After a long pause while everyone thought about it....................the answer is........ Possibly.... or possibly not. Moral judgements aside (which the HB regs dont give us the power to make anyway), was a prohibition order given against the property? If not, then there would appear to be no reason why HB would not be payable.
Hb depends on occupation (does he live there), and liability (does he have a legally enforceable duty to pay). if the liability cannot be enforced because there is a legal restriction (eg Housing Act prohibition order) on occupation, then HB is not payable. If theres no restriction, the liability can be enforced and HB is payable.
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