Setting the rent at an affordable level
Universal Credit

__chris__
__chris__
31 Thanks
78 Posts
2 months ago
0

My daughter is shortly to move out of my flat that she has been using temporarily.
I have previously let out as a student property.

I am minded to let it to one of her work colleagues, subject to all the necessary checks of course.
This person is pregnant and she and husband are expecting the new arrival, their first, in September.

I am attracted to letting the property on a long-term basis (5 years+)
The Local Housing Allowance figure for the area for a 2 bed flat is £304.93 per week.
I'd be quite OK with this figure as it would avoid issues regarding voids etc. and it's not all about maximising the profit for me (linked to how I got the money to begin with) and I'd like to feel good about a long-term let to allow a local school worker and family put down roots in the area.

Can I set up a tenancy that automatically uses the LHA as the reference for future rent reviews? That way, if they were claiming support (previously Income Support, Child Tax Credits, Housing Benefit etc. but I guess it'd be Universal Credit now) they would always be able to afford it, wouldn't they? Should I be getting a full income/outgoings analysis or is leaving it at the LHA level going to be enough?

To be honest, I don't know the best way to go about this so any/all help would be welcome.

If it doesn't work out with this person, are there still schemes covering SW London where a local Housing Association will guarantee rent for X years and the place returned back in good condition in exchange for a long let?

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