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The Masked Tulip

Lotto Win Mum Paid Benefits

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http://www.mirror.co.uk/news/tm_objectid=1...-name_page.html

LOTTO WIN MUM PAID BENEFITS

By Jeremy Armstrong

A WOMAN who won £1.2million on the lottery is getting thousands of pounds in benefit after buying homes for her children and charging rent.

Freda Cowley, 46, bought two houses with her winnings and moved in her son David and daughter Rachel.

But because they are unemployed they get housing benefit to cover their rent, which is paid directly to Freda.

Freda, 46, of Newcastle upon Tyne, said she was perfectly within her rights to collect more than £8,000 a year in benefits.

She added: "Lots of people buy property and rent it out, so I'm not doing anything wrong.

"I do get the housing benefit paid to me, but I charge them the minimum and pay for any repairs myself.

Freda's local council confirmed that she was entitled to the benefits.

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Aren't there rules to stop close relatives renting houses to each other? [sarahBell]

Yes, there are rules about 'contrived tenancies' which may apply in this case.

'Young People -- Finding A Place To Live':

http://www.brent.gov.uk/phiu.nsf/61b63a407...33;OpenDocument

Renting From Relatives

If you rent from a close relative you may also find that the Council will not pay you any housing benefit unless you can prove that you have not entered into something called a Contrived Tenancy. This is where someone deliberately sets up a bogus tenancy with a relative or a friend just to take advantage of the housing benefit rules.

Edited by Jeff Ross

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Hmmm, her kids would still recieve benifits if they rented off somone else.... she would still recieve rent if she rented the houses to somone else. My guess is she has bought two properties at over inflated prices and renting them for cheap. If that is the case this is probably saving the government money, they have better housing rental stock for two people at a cheaper price.

It just sounds bad.... :P

Edited by moosetea

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Aren't there rules to stop close relatives renting houses to each other?

I thought there were rules as well, but look in relation to the tax breaks and guaranteed rentals yields how can you go wrong? Its only the higher council taxes that occur, but they are out of the inflation measure. So the BOE can keep printing money for the new economy without reference to people who hold onto the concept of title of savings being devoured by the title of real property. Which mean people can afford the council taxes, but not the houseprices.

Hmmm, her kids would still recieve benifits if they rented off somone else.... she would still recieve rent if she rented the houses to somone else. My guess is she has bought two properties at over inflated prices and renting them for cheap. If that is the case this is probably saving the government money, they have better housing rental stock for two people at a cheaper price.

It just sounds bad.... :P

Thats rubbish - its clearly a scam - you can get a mortgage and move your brother in with tax payers paying your mortgage for you!

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Guest Baffled_by_it_all

Well, it's free money isn't it?

Just hold out your hand - and there you go.

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IMO even if you win all that money you can't change - you just amplify/extend what you are

It's petty IMO

Edited by dnd

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I also know someone who is doing this they are renting a house to thier son and his wife who are on benefits. There are rules yes but as long as the relative

has a commercial tenancy the council have to pay the rent so they get the house paid for out of our tax.

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Big deal. There are plenty of landlords having their mortgages paid by the taxpayer. So she's their mother?

Some scumbag landlords prefer DSS as they're assured of the money, unlike trying to cater for the working poor who get or no help from the state and are therefore more of a risk.

The right to buy sold of the nation's housing stock - much of it long paid off - and instead pays market rents into the pockets of people who simply borrowed a load of money of the bank.

Edited by CrashedOutAndBurned

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Some scumbag landlords prefer DSS as they're assured of the money, unlike trying to cater for the working poor who get or no help from the state and are therefore more of a risk. [COAB]

Working people on low incomes can still claim Housing Benefit and Council Tax Benefit -- subject to a tapered reduction.

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Some scumbag landlords prefer DSS as they're assured of the money, unlike trying to cater for the working poor who get or no help from the state and are therefore more of a risk. [COAB]

Working people on low incomes can still claim Housing Benefit and Council Tax Benefit -- subject to a tapered reduction.

Only if they're part time/have kids/medical problems. If they're just a couple on 10k each struggling to pay market rate rents - nada.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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