LETTING OF ROOMS

Press, Volume XCVII, Issue 28552, 3 April 1958, Page 8

LETTING OF ROOMS

Effect On Social Security i Many social security benefidaries who live in big family homes are said to be anxious to let surplus rooms, but unwilling,' to do so because they fear a reduction in their benefit through ■ having an increased income. But special allowances have been made, and a statement of the position has been set out by the City Council’s housing committee Where a beneficiary does not own the property cf which he wishes to let a part for social ‘security benefit purposes the income which will be charged fc r | sub-letting rooms is assessed ad the actual rent received from the sub-tenant, plus 10s a week in the case of a single beneficiary, or £ 1 a week in the case of a married couple, less the total rent paid on the property. An illustration is where a beneficiary pays £2 10s a week for a six-roomed house and sub-lets three rooms at 15s a week each. The position, for a single person, would be that the total rent from sub-tenants would be £2 ss, plus IQs assessment fcr self, less the £2 10s rent, so that the amount charged as weekly income from rent would be ss. For a married couple, the amount works out a: 15s. Where a beneficiary owns his own home and lets part cf it, the chargeable income from rent is assessed as the gross rent received from the tenants less the actual outgoings paid on the whole property by way of mortgage interest. rates, insurance. repairs and maintenance. No allowance is made for depreciation or for principal repayments of mortgage. An example is of a beneficiary ( who lets three rooms of his house' for a week each, or as a fiat for £3 a week. He receives £156 gross rent in a year, but subtracts rates. £32 ss. insurance £4 15s. mortgage interest £5O. repairs £l7. a total of £lO4. so that the net rent charged as income would be £52 a year, or £1 a week. A beneficiary could thus recover the annual outgoings on his home from rent and use the balance cf rent towards mortgage principal repayments without calling on his benefit to any great extent.