housing benefit - help for my nan

lauraloo29

hello,
I am posting this for my nan. she has just moved out of her 2 bed house and into a ground floor flat as she can no longer cope with the stairs and the size of the house (being 82 years old).
she is currently claiming housing benefit and help with her council tax for her privately rented ground floor flat. she wishes to rent out her house until she decides to sell it. she will be renting it to a relative but will still be doing it properly with a tenancy agreement contract.
she is now worried that her housing benefit claim will be taken off her once she starts to receive rent from the house.
I am trying my best to help her as she is starting to become very stressed with the situation.
if anyone can help I would be very grateful.
many thanks, Laura.

rogerblack

She would not normally be able to claim HB at all if she owns another property.
Has the council been informed that she does?

poppasmurf_bewdley

Agree with the above. As a property owner, she is not entitled to receive housing benefit, so if she is currently receiving it she could well be committing an offence.

She needs to be talking to the council urgently.

merlin68

She could also loose pension credit with the rental income.

xylophone

https://www.gov.uk/renting-out-a-property/landlord-responsibilities

The rent will be income and is taxable.

https://www.gov.uk/renting-out-a-property/paying-tax

Your grandmother may not be entitled to the benefits she is claiming and should advise the council of the situation without delay.

Topcat1982

Best thing would be to sell and buy a ground floor flat.

I think your Gran may be confused she shouldn't be receiving hb while she owns another property. Be careful she may have an overpayment

wiltsguy_2

I agree, get your nan to sell as to claim HB whilst owning your own home and receiving an income for it.....really??? thats a buy to let dream come true!

Caz3121

was her own house up for sale? the property can be ignored for capital calculations for 26 weeks if up for sale but, if not, as others have said, she should not be entitled to HB assuming the property is worth over £16k
Hopefully the rental from the property after tax, expenses etc will cover her rent and other losses, if not, it may be best to sell now and live off the capital
Also worth checking up on deprivation of capital and notional capital in case there are plans to transfer the house to someone else etc to get benefits,

rogerblack

Caz3121 wrote: »

was her own house up for sale? the property can be ignored for capital calculations for 26 weeks if up for sale

she wishes to rent out her house until she decides to sell it

Would seem clear it's off the market now anyway.

Caz3121

rogerblack wrote: »

Would seem clear it's off the market now anyway.

think you are right but it was the only reason I could think that she would legitimately be entitled to housing and council tax benefit unless the ownership of the property had never been declared!

NYM

If a person claims Housing Benefit, do they not have to state if they have other property or it is just assumed that they don't have their own property ?