Contrived tenancy

Client with mental health problems isn’t doing too well in current rented accommodation for which he gets HB. His sister is offering him self contained accommodation in her home or to build a chalet in the grounds in exchange for rent . I can’t see this flying with housing benefit section - I think they will say the tenancy is contrived . Am I right to be pessimistic ?

Commerciality will be the issue.  One important thing they can do is make sure there is an audit trail proving rent is paid, although I realise that might be difficult to set up if he is relying on HB/UC to pay any rent at all in the first place.  Other ways to emphasise the business-like nature of the arrangement:

- Cut no regulatory corners on things like planning, regulatory fire safety and PAT testing
- Avoid being an appointee or personal representative
- Keep an up to date rent book/statement of account

Thanks, HB. I don’t think commerciality will be the issue as they intend to enforce terms if needed, charge market rent etc but I do worry that the benefits section will judge the tenancy to be contrived even though the sole purpose is to care for the client closer to family.

I don’t think there is any chance they would make a contrivance decision stick at Tribunal.  That requires conscious abuse of the HB scheme.  What you are describing does not sound like abuse.  Commerciality is always a bigger risk in this type of case.

Many thanks for that