Thinking about renting and claiming Housing Benefit?

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1 Are you or a member of your family disabled? Thinking about renting and claiming Housing Benefit? A guide for disabled people on claiming Housing Benefit, and for families of disabled people who would like to buy a property for them to rent.

2 About Us Ownership Options is a Scottish charity that aims to resolve the housing problems faced by disabled people, particularly in the private sector. This leaflet is one of a series of general information leaflets about different aspects of home ownership. When we use the term disabled this includes people with learning difficulties, sensory impairments and mental health problems. It also includes families who have a disabled person in their households. Buying a home involves financial and legal transactions which can be complex. We provide information and advice, but we are not lawyers or financial advisors. Everyone should seek appropriate professional advice. Introduction This leaflet tells you what you need to know if you are on a low income, or receiving State Benefits, and want to rent accommodation. You may need financial assistance through Housing Benefit to pay your rent, and the rules when renting from a private landlord are different from the rules if you want to rent a council house or housing association flat. There are certain restrictions on claiming Housing Benefit if your landlord is a close relative. It is important to be clear about the rules and about your rights. Part 1 describes the basic rules for tenants applying for Housing Benefit Part 2 tells you what the rules are if you rent your home from a relative

3 Part 1 claiming Housing Benefit Who can claim Housing Benefit? Housing Benefit is a social security benefit that helps people on low incomes pay their rent. Tenants in any type of accommodation privately rented, housing association or council - can claim Housing Benefit if their income is low enough. Lodgers or boarders, or people who simply pay for the right to occupy a room in shared accommodation, can also claim Housing Benefit. Anyone with savings or investments of 16,000 or more will not be eligible for Housing Benefit, even those on low incomes. However savings of 3,000 or less ( 6,000 if you are aged 60 or over) are disregarded for the purposes of Housing Benefit. Some other people not normally eligible for Housing Benefit are those renting from a close relative living in the same house, and those who previously owned the house which they now rent. There is more information about this in Part 2 of this leaflet. How to claim Housing Benefit Housing Benefit is paid by the local council for the area in which you live, but there are several ways of claiming it. When you claim Income Support, Jobseeker s Allowance, Employment & Support Allowance or Pension Credit, you will be asked if you wish to claim Housing Benefit (and Council Tax Benefit) at the same time. The Jobcentre or Pension Service will pass your details to the council, who will normally ask you for more information about the tenancy and your landlord. They will not need to ask for any more information about your income or savings.

4 Calculating Housing Benefit Before working out how much Housing Benefit you are entitled to, the council must decide how much of your weekly rent is eligible. This is normally the rent itself, but some things included in your rent, like meals, heating and lighting, are not eligible. In a local authority or housing association tenancy, all of the rent will probably be eligible for Housing Benefit. Some charges for services such as a warden or a lift are also eligible. Charges for personal care and support are not eligible for Housing Benefit. The council may decide to restrict the rent that is eligible for Housing Benefit to an amount they consider reasonable for your requirements. This can be a particular problem in shared ownership agreements where the occupancy charge is far higher than a normal rent for that size and type of accommodation. You should seek independent specialist advice if you are in this situation. They may also restrict the rent eligible for Housing Benefit because they think that you are under-occupying the property, so it is important that you tell them if you need an extra room for equipment, or for a care worker to sleep over. From April 2011, disabled claimants who do not have a resident carer will automatically be allowed to claim for an extra bedroom. If you rent from a private landlord, the rules are more complex. Each council publishes a list of the amounts they will pay in Housing Benefit - called Local Housing Allowance (LHA). These amounts relate to the size of your household, and not the size of the actual accommodation. The intention is to allow you to shop around for suitable accommodation that you can afford. When you find accommodation, if the LHA amount is more than your actual rent, you will get to keep up to 15 a week of the extra Housing Benefit. If it is less, you will have to pay the extra rent out of your own income.

5 Appeals and Reviews You will be given written notice of a decision about your application. If you disagree with any decision about your Housing Benefit entitlement, you can ask for a revision of this decision and you have the right to appeal. If the council do not change the decision, it will automatically be referred to an independent tribunal which will look at all the evidence and reach a decision on your appeal. Seek advice about what to do as soon as you receive a decision you disagree with. The time limits for making an appeal are very strict so even if you want to ask for more information or a written explanation of the decision, make sure you ask for a revision or make an appeal within the time limit. Increasing your entitlement If you are awarded Housing Benefit, but do not receive enough to cover your rent, you can ask the council for a Discretionary Housing Payment (DHP). This is paid at the discretion of the council in cases of hardship, and can top up your Housing Benefit to the level of your rent. It is also available for Council Tax payments where your Council Tax Benefit does not cover the full liability. You normally apply for DHP to the Housing Benefit Section in writing (some Councils have a DHP claim form), providing as much information as possible about your other expenditure, and the reason you need DHP to pay the remainder of your rent. You may want to get guidance from the council or an adviser before you apply for DHP. Every case is different and will be considered on its own merits. Bear in mind that councils have a limited amount of money for DHPs and you do not have an automatic right to receive them. You cannot appeal against a decision about DHP, but you can ask for the decision to be reviewed.

6 Part 2 - Renting accommodation from relatives Where a tenant lives in the same property as a close relative If you live with parents or other close relatives, it is not generally possible to get Housing Benefit for renting a room in their house. A close relative is defined as a parent, parent-in-law, son, son-in-law, daughter, daughterin-law, step-parent, stepson, stepdaughter, and the brother, sister, spouse or partner of any of these people. The council will have to decide whether you are residing with the relative who is charging you rent. Even if you have your own bedroom, if you share other areas of the house with your relative, you are likely to be considered as residing with them. However, if you live in a granny flat attached to your relative s house, or they have converted part of their house into self-contained accommodation for you, you may be able to claim Housing Benefit for the rent. Where you rent another property from a relative Many disabled people want to live independently of their families, and parents (or other relatives) may be able to help you to set up your own home. If your family buy another self-contained property and rent it to you, in most circumstances you will be entitled to Housing Benefit for the rent. The council will consider whether it is a commercial agreement and check that it was not set up to take advantage of the Housing Benefit scheme. This means they will look at all the relevant facts and circumstances in the case. For example they may look at whether the rent is very high compared to other properties in the area, or whether the property is too large for you and your household. It is worth noting that, if you and your relative knew that you could not pay the rent without Housing Benefit when the tenancy was set up, this is not necessarily sufficient reason for the council to refuse to pay Housing

7 Benefit on the grounds that you are taking advantage of the scheme. There are special rules if you previously owned the property, sold it to someone, and are now renting it back from that person. You will not normally be entitled to Housing Benefit for that property for 5 years after you sold it. There is an exception, if you can demonstrate that you had no other option but to sell it, but you should seek advice before you sell a property that you then intend to rent back from the new owner. Refusal of benefit If you apply for Housing Benefit and it is decided that you are not entitled, you can appeal against this decision. More details about appeals are given in Part 1. Getting advice This guide is intended only as an introduction to the Housing Benefit rules for families and professionals assisting disabled people to acquire suitable housing. The rules are complex and many regulations are open to interpretation. For more guidance please seek professional advice from the Citizens Advice Bureau or your local welfare rights officer at the council. You may also get advice from your local Disabled Persons Housing Service. If you are thinking about buying a home, or renting from a relative, and just want to talk it over, you can contact us at Ownership Options. Citizen s Advice Bureau or Rights Office: Look in your local telephone directory for your nearest office. ENABLE (which can advise on Trusts and has a corporate trustee service) can be found at 6 th floor, 7 Buchanan Street, Glasgow G1 3HL Tel Local Law Centres may be able to help with professional representation at appeals tribunals.