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Original poster

privately rented property and housing benefit - help please?

18 replies

FurKnickersAndNoCoat · 13/05/2011 13:55

can anyone help me with this please - will be moving out and into a privately rented house at the end of the month, it is a private landlord (i.e. not a council house/housing association) and it is going through an estate agent. the estate agents forms have an option to tick whether you are receiving housing benefit or not. i am going to tick NO even though I will be getting some help from HB.

I just dont want to lose the house on the basis that the landlords will not want to rent to someone who is on HB. have done this in the past and it was fine. however this time i have a guarantor as my credit rating is poor and the guarantor is worrying that it will somehow cause problems for him. i can't see how? i know that on the housing benefit claim forms they give you the option of saying that you do not want them to contact the landlord and i have in fact said to them face to face the last time i rented "please dont contact the landlord as i dont want them to know im in receipt of HB" and the council were fine with this so, what im asking in a roundabout talking rubbish way is, it surely isn't a problem to do this if the council themselves are happy to not contact landlords? Confused

OP posts:
Selks · 13/05/2011 14:05

The main practical problem that I can see is that it can take weeks for housing benefit to come through, so you might need to use savings to pay the landlord any deposit and rent until the HB comes through.

Selks · 13/05/2011 14:06

As to whether it's 'right' to lie to the Landlord, that's for your conscience to decide.

Original poster
FurKnickersAndNoCoat · 13/05/2011 14:06

sorry should have said - i have enough money and some borrowed to pay the first month and deposit up front.

OP posts:
GypsyMoth · 13/05/2011 14:07

some landlords have mortgages where they are not legally allowed to take tenants who claim housing benefit i believe!!

dont lie!!!!

Original poster
FurKnickersAndNoCoat · 13/05/2011 14:10

Sad dunno what to do now

OP posts:
GypsyMoth · 13/05/2011 14:11

ask letting agent if hb would cause a problem??

baabaapinksheep · 13/05/2011 14:14

Tillytulip is right, it is often a clause in a buy-to-let mortgage. You need to ask the letting agent first!

Original poster
FurKnickersAndNoCoat · 13/05/2011 14:17

i will ask them. thanks for replies.

OP posts:
fergoose · 13/05/2011 14:20

am sure the insurance is more expensive for HB claimants too.

scaryteacher · 13/05/2011 14:41

I am not allowed under the terms of my non buy to let mortgage, to rent my house out to HB claimants. I would be distinctly underwhelmed if I found a tenant had lied, especially if it impacted on my mortgage.

GypsyMoth · 13/05/2011 14:42

so there cant really be many landlords out there who can legally let houses to hb claimants then?

JenaiMarrHePlaysGuitar · 13/05/2011 14:47

Genuine question - how would the landlord or letting agent know?

Sqee · 13/05/2011 14:53

My sister private rents and receives HB. They way it works for her is the HB pay a percentage of her rent directly to the land lord so it may come up in his bank account where the money is comming from, but that is northern Ireland I don't know if that is how they would do it where you are. I doubt it would be wise to like hun more trouble than its worth.

baabaapinksheep · 13/05/2011 15:08

Jenai you often have to give the name and address of the landord/ letting agent on the HB form, although I don't think they usually contact them its not worth the risk IMO.

There aren't many landlords who are able to rent to HB claiments, but its always worth checking with the landlord the reason why they won't take HB.

enidroach · 13/05/2011 15:48

My friend who rents and gets Hb (but always has deposit and 2 months rent in cash from parents) never ever tells the agent or the LL as she would never get a decent rental. She does have to put the LL on the form but he is not contacted - she gets the money paid direct to her. Like the OP she has not had problems with this.

However, it is true that a lot of buy to let mortgages state certain "categories" of tenant you can rent to as the mortgage holder and often there are HB and sometimes "families" exclusions. The LL buildings insurance also will have exclusions often as insurance for HB and families is often a great deal higher.

Morally and ethically a grey area.

I once rented out my house when I had to go abroad and told the agent NOT to let to HB - purely because my mortgage company had given me permission to let but only for certain groups and the tenant claimed they were employed. The rent was always paid but when I returned HB cheques kept arriving for the tenant for a couple of months. Not sure what would have happened to me insurance wise if the house had burnt down !

expatinscotland · 13/05/2011 15:52

'I once rented out my house when I had to go abroad and told the agent NOT to let to HB - purely because my mortgage company had given me permission to let but only for certain groups and the tenant claimed they were employed.'

People who are employed can and do claim HB. In fact, the majority of HB claimants are in work.

enidroach · 13/05/2011 16:41

Sorry - expat you are right - I should have said DSS?unemployed? - it was a long time ago and the neighbour confirmed that the tenant was unemployed

Gonzo33 · 15/05/2011 05:53

My mortgage company and insurance insist that my tenant is employed. Does not state that the tenant cannot claim HB.

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