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Housing Benefit - Previous Owner rule

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Hi,

I'm hoping someone can help. In December 2006 my mum sold her house to a company who then rented it back to her. She wasn't at the point of being reposessed, but she was struggling as she was newly single and it made things more comfortable. She lives alone and was working at the time. It's now just over 4 years on and my mum has retired - she's 60 and was advised by the doctor to retire due to poor health.

She has applied for housing benefit but the application has been declined because of the previous owner rule in that she has owned the house she is claiming housing benefit for within the last 5 years. She has been advised that she has to wait until December this year in order to claim housing benefit.

I understand the previous owner rule and the reasons it's in place, but is there an arguement here that her circumstances have changed due to unforseen circumstances? Her income is £548 and her rent alone is £380.

Ironically she wants to move from the property but can't because her income is too low to apply to be a private tennent.

Please help!

Comments

  • real1314
    real1314 Posts: 4,432 Forumite
    easyxtiger wrote: »
    Hi,

    I'm hoping someone can help. In December 2006 my mum sold her house to a company who then rented it back to her. She wasn't at the point of being reposessed, but she was struggling as she was newly single and it made things more comfortable. She lives alone and was working at the time. It's now just over 4 years on and my mum has retired - she's 60 and was advised by the doctor to retire due to poor health.

    She has applied for housing benefit but the application has been declined because of the previous owner rule in that she has owned the house she is claiming housing benefit for within the last 5 years. She has been advised that she has to wait until December this year in order to claim housing benefit.

    I understand the previous owner rule and the reasons it's in place, but is there an arguement here that her circumstances have changed due to unforseen circumstances? Her income is £548 and her rent alone is £380.

    Ironically she wants to move from the property but can't because her income is too low to apply to be a private tennent.

    Please help!

    To get HB in these circumstances, what you haev to be able to demonstrate is that you would have lost the home if you hadnt sold it
  • fluffymovie
    fluffymovie Posts: 1,417 Forumite
    Part of the Furniture Combo Breaker
    This is happening more and more and the dwp published a circular in about 2009 which gives more detail.

    If you google A5/2009 HB circular, this may help
    I currently manage a Housing Benefit service and have been working in Housing / council tax benefit (as was) since 2001.

    All views expressed in my posts are my own opinions and do not necessarily reflect those of my employer.
  • Oldernotwiser
    Oldernotwiser Posts: 37,425 Forumite
    Her income is too low now to allow her to rent privately but she would get HB in another property. As long as she can find a landlord who will accept benefits, There's no reason why she couldn't plan to move.
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