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

MissMoneypenny

BigAunty wrote: »

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.

I thought that was only if they are selling the property? Even then, it is time limited. Giving a tenant a tenancy agreement for the 6 months minimum, is not trying to sell the house. Tenants are protected by the law of quiet enjoyment and do not have to show buyers around their home.

Plus won't the income from the rent take them over the threshold for claiming LHA (rent benefits) and IS and reduce the Tax Credits?

Having a property that they let out but don't live in, won't affect Tax Credits capital limits as Tax Credits don't have capital limits; but when Tax Credits stop and then become part of Universal Credit, this anomaly of no capital limit for tax credits, will be removed. Universal Credit will replace income based welfare payments and the equity in the let house will mean they will exceed the Universal Credit capital limit of 16k.

If you live in the house ManicMum, then the house equity won't be counted as capital for benefit calculations. I assume you could then claim SMI (mortgage interest help at a fixed rate) plus other income based welfare payments as long as your capital doesn't exceed 16k.

HappyMJ

ManicMum wrote: »

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?

That's why I was clarifying whether it was offset or not. You do not have to increase a mortgage but the equity in the property counts as an asset so you have to pay your own rent by using the rent you get and by borrowing money against your asset to pay the rest. You have the option of course of selling your asset and turning it into cash.

BigAunty

Here is the HB regulations - the OP will need to check if they are still current. To me, it looks like the OP doesn't qualify for housing benefit as I can't identify any exceptions from the information given so it will be classed as capital. She should still double-check, anyhow.

Property you own but do not occupy [HB Sch 6, HB(SPC) Sch 6; CTB Sch 5, CTB(SPC) Sch 4]

The value of this property is counted as capital but you may be able to get HB/CTB even if the value of the property means that your savings are more than £16,000. This is because the value of the property may be ignored when your savings are worked out, in certain circumstances.
If the property is occupied by an elderly or disabled relative as their home, its value is not taken into account for as long as it is so occupied.
If you have recently acquired the property and you intend to occupy it as your home, its value may not be counted for 26 weeks, or for a longer period if reasonable, from the date you acquired it.
If you are trying to sell the property, its value may not be counted for the first 26 weeks after you start doing this. It may not be counted for longer than this if you are finding it difficult to sell the property.
If you are carrying out essential repairs or alterations so that you can live in the property, its value may not be counted for a period of 26 weeks from the date you first arranged for repairs to be carried out. It may not be counted for longer than this if you are finding it difficult to finish the work.
If you are taking legal action so that you can live in the property, its value may not be counted for the first 26 weeks after you start doing this. It may not be counted for longer than this if legal action is continuing and you cannot live in the property.
If you have left the property after the breakdown of a relationship, and it is occupied by your former partner, its value may not be counted for the first 26 weeks after you left. If the property is occupied by your former partner and they are a lone parent, the property will not be counted for as long as it continues to be so occupied.

http://www.dwp.gov.uk/publications/specialist-guides/technical-guidance/rr2-a-guide-to-housing-benefit/working-it-out/income-and-capital/

skintandscared_2

ManicMum wrote: »

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.

Because you can't plough all your disposable income into an asset which you own, giving you a sizeable asset, then get the taxpayer to pick up your bills for you! How does that make you any different to those who "p**s money away and then expect council to pay their rent"??! There are many hardworking taxpayers who've never claimed a penny in benefits but can't afford to buy a house! Why should we indirectly pay for yours?!

SkyeKnight

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

But owning a property doesn't exclude you from income support only if it is your main residence (which this one isn't). Otherwise the equity in it counts as savings - there are exceptions as listed by BigAunty so maybe one of those apply. Otherwise you don't qualify for income support.

dealer_wins

Its threads like this that make me realise what a joke benefits have become in this country.

heathcote123

ManicMum wrote: »

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?

.

Well no offence, but you're probably not quite as prudent or hard working as you think, if you need housing benefit.

I don't think anyone with a paid off house as an asset will be 'entitled' to much in the way of housing benefits. At least, I really hope not.

It's not really any different to saying 'I have 100k in the bank, Can I get housing benefit?'

FBaby

If you've been so prudent and hard working that it has allowed you to pay your mortgage almost outright, then surely you must have been earning quite a decent salary. If you have, surely you will be better off continuing to work and getting some help with childcare costs, either via tax credits, or claiming childcare vouchers.

Or is it a case that you gave up your job through choice, and now want to be able to only work a few hours to enjoy plenty of quality time with the kids, building up equity in your house whilst tax payers pay for your lifestyle?

poppasmurf_bewdley

If I get this right, you own a house which you rent out. And you want to move to a more expensive area of the country and rent out a property there. But the rent you get for your house doesn't match the rent you'll have to pay in the area you want to move to. So you want to Taxpayer to make up the difference?

Wonder if I can let out my house and get the taxpayer to pay for me to rent a flat next to my sister in Sandbanks?

poppy10_2

FBaby wrote: »

If you've been so prudent and hard working that it has allowed you to pay your mortgage almost outright, then surely you must have been earning quite a decent salary.

Not quite. From other posts it looks like she made a meaty profit from selling her BTL property last year.

Can't go wrong with bricks and mortar. :money: