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Inheritance while a council tenant

I’m a single mother who works but is topped up by universal credit. I also live in a council house.
I recently Discovered I’ve been left an inheritance, which isn’t near enough to Buy a home or buy my Council house even with the discount, but it is still a sizeable amount of money. 
While I’m waiting for solicitors etc, I’ve been weighing up my options. I’d like to buy a property, far away as that’s all I can afford, to rent out and have a long term income. 
My question is whether I am allowed to keep my council home (secure tenancy) even though I Would then own a home elsewhere. (I would of course come off universal credit before anybody assumes otherwise, a quick search has shown that the rental income would match what I was getting from universal - perfect) I’m just worried that the council will tell me I have to leave my council home if I become a homeowner, but I really can’t move out Far away from my disabled mother.

I queried this all with my housing officer but he didn’t really give much of an answer other than for me to get legal advice?!
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Comments

  • theartfullodger
    theartfullodger Posts: 15,571 Forumite
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    edited 9 September 2020 at 9:39AM
    Run gov.uk benefits calculator to see what benefits your are still entitled to.  Some aren't affected by savings or inheritance.

    Artful: Money in bank, in receipt of 6 benefits, all legitimate (old).  Not fair I know.

    Good luck, some good news for you!
  • davidmcn
    davidmcn Posts: 23,596 Forumite
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    edited 8 September 2020 at 11:03PM
    No, a secure tenancy isn't adversely affected by you becoming the owner of other property.
    Though I suspect others would query whether becoming a landlord is really as attractive an investment choice as you seem to think - what happens when the rental income dries up for months on end (as has happened to many landlords this year of course), or expensive repairs need to be done? Not so bad if you've got significant other income or capital to fall back on, but it doesn't sound like you do.
  • AdrianC
    AdrianC Posts: 42,189 Forumite
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    No, you cannot lose a council tenancy because you have come into assets.

    If it's enough to buy, just not in your current area, and you don't want to move away from your mother... then can't you move with your mother...?

    You really need to think if starting a residential lettings business is the best way to invest your inherited windfall.
    Can you give us an indication of the amount, and what/where you were thinking of buying?
    What the rental income would be (presumably, less the management fee, since you won't be self-managing), what you think the outgoings would be, how you plan on covering large bills, bad debts and voids if they come simultaneously...?

    Honestly, I think the answer is that you'll be best asking over here -> https://forums.moneysavingexpert.com/categories/savings-investments
  • gomer
    gomer Posts: 1,473 Forumite
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    edited 9 September 2020 at 9:14AM
    So if you own a property you can still have social housing too? That doesn't seem right.
  • davidmcn
    davidmcn Posts: 23,596 Forumite
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    gomer said:
    So if you own a property you can still have social housing too? That doesn't seem right.
    The whole point of secure tenancies are that they're secure, you don't just get kicked out of your home whenever you fail means testing. Obviously owning other property would affect your eligibility to be provided with social housing in the first place.
  • unkle
    unkle Posts: 338 Forumite
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    gomer said:
    So if you own a property you can still have social housing too? That doesn't seem right.
    Check your lease, as many councils will not allow you to own another property whilst being a council tenant.
    As an example;
    https://www.landlordtoday.co.uk/breaking-news/2020/1/council-tenant-who-owns-three-btl-properties-ordered-to-pay-almost-90k
  • gomer
    gomer Posts: 1,473 Forumite
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    edited 9 September 2020 at 9:26AM
    unkle said:
    gomer said:
    So if you own a property you can still have social housing too? That doesn't seem right.
    Check your lease, as many councils will not allow you to own another property whilst being a council tenant.
    As an example;
    https://www.landlordtoday.co.uk/breaking-news/2020/1/council-tenant-who-owns-three-btl-properties-ordered-to-pay-almost-90k
    Precisely. Which is why the blanket advice here seems a little ill researched.
  • gomer
    gomer Posts: 1,473 Forumite
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    edited 9 September 2020 at 9:29AM
    davidmcn said:
    gomer said:
    So if you own a property you can still have social housing too? That doesn't seem right.
    The whole point of secure tenancies are that they're secure, you don't just get kicked out of your home whenever you fail means testing. Obviously owning other property would affect your eligibility to be provided with social housing in the first place.
    You might want to research that with a few local authorities. It's a change in circumstances.
  • AdrianC
    AdrianC Posts: 42,189 Forumite
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    edited 9 September 2020 at 9:35AM
    gomer said:
    So if you own a property you can still have social housing too? That doesn't seem right.
    You certainly won't get to the top of the housing list, so you won't be allocated a council house.

    But you'll note the wording I used...
    AdrianC said:
    No, you cannot lose a council tenancy because you have come into assets.
    I didn't mention another property. Deliberately.

    What I can't find anywhere is what the tenant in that article was actually charged with - all the coverage uses very similar wording, and seems to be a rehash of the council's press release - but it would appear to be fraud in relation to the RtB application.
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    edited 9 September 2020 at 9:53AM
    mmfmm said:
    I’m a single mother who works but is topped up by universal credit. I also live in a council house.
    I recently Discovered I’ve been left an inheritance, which isn’t near enough to Buy a home or buy my Council house even with the discount, but it is still a sizeable amount of money. 
    While I’m waiting for solicitors etc, I’ve been weighing up my options. I’d like to buy a property, far away as that’s all I can afford, to rent out and have a long term income. 
    My question is whether I am allowed to keep my council home (secure tenancy) even though I Would then own a home elsewhere. (I would of course come off universal credit before anybody assumes otherwise, a quick search has shown that the rental income would match what I was getting from universal - perfect) I’m just worried that the council will tell me I have to leave my council home if I become a homeowner, but I really can’t move out Far away from my disabled mother.

    I queried this all with my housing officer but he didn’t really give much of an answer other than for me to get legal advice?!

    As its not much money, you'll be remote and have to pay an agent, and by the sound of it woudl be struggling to pay any major bills, lets say new boiler, roof, house damaged, tenant  doesn't pay rent and cant be evicted for the next 18 months or so , this is likely a  bad idea .
    And there's a whole host of costs that go along with being a property owner you likely haven't encountered yet as you aren't currently paying them. And being remote, they will be higher.
    Leaking tap in your council house, council fixes.
    Leaking tap in your own house, go to B&Q new washer or cartridge, fix yourself or friend does, £1-£20.
    Leaking tap in a house miles away from you, plumber call out plus agency fees for managing, £100.

    Can you post your calculations for outgoings, incomings, tax and state what you think your income will be.
     
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