Rent Allowance query when renting from a family member?

Hi there,

I'm asking this on behalf of a friend who isn't yet registered here - despite my prompting on numerous occasions! lol

Anyways, they have recently found themselves unemployed and are currently going through all the red tape and paperwork in getting a claim sorted with SW.

They are currently in private rented accommodation however it looks like their landlord will not accept a rental allowance so they are looking for a new place.

As it happens their Aunt is a landlord and recently has an apartment left vacant and is finding trouble renting it at the minute.

Their aunt is fully registered and will accept rental allowance etc...

So now my friend is thinking it would be ideal to move into their aunts place - which would both help their aunt out, and of course themselves as the aunt will accept the rental allowance and the place is well within their budget now etc...

They're unsure however if it's ok to rent from a family member to get a rental allowance?

I've done a bit of diggin on their behalf and I note that renting from parents is not acceptable obviously, however I'm not sure what the situation is regarding renting from extended family members?

They want to be upfront and above board with everything and if the above will pose a problem obviously they will not go down this route.

Don't suppose anyone knows what the stance on this is? Or any links to info which I could refer them to?

Thanks everyone.

My sis who is on rent allowance is one of my tenants.
We were open about it with SW
They came and inspected the property.
No problems so far TG

Hi Mommah,

That's great, thanks so much I'll pass the word on so - definitely sounds like it might be a possibility then in that case.

Glad to hear it's worked out ok for the both of you

There should be no problem with the Rent Supplement application as Mommah said.

I suggest that if your friend is going to rent a property, they get organised quickly as the regulations on qualifying for Rent Supplement will be changing next month as a result of Tuesday's budget.

Thanks Gipimann for that - sounds like they're good to go then!

They were a bit worried about it as they wanted to be up front about it all and didn't want to break any rules or regulations regarding the rent supplement stipulations.. sounds like it should be ok then.

I think they'll be acting fairly soon on it now so, just wanted to know where they stood first.

Re: the new rent supplement rules as proposed in the Budget Version 1.2 - does anyone know what they are yet?

As far as I can tell nothing concrete as actually been announced yet has there? I gather that there'll be something like a 15% decrease?

Just out of curiosity (and for my own benefit as I'm currently on a rental allowance) if and when these new changes are implemented will they affect everyone - as in those currently in receipt of a RA, or will it just apply to new applicants (like with the new under 20's Jobseekers rate which I gather will only affect new applicants and not those under 20 who are already in receipt of JSA?)

Thanks again for all the input!

Here's the link to the post in the Budget 2009 forum which listed the changes announced in the press release from the Minister for Social & Family Affairs.

Reductions in Rent Supplement will apply to everyone, both existing customers and persons applying after the implementation date of the change (not finalised yet, but likely to be May or June at the latest).

I am assuming this will aply to mortgage supplement too?

ivor,
As far as I know, the only change affecting mortgage interest supplements is the increase in the minimum contribution (18 to 24 euro per week).

Thanks for that Gippiman.