Daughter has bought a property which she wants to let to her Mother at a rent similar to that charged by the local Authority and HA's - not with the intention of taking advantage of the HB regs or to make a profit - but to ensure that her mother has a secure home, and that the daughter's costs were covered.
Does anyone see possible problems with that ?
I remember reading somewhere in a Commissioners decision that it was said that there was nothing intrinsically wrong with that arrangement.....

Based on the post, there are potential issues.

The difficulty in this case is obviously not the honesty of the situation, but.....

1) Long tenancy. If the idea is to provide the tenant with a home for the remainder of her life, the tenancy will be deemed to be for 90 years. HB is not payable on tenancies exceeding 21 years. Relevant law: .

2) Non-commercial. There are so many arguments at the heart of this (both for and against), that you could give a dozen ppl the same facts and end up with a 50/50 split on the decision, AND ALL with different reasons.... My initial suggestion is to start with R(H) 1/03 (aka CH/0627/2002).

3) Contrived. Based on your post, I can't see this one sticking.

NB: Assumption made that the L/L would not be living in the same prop.

Sorry the answer is not definitive, but hope it helps.

Regards

Agree with Kevin about the long tenancy bit - that's where most people make their first mistake when renting to family.

Could be worth drawing up a proper tenancy agreement - i know technially one is not needed in order to claim HB - but it can make life easier, especially if an appeal is needed in the future.

We knew about the 21 year rule and advised accordingly - having spoken to our HB section, I don't think we will have too much of a problem, providing the rent is set at the level envisaged, and there is a proper tenancy agreement.

Hmm - the relevant law for long tenancies appears to have mysteriously dematerialised....

It is: HBR 10(2) & CH/2743/2003

Regards

Thank you people for the prompt and helpful responses -