lease for business property – DHP

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    Customer is getting UC housing Costs
    asked for a DHP as under 35 restriction app;lied
    Lease is for a workshop/chalet , states customer liable for business rates and states

    ” NOT to use or permit the premises to be used otherwise than as a workshop and studio provided always and that the tenant acknowledges and admoits that notwithstanding the foregoing provision as to the user of the premises the landlords does not thereby ior in any other way or make not has given or made at anyother time any representation or warrantly that any such use is or will be or will remain aa permoitted or authorised use”

    I have no idea what that means….

    Customer advises she is living in the studio workshop ( she also runs a soap making business from there ) as its London as she cant afford both a place to work from and live.
    UC are paying housing costs for the address based on the same lease.

    there is a shortfall in rent, but its not a residential rent and think customer prob breaking terms of her lease by living there.

    If it were a HB case, I dont think itd be eligible so not sure I can pay a DHP on it – but as UC have accepted as a housing cost , does that give green light to a DHP?

    any ideas please?


    The lease conditions are for the landlord and tenant. It is a breach of the lease of course but hardly uncommon.

    UC should not be paying housing costs on the full lease rental and there is a strong argument that they should not be paying at all because it is business and not rental premises (but then this is an area DWP assessment staff really struggle with). To be fair to them they admit they have issues and there is no one they can turn to within DWP for advice.

    Should your Council Tax be charging business rates AND Council Tax for the part lived in?

    Can you pay a DHP? Reluctantly I say yes because UC housing costs are being paid. I dont think they should be but they are as a matter of fact.

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