Below does not deal with the situation where the landlord ‘lives’ with the tenant who is a relative. In that scenario, there is no entitlement to housing benefit (or local housing allowance) [r.9(1)(b) HB regs 2006].
Below deals with the situation where the landlord lets to a relation a different dwelling to where he lives.
Regulation 9(1)(a) Housing Benefit Regulations 2006 provides:
9.–(1) A person who is liable to make payments in respect of a dwelling shall be treated as if he were not so liable where–
(a) the tenancy or other agreement pursuant to which he occupies the dwelling is not on a commercial basis;
Therefore, if a tenancy is not on a commercial basis, then the tenant is treated as though they are not liable to make payments of rent and therefore are not entitled to housing benefit (or local housing allowance).
Many local authorities simply assume that a tenancy granted by a landlord to a tenant who is a relation for example brother, sister, son or daughter etc. is on a non commercial basis. This is not true. All the
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