Renting out and universal credit

RezJila

Hi there, 

Does owning a property mean I cannot claim universal credit, or would I still be getting full universal credit if I rent out my property? 

housebuyer143

RezJila said:

Hi there, 

Does owning a property mean I cannot claim universal credit, or would I still be getting full universal credit if I rent out my property? 

Rental income is counted as income for you, so you will need to declare it and it will likely affect your benefits.

marcia_

RezJila said:

Hi there, 

Does owning a property mean I cannot claim universal credit, or would I still be getting full universal credit if I rent out my property? 

 If it's a property you do not live in then quite probably you won't be able to claim.

HillStreetBlues

Normally having a second property that you do not live in is classed as capital, so unlikely you can claim UC.

Would need more details , is the second property for sale? what is the equity in it, is the rental set up as a business?

calcotti

housebuyer143 said:

RezJila said:

Hi there, 

Does owning a property mean I cannot claim universal credit, or would I still be getting full universal credit if I rent out my property? 

Rental income is counted as income for you, so you will need to declare it and it will likely affect your benefits.

That is incorrect. Rent received is treated as capital, not income.

RezJila said:

Does owning a property mean I cannot claim universal credit, or would I still be getting full universal credit if I rent out my property? 

As Hill StreetBlues says

HillStreetBlues said:

Normally having a second property that you do not live in is classed as capital, so unlikely you can claim UC.
Would need more details , is the second property for sale? what is the equity in it, is the rental set up as a business?

A second property is capital so if worth more than £16,000 you are excluded from UC unless a disregard applies. The most likely disregard is if the property is on the market but there are a few others. Is the property lived in my relatives, if so who are they?

RezJila

calcotti said:

housebuyer143 said:

RezJila said:

Hi there, 

Does owning a property mean I cannot claim universal credit, or would I still be getting full universal credit if I rent out my property? 

Rental income is counted as income for you, so you will need to declare it and it will likely affect your benefits.

That is incorrect. Rent received is treated as capital, not income.

RezJila said:

Does owning a property mean I cannot claim universal credit, or would I still be getting full universal credit if I rent out my property? 

As Hill StreetBlues says

HillStreetBlues said:

Normally having a second property that you do not live in is classed as capital, so unlikely you can claim UC.
Would need more details , is the second property for sale? what is the equity in it, is the rental set up as a business?

A second property is capital so if worth more than £16,000 you are excluded from UC unless a disregard applies. The most likely disregard is if the property is on the market but there are a few others. Is the property lived in my relatives, if so who are they?

I live in a flat with my partner who she has inherited from his father.

I purchased my own apartment but she does not want to move into it.

So I'm asking if I rent out my own flat and live in my partner's flat would I still be able to claim housing benefit? 

My flat purchasing price was 165k which was 50/50 cash and mortgage. 

poppy12345

RezJila said:

calcotti said:

housebuyer143 said:

RezJila said:

Hi there, 

Does owning a property mean I cannot claim universal credit, or would I still be getting full universal credit if I rent out my property? 

Rental income is counted as income for you, so you will need to declare it and it will likely affect your benefits.

That is incorrect. Rent received is treated as capital, not income.

RezJila said:

Does owning a property mean I cannot claim universal credit, or would I still be getting full universal credit if I rent out my property? 

As Hill StreetBlues says

HillStreetBlues said:

Normally having a second property that you do not live in is classed as capital, so unlikely you can claim UC.
Would need more details , is the second property for sale? what is the equity in it, is the rental set up as a business?

A second property is capital so if worth more than £16,000 you are excluded from UC unless a disregard applies. The most likely disregard is if the property is on the market but there are a few others. Is the property lived in my relatives, if so who are they?

I live in a flat with my partner who she has inherited from his father.

I purchased my own apartment but she does not want to move into it.

So I'm asking if I rent out my own flat and live in my partner's flat would I still be able to claim housing benefit? 

My flat purchasing price was 165k which was 50/50 cash and mortgage. 

You can no longer start a new claim for housing benefit. All claims are now Universal Credit. Your question has already been answered. 

If there's capital in your property of more than £16,000 you will both be excluded from claiming all means tested benefits. Your partner not wanting to move into your property will not change the answer.

sammyjammy

Regardless of the rent you have circa 50% equity in a property you don't live in, none of the exemptions apply therefore you cannot claim Universal credit/assistance with housing costs.

You might like the answers but it doesn't make them untrue.

Jyana

You've just spent £82k plus on a new property in May this year, I think that will be viewed as depreciating yourself of capital, however you have spent it, on a property or elsewhere. I doubt that a Decision Maker would allow that to pass and grant you social benefits.

RezJila

sammyjammy said:

Regardless of the rent you have circa 50% equity in a property you don't live in, none of the exemptions apply therefore you cannot claim Universal credit/assistance with housing costs.

You might like the answers but it doesn't make them untrue.

Thank you for notifying me of this. 

I just do not like others telling me I'm abusing taxpayers' money.

I will still tho pursue this as a complaint - it is not about what I like or not - more like what I feel is my right. 

calcotti

RezJila said:

My question is if rent income classifies as capital or income and how it could affect one's social benefit.

Already answered

calcotti said:

housebuyer143 said:

RezJila said:

Hi there, 

Does owning a property mean I cannot claim universal credit, or would I still be getting full universal credit if I rent out my property? 

Rental income is counted as income for you, so you will need to declare it and it will likely affect your benefits.

That is incorrect. Rent received is treated as capital, not income.