of rental values for a property with that number of bedrooms in that broad market rental area, so she's not charging an exorbitant price to start with.

moodscope · 04/04/2015 23:06

Doesn't sound like she is "cheating", There is a set rate that she will be able to claim or rather her tenants can claim.

2015 LHA rates can not be higher than the following maximum weekly rents:

£260.64 for one room, shared accommodation
£260.64 for one bedroom exclusive use
£302.33 for 2 bedroom accommodation
£354.46 for 3 bedroom accommodation
£417.02 for 4 bedroom accommodation

MissWimpyDimple · 04/04/2015 23:07

local HB rates are usually on the low side (supposedly they are an average of the area), so she is obviously charging the going rate!
To be honest she's doing people a favour by taking HB at all. Most don't.

Original poster
ljwales · 04/04/2015 23:08

I think she is charging high rates, they are all studio flats in deprived areas

OP posts:
FarFromAnyRoad · 04/04/2015 23:09

How can she be a 'benefits cgeat' if she's not on benefits? Anyway what she's doing is not at all illegal. Immoral maybe, maybe not. It's between her and her conscience isn't it.

CadieAgain · 04/04/2015 23:09

She is profiteering from taxpayers.

sooperdooper · 04/04/2015 23:11

She's simply taking advantage of whats available, not a benefit cheat whatsoever

You don't sound much of a friend, glad you're not someone I'd class as one

FarFromAnyRoad · 04/04/2015 23:14

Profiteering is not illegal. I always consider these things by asking what I would do - and in this case as long as I was operating within the law I'd do the same. I expect her costs are quite high too

textfan · 04/04/2015 23:18

This reply has been deleted

Message withdrawn at poster's request.

SirChenjin · 04/04/2015 23:22

She's not a cheat - she's just taking full advantage of this utterly bonkers benefit system we have in the UK.

IfYouWereARiverIdLearnToFloat · 04/04/2015 23:24

Rents in general have gone up over the last few years... regardless of who she rents to she's entitled to increase the rent. I don't understand why you think this makes her a benefits cheat? She might be making more because of interest rates dropping or she might not but that's nobody else's business but hers. She's also likely to have lost money when house prices plummeted and she'll be paying more in interest on a buy to let mortgage than you or I. Can't you just be happy for her?

RJnomore · 04/04/2015 23:30

She's certainly working the system to h advantage. It may not be illegal but it sure is immoral. I can totally see why she does it but it's so wrong! I'm surprised by the previous responses on this thread tbh.

LeahLeah · 04/04/2015 23:32

I wouldn't call her a benefits cheat, just a business woman x

Theoretician · 04/04/2015 23:38

just taking full advantage of this utterly bonkers benefit system we have in the UK.

She's not taking advantage of the benefits system at all. Her tenants are getting benefits to pay their rent. She would be equally happy getting rent from someone paying out of their salary.

beautyfades · 04/04/2015 23:39

Tbh not a cheat just making money were she can. I know loads of ppl like this wot can u do? It's life

IFinishedTheBiscuits · 04/04/2015 23:44

One on hand I don't really agree with raising rent to the maximum amount of LHA if the flat would be worth less privately (and I am a landlord). On the other hand it's likely that LHA influences the 'market rate', in some cases causing rents to fall in an area as landlords drop prices to keep tenants (and I think this was one of the reasons for setting LHA) and in a few cases, increasing market rate.

BathtimeFunkster · 04/04/2015 23:45

"Just someone in business exploiting the market."

Nope, it's not a "market" that is being exploited here, it's public money.

Your friend is absolutely a scrounging benefit cheat of the worst kind.

But apparently this kind of cheating is fine by the government.

Not like those evil disabled people with all their extra bedrooms. Hmm

IFinishedTheBiscuits · 04/04/2015 23:46

But the issue is if you're getting more out of people on housing benefit than you would from people paying out of a salary.

BathtimeFunkster · 04/04/2015 23:49

The issue is that "private" landlords are minting it at the expense of the tax payer.

We are paying their but to let mortgages at enormous cost and they end up owning the properties.

Public money should be spent on replenishing the public housing stock, not lining the pockets of people lucky enough to own property.

Viviennemary · 04/04/2015 23:56

She is profiteering from the current HB rules. Greedy perhaps. A benefits cheat no.

IFinishedTheBiscuits · 04/04/2015 23:56

I have also heard of people doing this - and the tenant on housing benefit is a relative... how on earth that's legal I don't know.

FlumptyDumpty · 05/04/2015 00:03

It's not illegal, though dubious morally, IMO.

This, folks, is the fall-out from the mass sell-off of council housing. A much higher housing bill for the taxpayer, with public funds being siphoned off into private hands.

Original poster
ljwales · 05/04/2015 07:00

Very surprised by the replies here! The amount of anger poured at bankers and tax avoiding companies doing perfectly legal stuff is through the roof. But when its a relatable person then it's all ok

OP posts:
Icimoi · 05/04/2015 07:06

I think it rather depends on how her rents compare to the private market - i.e. is she charging more than she would get from non-benefit payers purely because she knows she won't get any argument from tenants on housing benefit. If so then yes, she is a cheat.