Can I rent my house out if on benefits?

HappyMJ

You have a debt-free date in 2032. That's too long. No offence to you but I'd be declaring BR waiting 6 years til 2017 and have no debt at all and a clear credit file and at no cost to you. If you are on benefits then charities will help pay for your BR fees.

HappyMJ

ruggedtoast wrote: »

No, you cant rent your house out and claim income support as well, as the DSS will consider it to be income.

Errrr..yes you can. And there is no such thing as the DSS. The HMRC will consider it income and tax it as such. The DWP will consider it income and reduce IS accordingly. There is nothing actually stopping someone from renting a house out and claiming IS.

Werdnal

It always amazes me that people think that they can still think they can sit back and still get all their benefits when they have an alternative source of income. If OP was earning a wage, they wouldn't get their full benefits, so why should rental income not be counted the same way? You have to declare it for tax and let the relevant agencies decide how it affects any benefit entitlement.

So in answer to your question, you can let your house (subject to mortgage approval and all the other legal obligations of becoming a LL, obviously but that is a whole other thread!), but there may (and probably will be) an effect on your benefit entitlement!

palomapicasso

I have spoken to CCCS about going down the BR route but they have advised against it due to owning my flat. I am on a DMP and that is the date they anticipate with what I am paying. As it has gone down drastically due to the decrease in the SMI help people are entitled to.

palomapicasso

Werdnal wrote: »

It always amazes me that people think that they can still think they can sit back and still get all their benefits when they have an alternative source of income. If OP was earning a wage, they wouldn't get their full benefits, so why should rental income not be counted the same way? You have to declare it for tax and let the relevant agencies decide how it affects any benefit entitlement.


Do you honestly believe that EVERYONE sits back and gets all their benefits for the fun of it? Do you think I enjoy being dependent on the state? I have never felt so demoralised since being made redundant while I was on maternity leave - the company went into voluntary liquidation! What should have been the happiest time of my life was the worse. I am slowly getting back my confidence and as soon as my child is of school age I will go back to work but until then I am not leaving my child in the care of someone else, who I will have to pay, when it was my choice to continue with my pregnancy, when I found out I was pregnant. I have paid taxes all of my life until this happened. You try living off £46 per month - with a child after I have paid my bills and debts! Try and vent your anger out at people who are abusing the system and who have done for all of their lives, not people like I who have ended up in a dreadful mess due to circumstances outwith our control.

brit1234

palomapicasso wrote: »

Sarcasm is the lowest form of wit!

Full quote:
"Sarcasm is the lowest form of wit but also the the cleverest."

Oscar Wilde

poppysarah

palomapicasso wrote: »

I have had my house up for sale. 3 other people have had For Sale signs up for over 1 year now. Nothing is moving. Not one person has even contacted me about it.

Ask the estate agent why

ruggedtoast

palomapicasso wrote: »

Werdnal wrote: »

It always amazes me that people think that they can still think they can sit back and still get all their benefits when they have an alternative source of income. If OP was earning a wage, they wouldn't get their full benefits, so why should rental income not be counted the same way? You have to declare it for tax and let the relevant agencies decide how it affects any benefit entitlement.


Do you honestly believe that EVERYONE sits back and gets all their benefits for the fun of it? Do you think I enjoy being dependent on the state? I have never felt so demoralised since being made redundant while I was on maternity leave - the company went into voluntary liquidation! What should have been the happiest time of my life was the worse. I am slowly getting back my confidence and as soon as my child is of school age I will go back to work but until then I am not leaving my child in the care of someone else, who I will have to pay, when it was my choice to continue with my pregnancy, when I found out I was pregnant. I have paid taxes all of my life until this happened. You try living off £46 per month - with a child after I have paid my bills and debts! Try and vent your anger out at people who are abusing the system and who have done for all of their lives, not people like I who have ended up in a dreadful mess due to circumstances outwith our control.

It would help if your post was a bit clearer. Are you claiming that you are having to use your income support to cover part of your mortgage payment and now only have £46 a month to live on?

How much equity do you have, what is your mortgage, what would your rental income be?

ic

TBH in the situation you are in, I doubt your mortgage lender would give you consent to let. If they do, its an expensive process letting out.

My partner let their flat out recently after moving in with me - the costs were: £100 application fee for consent to let, £60 for energy performance certificate (you may already have this if you've already tried to sell), £60 gas safety check + certificate, £120 electrical safety check + certificate, £300 to bring the electrics up to an acceptable safe standard. In the end he managed to find a tenant himself - if the agent had found the tenant, the first months rent would have gone to cover their fees, plus a further 10% of the monthly income thereafter. Landlord insurance replaces the buildings insurance at £11 per month too.

Next year the gas safety check and consent to let will be charged again. Also my partner now has to declare the income he makes over and above costs and the mortgage interest - so about £300 a month.

Renting is not as cheap or as easy as the TV makes out - my partner only managed to get consent to let after making a payment of £5000 off the mortgage to bring the amount he owed down. From what you say, you don't have the luxury of this option.

silvercar

palomapicasso wrote: »

I have never felt so demoralised since being made redundant while I was on maternity leave - the company went into voluntary liquidation! What should have been the happiest time of my life was the worse. I am slowly getting back my confidence and as soon as my child is of school age I will go back to work but until then I am not leaving my child in the care of someone else, who I will have to pay, when it was my choice to continue with my pregnancy, when I found out I was pregnant. I have paid taxes all of my life until this happened. You try living off £46 per month - with a child after I have paid my bills and debts! Try and vent your anger out at people who are abusing the system and who have done for all of their lives, not people like I who have ended up in a dreadful mess due to circumstances outwith our control.

If you can't afford to live on benefits the answer is to work and use some childcare. With your little one in nursery every afternoon, you could get morning childcare (70% of the cost of which would be paid for by childcare tax credits) and find a job that will let you finish by 3pm each day.

Managing on such little money is clearly not healthy for you and by extension for your little one.