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

poppy10_2

poppasmurf_bewdley wrote: »

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?

That's not what she said at all

Caz3121

From previous posts you are emigrating to Australia and your husband has gone on ahead for a few months....can you not just stay in your own property and have your husband help with your bills. Not sure why you are looking to rent elsewhere

Anubis_2

It doesn't make sense to me that someone can own a house, rent it out, keep the rent, move to a different property themselves, then expect to also get HB for the different property.....

I think if someone owns a house, they should remain there unless their life or the life of their child is in danger. They should certainly not be allowed to rent it out, and live in a diff property themselves claiming HB.

Your rent that you are receiving from renting your home out, will be counted as income, so it will affect your income support.

Then you may not receive HB unless your situation fits one of the categories that Big Auntie posted.

poppasmurf_bewdley

poppy10 wrote: »

That's not what she said at all

Yes it was, but she's now altered her first post and deleted much of what she said.

Boots888

I don't think it seems fair.

I know someone who moved in to look after her sick mother. The mother passed away and left the house to her 2 children. Friend (on sickness benefits herself as unable to work for some time) tried, with the help of welfare rights and Shelter to get rent for the sibling as he owned 50 per cent of the house and couldn't get it.

Then tried to get help with possible mortgage interest payments to buy sibling out and was advised by the Welfare Rights that the DWP had told em to get a mortgage and then they'd decide whether they qualified for any help. That if they didn't get the help, they'd have 3 months to sell the property before getting repossessed!!! Friend couldn't take the risk as was liable for the mother's estate as administrator and was obliged to get the best offer on the house. Went on to sell the property, took 2 years - the market crashed and ex council so although had a few offers the banks wouldn't lend cause it was made of, lets say - "different materials".

Had to lower the price by quite a bit but if they'd taken the advise from the DWP they would have lost a lot more by it being repossessed.

Terrible upheaval for my friend, it had been a family home for 35 years but was obliged to settle the estate and give sibling the 50% that was rightfully his but couldn't rely on help to cover housing costs to stay there

noin004

I have a similar question to the original post, but a slightly different situation. I have to move to a bigger house as I have 2 children who are currently sharing a bedroom and by law I have to separate them by the time my daughter turns 8. The house I own is in negative equity, so I cannot afford to sell it. Looking at rental prices locally, if I rent out my house I would get just enough each month to make the mortgage repayment. I work full time, and worked out that if I rented I would be entitled to a small amount of housing benefit but think this may be affected if I rent out the property that I own. Can anyone help?

HappyMJ

noin004 wrote: »

I have a similar question to the original post, but a slightly different situation. I have to move to a bigger house as I have 2 children who are currently sharing a bedroom and by law I have to separate them by the time my daughter turns 8. The house I own is in negative equity, so I cannot afford to sell it. Looking at rental prices locally, if I rent out my house I would get just enough each month to make the mortgage repayment. I work full time, and worked out that if I rented I would be entitled to a small amount of housing benefit but think this may be affected if I rent out the property that I own. Can anyone help?

There is no law saying you have to separate children when they reach 8 years of age.

If you did rent the property out and if the mortgage company allowed you to which is unlikely you have to use the rent you receive towards paying the rent on you larger place rather than using it towards paying the mortgage. You may be able to offset some of the interest charges but not much else so you would be much worse off.

noin004

I have been told by social services that I have to separate the children as it is 1 boy & 1 girl sharing a room. The rent on a bigger property would be more than I am currently paying for a mortgage. If I sold the house, I would be able to claim enough HB to cover the difference of what I am currently paying on a mortgage & what rent would be, but as I said I am in negative equity, so selling isnt really an option.

HappyMJ

noin004 wrote: »

I have been told by social services that I have to separate the children as it is 1 boy & 1 girl sharing a room. The rent on a bigger property would be more than I am currently paying for a mortgage. If I sold the house, I would be able to claim enough HB to cover the difference of what I am currently paying on a mortgage & what rent would be, but as I said I am in negative equity, so selling isnt really an option.

Boys and girls can share at any age. The advice you were given was probably to think about separating them so they each have their own space as they are growing up. There is no law forcing you to.

If you sold the property then you could claim full HB rather than having the rent receieved reduce your HB claim. It is an option to sell and the easiest for the council to understand. The house can only be exempt as listed above for up to 6 months while it is on the market. You do not want to have tenants in the property whilst you are trying to sell it. It will be worth more sold with vacant possession and having to evict tenants at the end of a 6 month tenancy it is not fair on the tenants and will scare a lot of buyers off as some tenants will refuse to leave.

chigley

If you own a property that you do not live in, then it will be classed as capital, and if you have almost paid off your mortgage, then the capital in the property is almost bound to be over £16000, therefore you will not be able to claim housing benefit for another property.