Can you get housing benefit if your own property is rented out?

ManicMum

Hello

as above. If I have tenants in my house, and need to rent somewhere myself, can I get housing benefit if classed as single parent and in receipt of income support? This is to do with a complicated but legitimate situation about to come about in my life. Also, I know you can do up to 16 hrs a week (I think) and claim income support. I am not going to be working, due to no one to look after the children, but what is the equivalent in terms of rental income you can earn?

Thank you.

HappyMJ

Maybe. It depends on the equity you have in the property and what income you derive from it. You should be using the rent you receive to rent somewhere else. Housing benefit will help with the difference.

Sparklebabey

ManicMum wrote: »

. Also, I know you can do up to 16 hrs a week (I think) and claim income support.

You can work up to 16 hours but can only keep £20 of it...the rest gets deducted £ for £.

Not sure you can have a rental equal though you will have to declare the rental income.

ManicMum

HappyMJ wrote: »

Maybe. It depends on the equity you have in the property and what income you derive from it. You should be using the rent you receive to rent somewhere else. Housing benefit will help with the difference.

thanks. I have a lot of equity - about 95%. I can use the rent to rent myself but just wondered if they will remove the income support as treated as income? Also, the rent I get for the house will not be enough to rent in a different part of the country I am thinking of going to.

SkyeKnight

ManicMum wrote: »

thanks. I have a lot of equity - about 95%. I can use the rent to rent myself but just wondered if they will remove the income support as treated as income? Also, the rent I get for the house will not be enough to rent in a different part of the country I am thinking of going to.

I guess you won't qualify for income support since you must have equity over £16k in your house (similarly Housing Benefit is means tested), so you won't need to worry about how any of the income is treated.

I believe if you are actively selling the house there are some ways around this, though obviously once the house is sold you won't qualify for anything once again as you will have savings over £16k.

ManicMum

Owning a property doesn't exclude you from income support. I don't know the rules for owning a property on an investment basis though.

Only thing that concerns me is that as my mortgage is offset, would they say I should withdraw finances up to the originally agreed mortgage? If so, that seems unfair to put someone in greater debt when people on a regular mortgage wouldn't or couldn't do that.

thanks

HappyMJ

ManicMum wrote: »

Owning a property doesn't exclude you from income support. I don't know the rules for owning a property on an investment basis though.

Only thing that concerns me is that as my mortgage is offset, would they say I should withdraw finances up to the originally agreed mortgage? If so, that seems unfair to put someone in greater debt when people on a regular mortgage wouldn't or couldn't do that.

thanks

No but receiving rent reduces the income support.

Your available assets are too high to claim housing benefit and you should be using the rent you get to pay the rent in the house you are moving to.

When you say offset do you have the savings in a savings account? They count as cash assets and disqualify you from many means tested benefits.

Might sound unfair to spend your overpayments/offset savings balance but that's the rules...sorry.

heathcote123

ManicMum wrote: »

Hello

as above. If I have tenants in my house, and need to rent somewhere myself, can I get housing benefit if classed as single parent and in receipt of income support? This is to do with a complicated but legitimate situation about to come about in my life. Also, I know you can do up to 16 hrs a week (I think) and claim income support. I am not going to be working, due to no one to look after the children, but what is the equivalent in terms of rental income you can earn?

Thank you.

So you practically own a whole house, and you want the taxpayer to pay your rent?

BigAunty

There are HB regulations that are published online that cover the instances when someone can qualify for Housing Benefit when they own but do not occupy a property. See if you can find them as they detail who is eligible, plus how capital is calculated.

ManicMum

Er, excuse me judgement makers. I may own a house almost - so what? That is due to prudence and hard work. Equally why should I pay rent of those who p**s money away and then expect council to pay their rent. You can't eat a house, so why should I be chastised for asking about benefits just because I have a roof over my head?

No, savings are not held in offset accounts. I have a low mortgage as have paid it down over the years through being good with money.

I am trying to find out what I am entitled to legitimately. Plus trying to work out what is best for myself and my 3 children.

Thank you to those people who are being helpful.

ManicMum

MJ - I'm not sure you're right. If a balance is at a certain level, I am not sure they can force you to increase your mortgage. Otherwise, why not make people re-mortgage to give them some extra capital? Do you work in this field and know for sure?