Buying a house on benefits

bossman50

Hi guys,
I am disabled and my wife is my full time carer. As such we both receive the appropriate benefits. We own our own home.
We are looking to sell our house and use the money to buy a new place in another village. Same council.
We have no savings so all the moving costs, purchase will come out of the house sale.
Do we have to notify the benefits people what we are doing beyond notifying them of change of address? Do we need to show details of house sale and purchase etc ?
Thanks

calcotti

What do you mean by ‘appropriate benefits’. The answer makes a big difference to the answer to your question. Some benefits are means tested and some are not.

bossman50

Pip, ESA, carers, income support, child benefit

TELLIT01

ESA Conts or IR?  I ask because if you are downsizing and will have capital remaining after the purchase of the new property it may affect entitlement to IR benefit.

calcotti

PIP, Carer’s Allowance and Child Benefit are not means tested and are unaffected.
If you are getting both ESA and Income Support I infer that the ESA must be contribution based and therefore also not means tested and therefore unaffected.
Income Support is means tested and if you have more than £16,000 of capital you are excluded from receiving it. However proceeds from the sale of a property which are to be used to purchase a new property can be disregarded for six months or more. You will need to keep Income Support informed and provide evidence to them if you have money in your bank accounts. 

If however the proceeds from the sale go direct to your solicitor and are paid out directly by them to fund the purchase you will never have access to the money in which case It probably doesn’t matter. There are other posters who have inside knowledge of DWP who may be able to clarify this.

if there are surplus funds from the sale and purchase these will of course need to be disclosed. Over £16,000 and means tested benefit will not be payable. Below £16,000 but over £6,000 there will be a reduction in benefit (possibly to nil depending on the amount of benefit payable in the first place). Capital below £6,000 is ignored.

bossman50

We plan on spending all of the sale money on another house so wont have any savings after selling and buying a new house.
Just wondering if we would still need to inform income support etc what weve done with proof

calcotti

bossman50 said:

We plan on spending all of the sale money on another house so wont have any savings after selling and buying a new house.
Just wondering if we would still need to inform income support etc what weve done with proof

As I indicated in my previous post, my instinct is that if the money is only ever with your solicitor it may not be necssary but others may be able to confirm.
if any money passes through your own accounts you should keep DWP informed.

dippy3103

You will have to tell them that you have moved anyway. I would be ready to provide your completion statements and moving costs. 

bossman50

Thanks.
Im assuming its ok to move and the dwp etc dont frown upon it?

calcotti

bossman50 said:

Thanks.
Im assuming its ok to move and the dwp etc dont frown upon it?

People have to, or choose to, move for all sorts of reasons. It isn't 'frowned' on.