Terms & Conditions

[liz k]

A scheme is being proposed where a HA will set up a furnished tenancy;

The scheme as outlined works as follows-

-The tenancy agreement states that the furniture never becomes the property of the tenants.
-The tenant gets to choose the furniture they want from a shop that has an arrangement with the LL. Each item of furniture has an applicable weekly service charge.
-The service charge is then levied on the tenant for a period of four years – after which it will not be charged to the tenant even if they continue to live in the property and use the furniture.
-Any repairs to the furniture are the responsibility of the tenant.

Our opinion is that HB will not pay the furniture charge – HA has responded stating that the scheme is in operation in other authorities.

Please can anybody advise if they are aware of similar schemes and if so they are / aren’t paying the furniture charges and reasoning for their decisions?

Any other comments/ opinions would be appreciated.

[markp]

One thought strikes me – contrived rent amount to take advantage of HB scheme, given that after four years the charge disappears?

Do I know what I'm doing? The jury's out on that........................

[Anonymous]

I’d say it is an eligible service charge however, depending on the amount charged, it’s open to you to restrict the [u:d4b9a624e1]amount[/u:d4b9a624e1] that is eligible if you consider it excessive.

[quote:d4b9a624e1]Excessive service costs

4. Subject to paragraph 2, where the relevant authority considers that the amount of a service charge to which regulation 12(1)(e) (rent) applies is excessive in relation to the service provided for the claimant or his family, having regard to the cost of comparable services, it shall make a deduction from that charge of the excess and the amount so deducted shall be ineligible to be met by housing benefit. [/quote:d4b9a624e1]

[Anonymous]

It immediately occurs to me that the HB scheme will actually be furnishing a property. Surely the answer is no? 😯

[Anonymous]

I know of a similar case that was refused and upheld at tribunal. PM’d Liz with the details – the authority concerned will know and say more.

[Author]

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