Will rental income affect my JSA?

Steve_Roberts_3

Have recently been made redundant, and have made an application for JSA.

Although I now live in Bristol, I have a second property in Newcastle (the former family home) which I am attempting to rent out. No one is in the property at the moment, so I currently have no income from the home.

BUT...if I do get a tenant, how will that affect my claim for JSA? Can I put the rental income in my wife's name and still legally claim the JSA?

After agency fees the rental income may be about £75 a week, if I can find a tenant.

FTR, when I made a claim for JSA, I did mention the second property, and that it was vacant.

Thank you!

p00hsticks

I'm not an expert, but my understanding is that if you've been paying Class 1 NI contributions over the last couple of years then for the first six months you'll get 'contribution-based' JSA, which is a fixed amount that you are automatically entitled to.

If you're still unemployed after six months, then you will be assessed to see if your eligible for income based JSA. This will only be paid if your income is low enough, so I think that any rental income would count. And I also believe that it's the household income that is assessed, so I suspect that (assuming you live together) it wouldn't make any difference whether you or your partner received it.....

cifpower

If you get contribution based JSA I believe the rental income will not affect you

bunny999

If you get JSA (contribution based) it will not be affected by the rental income. If you claim any means tested benefit including JSA (income based)then it will be affected by the rental income. There is no point in putting it in your wife's name as your joint income will be taken into account.

MCGONIS

If you own two properties, then you will not get Jobseeker's Allowance. Only a few exceptions to this rule such as you own a second home to prevent overcrowding. Probably not what yoyu want to hear. But really if you have two properties, and only use one, then the governments view is, sell the other and live off the profit. Please don't shoot the messenger!

Aysha

I have rented out my property as I can no longer afford to live there, the rental income covers the mortgage, secured loan and an unsecured loan payment, leaving me with no money. I have just applied for means tested jsa, will I get it? as I have declared my property to them?

Help!!!

Oldernotwiser

MCGONIS wrote: »

If you own two properties, then you will not get Jobseeker's Allowance. Only a few exceptions to this rule such as you own a second home to prevent overcrowding. Probably not what yoyu want to hear. But really if you have two properties, and only use one, then the governments view is, sell the other and live off the profit. Please don't shoot the messenger!

This is only the case for means tested JSA. As the previous 2 posters have said, contributions based JSA is unaffected by other capital and income.

JC9297

Aysha wrote: »

I have rented out my property as I can no longer afford to live there, the rental income covers the mortgage, secured loan and an unsecured loan payment, leaving me with no money. I have just applied for means tested jsa, will I get it? as I have declared my property to them?

Help!!!

It is income, what you choose to spend it on and what debts you have are not taken into account.

Aysha

but I'm sure I read somewhere if the income/assets you have fall under £16000, this makes a difference? or is this just for contribution based?
Also if they don't care what the rental income is used for, why were there questions on my mortgage and secured debt?

Oldernotwiser

Aysha wrote: »

but I'm sure I read somewhere if the income/assets you have fall under £16000, this makes a difference? or is this just for contribution based?
Also if they don't care what the rental income is used for, why were there questions on my mortgage and secured debt?

Contributions based JSA isn't affected by any assets. Means tested benefits stop when capital/savings are over 16,000 and are reduced on a sliding scale when between 6,000 and 16,000. Below 6,000 there's no effect on benefits.

Aysha

so then would the rental income count as capital?
Because I do know of people who own a house and claim JSA, sorry if I sound a bit stupid, but have trawled the internet, rang the jobseekers line and still can't seem to get a straight answer