Good morning,

Some of my most-read articles cover tenancies between relatives, where a Housing Benefit (HB) or Universal Credit (UC) housing-costs claim has been refused. In most cases, I can overturn the DWP or the Council’s decision as there is nothing unlawful or improper about renting to a family member who needs help to meet their rent. What matters is whether the tenancy is genuine: normal market-style terms (no special treatment), a clear liability to pay rent, and evidence that rent is expected and paid (ideally by bank transfer).

In a recent case, a council in the south of England refused HB to a mother renting from her son. They contacted me after reading an earlier article about a successful family-tenancy appeal.

Background

The son and his wife bought a two-bedroom property near their own home so the mother (an older tenant, recovering from a stroke) could live independently. She lived there rent-free for several years.

When the son and his wife later faced serious health issues and a sharp drop in income, they could no longer meet the mortgage costs. They agreed the mother would start paying rent and, on advice from Citizens Advice, she applied for Housing Benefit.

The council refused, suggesting the arrangement was created to take advantage of Local Housing Allowance rules. Citizens Advice were unable to help further with an appeal.

Challenging the decision

On the facts, the refusal appeared unsustainable. Rather than wait many months for a tribunal hearing, I wrote directly to the council’s Chief Executive, setting out the background, the legal test (including Regulation 9 of the Hb Regulations 2006), and the relevant case law, much of which supports claimant appeals.

Outcome

The Chief Executive acknowledged my email and referred it to the Housing Benefit team. The next day, the HB Manager confirmed the decision had been revised in the claimant’s favour.

This avoided the likely need to sell the property and protected the mother’s housing and independence.

Not every case is decided in the tenant’s favour. If you are renting within the family and a claim is refused, take specialist advice early: the rules are detailed, and councils must apply the correct legal tests and relevant case law. The same equally applies to DWP but they’ve yet to receive the memo explaining this!

If you need help or know of anyone in this position, email bill@ucadvice.co.uk or phone my mobile (below).

Regards

Bill Irvine

UC Advice & Advocacy Ltd

Tel: 07733 080 389