Renting property to parent on UC

[loves2plan]

Hi everyone, after some advice if possible please. I have recently moved in with my partner which means that the property that I own (and lived in alone) is now unoccupied. We were deciding whether to sell it or rent it when we realised that my mum (who works part time and claims UC) rents a house privately at the moment would be a great candidate to live there. I have looked into the legalities, got a proper formal tenancy agreement drawn, got the gas safety certification etc etc. I was just wondering, is there any reason why I wouldn't be allowed legally to rent the property to her, or why she would be denied the UC/HB for it?
Thanks in advance

My MIL has been renting her house from us for 24 years. No problems getting HB, they know that she’s renting from her son. Just bear in mind that HB will only pay for what she’s entitled. So our house should be getting £1500k a month but HB pay £400. That’s fine with us though as she looks after the place very nicely and we know she’s somewhere that makes her happy.

She may not be allowed to claim HB for a flat that is owned by you. They have cracked down on HB paid to people renting from close family members.

She may not be allowed to claim HB for a flat that is owned by you. They have cracked down on HB paid to people renting from close family members
Sorry but this is not true

Here is Shelter's page on renting to family members:

https://england.shelter.org.uk/housingadvice/benefits/claimingbenefitsifyourentfrom_family

As @StarCat2020 said, it doesn't affect benefits if you're renting on a commercial basis which it seems you are. Sounds like a great solution

@Viviennemary

She may not be allowed to claim HB for a flat that is owned by you. They have cracked down on HB paid to people renting from close family members.

This used to be the case, but I think that they now take the view that they would be paying HB anyway, so it does not matter.

You should ring the council where the house is and ask them what their rules are. They are usually happy to advise.

Just bear in mind as a single person the max HB she could claim is the one bed rate where you are. The rates are googleable though so she can assess if she can afford the difference.

Do you have a mortgage over the property? If so the terms may prevent you renting to her. Make sure you check that too.

Thanks all, that's helpful. Aware that her HB won't cover the whole cost to rent but that's fine cos she puts her wages towards her rent at present.

@SeasonFinale checked with my mortgage provider re permission to let and all fine ☺️