Renting and housing benefit

Sya

Hi! Ive never claimed universal credit before but ive just lost my job. I received a small severance which has dwindled already. Im struggling to find a job now as i used to work in another city. i live in a tiny flat with my 7 year old son as a single mum and I own the flat. We HAVE to move. We have NO space (1 bed) and my kid is crawling the walls and always complaining. I have no privacy and Im getting depressed here. So please can anyone tell me:

- I want to rent a house (2 beds so we have our own space each) but I can't rent as I dont have a job!! 
- One way around this is to pay a lump sum of 1 years rent. If i use my severance (now £8k) to rent a house can I afterwards apply for UC / housing benefit (I dont know how how they work) and effectively be paid back for it? 8k will wipe out every penny i have and i have no job so i need money for bills. i also need to buy a car.
- 8k isnt enough for 1 years rent. Houses are around 1100-1200 pm or for something really small, £1000 pm. I dont want to borrow from family but i may have to. Is there any other way i can rent?
- Im hoping to rent out my flat and it will give a modest income (500 per month) but it needs repair work and we have so much stuff i need to move out before i can do that. that will be my only income so i asume i'd still get UC. i am re training in another job soon so eventually will have a job.

Does anyone have any other ideas on what to do?

thank you in advance!

itsthelittlethings

If you rent out your flat you may be counted as having capital and not eligible for UC.

Sya

it needs repairs so i cant rent my flat out anytime soon. if the renting position changes later i can come to that. for now, lets assume its left empty 

itsthelittlethings

You might still be counted as having capital if you had a property you weren’t living in. Others will be able to advise on your situation better than me.

itsthelittlethings

However there is good news. If you only have 8k you are already entitled to claim Universal Credit so can start a claim, you will lose some money for savings over 6k.

Schwarzwald

Asking the obvious: Why dont you sell the flat and use that money to rent?

marcia_

Sya said:

it needs repairs so i cant rent my flat out anytime soon. if the renting position changes later i can come to that. for now, lets assume its left empty 

 If you leave it empty and you rent elsewhere you wont be entitled to UC 

KxMx

The circumstances in which the flat could be disregarded from counting as UC capital:

https://england.shelter.org.uk/professional_resources/legal/benefits/universal_credit/universal_credit_capital_rules#disregarded-capital

Exodi

Just my take on it -

Why exasperate an already stressful time by trying to throw a house move into it? I think this can surely wait until you have a new job?

I would remove this part of the issue entirely. You then don't need to find rent and you would be entitled to UC, which should help with your bills and other costs. The 8k won't effect this.

I appreciate your flat is too small, I just think of all moments to decide to move, this is surely the worst (unless you were hoping you could somehow end up with a bigger house out of this? Unfortunately this cannot happen as you would not be entitled to UC if you had the flat but didn't live there, and if you sold the flat you'd not be entitled either as you'd be over the capital limit (aka, you'd be expected to live off the sales proceeds).

Put the house upgrade on the back-burner until you're back in stable employment.

gwynlas

Good on you for retraining and  understand that things might be stressful at the moment,
Your flat would have to be really tiny for it to be causing such an issue.
You could let your child have the bedroom and you can sleep in the living room.
if you have too much stuff then it is time that you decluttered with a view to making more space.
Any repairs needed should be carried out to make the flat comfortable

mta999

Just to say when the Renters Rights Bill becomes law (which is imminently) you will not be able to pay any more than one months rent up front

This part of the law will hurt people who want to rent but don't have enough income monthly but have enough capital to pay in advance - that will no longer be possible