Contrived tenancy

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A contrived tenancy is a term used in British housing law to describe a situation where a tenancy is created in order to take advantage of the housing benefit system. [1] Contrived tenancies can occur where a family member 'rents' to a family member but on a non-commercial basis. Contrived tenancies also exist if a landlord only asks for rent when a tenant is not working and so entitled to Housing Benefit but not when a tenant is working. [1]

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Local Housing Allowance (LHA) was introduced on 7 April 2008 to provide Housing Benefit entitlement for tenants renting private-sector accommodation in England, Scotland and Wales. The LHA system introduced significant changes to the way Housing Benefit (HB) levels are restricted and how benefit is paid. It did not replace Housing Benefit - it is just a different way of calculating entitlement under the existing Housing Benefit scheme: the Local Housing Allowance is based on the 30th percentile of local rented accommodation, while the 50th percentile or median was used from the introduction of the policy until 2011. LHA rates relate to the area in which the housing-benefit claim is made. These areas are called "Broad Rental Market Areas", defined as "where a person could reasonably be expected to live taking into account access to facilities and services", and a selection of rents in the area are used to determine the LHA for each category of housing in the area.

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The assured shorthold tenancy (AST) is the default legal category of residential tenancy in England and Wales. It is a form of assured tenancy with limited security of tenure, which was introduced by the Housing Act 1988 and saw an important default provision and a widening of its definition made by the Housing Act 1996. Since 28 February 1997 in respect of accommodation to new tenants who are new to their landlords, the assured shorthold tenancy has become the most common form of arrangement that involves a private residential landlord. The equivalent in Scotland is short assured tenancy.

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The Housing and Planning Act 2016 is Act of Parliament in the United Kingdom that makes widespread changes to housing policy and the planning system. It introduces legislation to allow the sale of higher value local authority homes, introduce starter homes and "Pay to Stay" and other measures intended to promote home ownership and boost levels of housebuilding. The Act has been subject to a number of criticisms by those opposed to the loss of social housing promoted, the extension of right-to-buy to housing associations and possible work disincentives under "Pay to Stay".

References

  1. 1 2 "Housing benefit if you rent from a family member - Shelter Scotland". Scotland.shelter.org.uk. 2 June 2015. Retrieved 13 September 2015.