Buying a home for family member - ? Issues

Hi,
Hope you are able to advise.

I receive a small IHR pension, ESA (CB) and PIP and own my own home.
I received inheritance money from a relative.

I would like to use this inheritance money to purchase a home for a close relative. They are renting privately and receive ESA (IB), HB and PIP. The reasons are a) to provide them with home security and b) they would no longer require housing benefit... so ? Save the govt money.

It would appear this is not a straightforward task. Suggested problems for me seem to be
a) need to become a registered landlord
b) would I be deemed to be running a business and thus deemed fit for work (which I definitely am not!)
c) as a 2nd homeowner there would be tax implications for me... even if charging no/minimal rent

Problems for the relative if they did not require HB are ???
Everything about this scenario is a genuine wish to help my relative. I
am in the process of seeking legal advice too.

Surely there has to be a reasonable sensible process to do this?
Thanking you in advance.

Thank you Gary

(1)You do not have to become a registered landlord
(2) Not deemed as running a business, however, any income you receive from rent would be deducted from any means tested benefits
(3) There are tax implications yes, you would have to submit self tax returns, however, there are allowances for so much rent you can receive before it becomes taxable, your PIP is a non taxable benefit, so it depends on how much your income would be after pension, ESA and rental income
(4) a relative can live in the property and claim housing benefit as long as YOU do not live in the property as well.

There are ways and means around owning property and not falling foul of benefit laws and protecting your assets from future care costs, by holding property in trust.
If you are disabled person and eligible for Personal Independence Payments at the higher rate, then you should be able to start a disabled persons trust and transfer any capital and assets into that trust. This is a complex area of law though and needs professional advice, it also costs around £1000 for a solicitor to set up and you would need two trustees to manage the trust for you as it is not something that you can do yourself as the beneficiary.