Effective date for non commercial decision

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  • #38370
    Jayne-T
    Participant

    A tenant was living in a property that we were paying HB on. The property was sold to a new landlord on a saturday. We are making a decision that the new tenancy is not commercial – what is the effective date of this decision?

    Is is the saturday as change in tenancy / rent or the following Monday as the decision will end entitlement to benefit.

    Sorry if it’s a simple question but this case have squished my brain!

    #108022
    Kay_Tade
    Participant

    [quote=Jayne-T]We are making a decision that the new tenancy is not commercial – what is the effective date of this decision?[/quote] Well if you are saying the previous liability ended then it would be on the day it ended. As an aside why is this tenancy non-commercial?

    #108023
    Kevin D
    Participant

    Assuming there is a change in liability, the effective date is the first day of the new agreement. Otherwise, the following Monday.

    #108024
    Jayne-T
    Participant

    Thanks for your comments. There was a change in liability, new tenancy agreement increased rent from 300pcm to 500pcm.

    With regards to non commercial decision – we have found out that the Landlord was tenant’s carer for 4 years prior to purchasing the property. There is no evidence that any rent has been collected or paid for 4 years since the landlord bought it. Statement from landlord’s partner that landlord left her for claimant.

    #108030
    Kevin D
    Participant

    Based on the above info, it may well be that a two part decision is appropriate.

    1) there is no liability; or, in the alternative

    2) if there is a liability, the agreement is not on a commercial basis.

    If the evidence suggests both apply, I wouldn’t take a chance on only dealing with one. If a decision is made only on non-comm, the LA is inherently accepting that a liability did exist as a fact.

    #108040
    Andy Thurman
    Keymaster

    [quote=Jayne-T]There is no evidence that any rent has been collected or paid for 4 years since the landlord bought it. Statement from landlord’s partner that landlord left her for claimant.[/quote]

    Confused on the timescales here? When was the change of ownership??

    Based on the original question, I’d say that the HB should cease at the end of the benefit week (change in liability from the day is ‘trumped’ by the end of entitlement rule!!) but this additional info suggests something else again!

    #108041
    Jayne-T
    Participant

    Sorry if the timescales have caused confusion. The decision is a revision as we originally paid HB and only recently has all this information regarding the tenancy come to light.

    #108042
    Kevin D
    Participant

    I’m sticking with “actual date” for the change in circs – HBR 79(2).

    #108049
    Andy Thurman
    Keymaster

    79(2) is “subject to paragraph 8” – where change will end entitlement, its the following Monday. I don’t see any material difference (assuming the non-comm decision is correct) between this and if someone actually left a property mid-week on the date their liability ended.

    I agree with the 2-part decision approach – are there any further grounds to also consider claimant & landlord as a couple given the ex-wife’s statement?!? Probably one there for the DWP!!

    #108110
    Jayne-T
    Participant

    Thank you for all your comments and help, it is much appreciated.

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