SHARED OWNERSHIP AND UNDER OCCUPATION

Hello.  We have a number of properties that are `shared ownership` - ie the tenant `buys` a percentage and `rents` the remainder.  If Housing Benefit is received for the `rented` portion and the property is deemed as being to large for the families needs, what will happen when the under occupation rules come into force?  Will the HB award still be reduced by the appropriate percentage?  Many thanks

As, AFAIAA, the social housing reduction will be by a percentage figure, depending on the number of surplus bedrooms, then that %age applied to the lower rent portion of a shared ownership property would seem proportionate (cough).

Many thanks for your comments.

My guess is that nothing will happen.  Already shared ownership is treated very favourably.  If the freeholder is a registered housing association then the property is always an excluded tenancy, so there is no provision to restrict the rent element other than the very general provision that allows any restriction in any circumstances if it is reasonable.

Further,even if the freeholder is not a registered assocation the DWP confirm that the figure is not pro-rata’d according to the percentage owned.

With favourable treatment like this I would expect there to be a regulation exempting this type of housing from any further restrictions.