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Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 71031
Experience:  Over 5 years in practice
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I am a private tenant in London and have a fulltime temporary

Customer Question

I am a private tenant in London and have a fulltime temporary contract job. Temporary contracts is what i do usually, with a few weeks here and there seasonal being unemployed during the whole year and I got JSA while unemployed.
I want to do this - With a deposit from my savings of £5000 and another amount from family whom can gift me £20000, to purchase a 3 bed property for investment in outer london, uk. I then want to rent this property to private tenants for £700 per calendar month,. This would be then used by me to pay lender or bank mortgage. Note, rental income would be same amount as monthly mortgage payments, therefore I make no profit.
My concern is, after I purchase property, I am a private tenant receiving Housing Benefit on a 3 bedroom house as have wife and 4 kids staying.
Can I carry on receiving the Housing Benefit and if so what percentage and if reduced by how much apprx from the local council borough for London accomodation as want to stay here due to work nearer for me and schools nearby for children already attending there.
Submitted: 3 years ago.
Category: Law
Expert:  Jo C. replied 3 years ago.
Thank you for your question. My name is ***** ***** I will try to help with this.
I am really sorry but if you have a second property they will say you are not eligible for housing benefit. However you arrange your finances will make no difference.
I am afraid there is no way around it and really nothing positive I can say on the point. The DWP are much stricter generally than they used to be I'm afraid.
I do understand it is bad news for you but I can only give you truthful information.
Can I clarify anything for you?
Customer: replied 3 years ago.

It is not 2nd property. Only a, first time buy property but instead of residing in this, will let to tenants.

Expert:  Jo C. replied 3 years ago.
Yes, but is is a property owned by you whatever you choose to do with it. Therefore you are not eligible for housing benefit on another house I'm afraid.
Sometimes they will pay mortgage relief on a property that is being used as a home but not to let out Im afraid.
Customer: replied 3 years ago.

Thanks, ***** ***** did say its possible when I called today. Therefore unsure what to understand fully. Will you accept £15 as a gesture anyway.Smile

Or I can pay your full amount not now, but after again talking to HB dept on this to get a clear picture on my circumstances and their decision. If it matches then fine

What do you prefer.

Customer: replied 3 years ago.

Reply please.

Expert:  Jo C. replied 3 years ago.
Sorry I lost my connection.
I am sorry but they will not lay housing benefit if you have a rental property however negative the equity may be.