HB Vs Rental charge

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  • #38744
    fayemc
    Participant

    I have a strange scenario and I was wondering if anyone could shed any light on whether our assessment is correct.

    We have an elderly customer who is in receipt of guarantee credit and is renting a private property for the monthly charge of £910.00.

    This is an old claim so is subject to the Rent Officer rules. The CRR for this property is £800.00 p/m so claimant is entitled to the maximum amount of £184.62 p/w.

    He has 2 boarders who are living at the property and he is charging them each £85.00 per week. They are both entitled to receive £73.50 per week.

    Therefore, we are paying a total of £331.62 p/w in HB. However, the rent being charged only equates to £210.00 p/w.

    Surely this cannot be correct, as our customer is in fact receiving £121.62 p/w more than he is being charged by the L/L. However, how would we assess this any different?

    Any help would be greatly appreciated.

    Thanks

    #109465
    Anonymous
    Guest

    The rent received from boarders is part of his income, not part of his rent – as long as this is taken into account in his PCGC I think this arrangement is OK. If it wasn’t for the fact that the boarders were receiving HB would you be concerned?

    If there appeared to be serious abuse I would consider restricting under 12B(6) but I don’t think that is appropriate here…

    #109467
    fayemc
    Participant

    Many thanks Michael. Thats great. 🙂

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