I have a tenancy with 5 named tenants on a joint and several basis. Two of them are students at university with no income, and the main tenant (their mother) is on Universal Credit.
The issue we’re facing is that Universal Credit is reducing her housing support on the basis that there are multiple tenants on the agreement who can contribute, even though in reality the students are not contributing financially.
From a legal perspective, the tenancy is joint and several, so each tenant is liable for the full rent, but UC seems to be interpreting this as a shared household where everyone should be contributing.
Has anyone dealt with a similar situation?
Is there a way within OpenRent to remove some tenants mid-term (e.g. convert them to permitted occupiers)?
Or is the only option to issue a new tenancy via renewal?
Has anyone found a structure that works better for UC assessments?
No, you cant convert them to permitted occupiers, but I dont think it would make any difference for UC purposes anyway. You need to get some help from a specialist in UC rules. I would suggest Bill Irvine of universalcreditadvice dot com.
@Andy55 but why exactly shouldn’t they be contributing? Why are they named on the tenancy as tenants if that wasn’t what is intended? Student loans are intended to cover things like housing costs
They are university students and are not in a position to contribute meaningfully towards the rental costs. Based on the information I have told, Universal Credit has reduced the mother’s entitlement on the basis that there are additional tenants on the lease (irrespective of them being able to contribute).
I have asked them to obtain confirmation that, if I were to remove these individuals from the tenancy, the mother’s Universal Credit payments would increase accordingly before I consider taking any action.
As a potential fallback, the tenancy could be terminated and a new agreement issued with the students removed as tenants and reclassified as permitted occupiers.
If the mum’s on UC, and they’re living at home then each of the students is in receipt of £9k in loans (outside London) and she’ll take a monthly hit on her UC housing allowance with a reduction of about £85 per child cos they’re in receipt of loans which the government expects them to use to “contribute meaningfully towards the rental costs”. That’s why they’re reducing her UC.
The only way that she can help herself is to move somewhere smaller suitable for one with lower rent and let the poor darlings fend for themselves in the big bad world out there.
Both the students should be working part time anyway while they study and full time in holidays. That’s how uni works.
it shouldn’t really be you who has to take any action.
The tenancy agreement is between you and the tenants. Not between you and UC. It is up to the tenants to find a means to pay the agreed rent. If they can’t afford it they should move to something they can afford. You are running a business not a charity. Nor are you organizing their finances for them you aren’t their accountant or social worker.
You are being v generous trying to sort it out for them and maybe that’s worth it to keep good tenants