Charges for accommodation

Where a local authority requires those accommodated under its homelessness duties to pay reasonable charges, [1] this will apply to accommodation provided by the local authority, or that provided by another landlord but which is paid for by the local authority. [2]

In deciding what is reasonable, the local authority should take into account what the applicant can afford to pay in the longer term. If an applicant is being asked to pay for accommodation provided by or paid for by the local authority then the applicant should be informed in advance of the cost of the accommodation. They should be assisted when applying for housing benefit to cover the cost of the accommodation. The local authority should take account of, and advise on, the likely level of Housing Benefit when considering charges. [3]

A local authority adopting a blanket policy, such as charging all homeless persons the full cost or a fixed charge for accommodation, or refusing to consider the individual charge in each case, would be subject to challenge. [4] In an English case it was held that a local authority may exercise it's discretion by charging a nil or 'peppercorn' rent. [5]