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    I am looking for anyone’s opinion on this particular case, which I do not want to pay, as I believe the tenancy has been created to take advantage, but I’m not sure on what exactly to turn them down!

    Scenario – Property has been occupied since February 2004, but no rent has been charged prior to the ‘tenancy’ being created as of 1 October 2006. CTB has been live in payment since March 04. Tenants are renting from their daughter & son in law who live elsewhere. Reason for creating the tenancy – change in the financial circumstances of the landlords.

    The property in question was purchased in 2004 for the sole purpose of providing accommodation for the claimant & partner. (this was stated in a letter received in September 2004 written by the son in law)

    Over to you folks!


    Well….I think it is established in caselaw that a change in the landlords’ circs can provide a reasonable justification for the creation of a tenancy.


    Difficult one this. If the landlords have started to charge rent because they need the money, it’s hard to argue that it is not a commercial arrangement.

    If it is a commercial arrangement, it is even harder to argue that it was created to take advantage of the HB scheme. It was created, primarily, because they needed the money.

    While not impossible, it would be very hard to prove otherwise and I doubt that a tribunal chair would find in your favour.


    It all comes down to the financial circumstances of the LL and what would happen if no rent was paid.

    If LL finances have genuinly taken a turn for the worse I can see no argument that it has been created to take advantage. Presumably the other option would be to sell it off.

    Similarly I can see nothing to suggest it is not a commercial agreement if they need an income what better place to get it from than real property?

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