Informal lodgers… Use & Occupation agreements

I think they’re essentially a licensee Dan, see section 3 of our factsheet Preventing evictions

Absolutely no reason why housing costs can’t be awarded in such scenarios and from what you’ve said, there’s evdience to make the case.

There’s no requirement that this sort of residential tenancy or license agreement be in writing. It isn’t really important to establish whether this is strictly a tenancy or a license as either can be covered by UC.

It’s also irrelevant that the agreement is or may be in breach of a “no sub-letting” clause. The agreement is binding between the tenant and the immediate landlord even if it places that landlord in breach of their own tenancy.

But yes you may run into evidential issues. I think you would have had the same issues with most LAs under HB too to be fair.

Elliot Kent - 20 June 2019 01:36 PM

I think you would have had the same issues with most LAs under HB too to be fair.

I’m glad to say that our HB dept are quite pragmatic in cases like this.

Paul_Treloar_AgeUK - 20 June 2019 01:33 PM

I think they’re essentially a licensee Dan, .

I did think that but UC doesn’t use “licencees” at all and terminology’s important so U&O will be the way forward while dealing with UC.

Thanks both for the input.

“Evidence that they’re paying rent is surely evidence that they’re liable when they’re obvs living there.”

I would try and show its commercial.

Is the rent set at a commercial level?  Has there been a previous payer in that property? Did your client previously pay rent?  Are his belongings there?

Dan Manville - 20 June 2019 04:45 PM

I did think that but UC doesn’t use “licencees” at all and terminology’s important so U&O will be the way forward while dealing with UC.
.

The one thing that this agreement definitely isn’t is a U&O arrangement. U&O covers a situation in which the occupier explicitly does not have permission to remain in the property but pays damages for their unauthorised presence.

Licenses are specifically covered by the legislation - see para 2(b), Schedule 1, UC Regs and perhaps more pertinently ADM F2041.

Dan Manville - 20 June 2019 04:45 PM

Elliot Kent - 20 June 2019 01:36 PM

I think you would have had the same issues with most LAs under HB too to be fair.

I’m glad to say that our HB dept are quite pragmatic in cases like this.

Paul_Treloar_AgeUK - 20 June 2019 01:33 PM

I think they’re essentially a licensee Dan, .

I did think that but UC doesn’t use “licencees” at all and terminology’s important so U&O will be the way forward while dealing with UC.

Thanks both for the input.

Hi Dan - we’ve not to date had a problem with UC accepting a Shared Lives agreement as evidence of housing costs and that is a licence.

Well, we did have a problem but it was them paying too much not that they wouldn’t pay at all..

Just resurrecting this thread to see if I can clarify something in a similar case please?

Woman and school-age son rent a room from a friend due to needing to leave current accommodation quickly. Again, no formal tenancy agreement, just an informal agreement to pay £X a week for the room.

Presumably the housing costs element is calculated under LHA rules but on what basis? They are entitled to two bedrooms but they’re only occupying one room - I’m assuming they can therefore be paid up to the 2-bedoom rate, is that correct?

Yes that’s correct.

For UC, the LHA is only ever based on the number of rooms you need. What you actually have is irrelevant.

There could be evidential issues which could be addressed by drawing up a lodgers agreement.

Elliot Kent - 09 October 2023 12:32 PM

Yes that’s correct.

For UC, the LHA is only ever based on the number of rooms you need. What you actually have is irrelevant.

There could be evidential issues which could be addressed by drawing up a lodgers agreement.

Thanks Elliot, I thought that was the case and I was going to suggest drawing up a written agreement, just to make things slightly more formal.

I have had lodgers in the past who have claimeed HB and I used an off the peg lodger agreeement

Here it as as a word document

Stainsby - 09 October 2023 04:03 PM

I have had lodgers in the past who have claimeed HB and I used an off the peg lodger agreeement

Here it as as a word document

Thanks Derek, appreciated.