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Getting housing benefit whilst renting out a property

(13 Posts)
HealthyMind Wed 24-May-17 20:53:46

This may sounds like a silly question, but I’m totally new to this and haven’t a clue.

I have a mortgage on a property. I have rented out the property to a family. I was living at a different address with a partner until December 2016, but then we broke up. Subsequently, I got diagnosed with depression in February 2017. Then to top it off, I lost my job in April. I’m now on Employment and Support Allowance, as I get a sick note from my GP because of my depression, and I get £73 per week.

I’ve been living back at my moms permanently for the last few months. My mom is a carer for someone, and gets Care Allowance of £62 a week and Income Support of £45 a week. My mom rents the house from a private landlord. The rent is £125 a week.

I can't move back to m property as they have a tenancy agreement until the of the year. The rent I get from the tenants just about covers the mortgage as it's a variable mortgage.

What I want to know is, can we get help to pay the rent, and get help with council tax, as I’m on Employment and Support Allowance, and my mom is on Income Support due to low income and gets Care Allowance. Normally I think you would, but since I have a mortgage on another property, would this still be allowed, or as it’s another property, I would be entitled to help where I’m living now?

I think it may be called Housing Benefit. I briefly spoke to someone who helps people with getting benefits they’re entitled to. She worked some calculations out and said we may be entitled to about £90 a week Housing Benefit. (I think she said Housing Benefit, but could be wrong). However, I never mentioned I have a mortgage on another property, as I was never asked. Not sure if it makes a difference, or she forgot to ask.

As I said, may be a dumb question, but if anyone can shed some light, it would be really handy.

Georgieporgiepuddinandpie Wed 24-May-17 20:56:40

You don't "have a mortgage on a property" you OWN a house.

Of course you can't get HB.

Georgieporgiepuddinandpie Wed 24-May-17 20:57:23

Sorry that sounded really harsh. You can't have over a certain amount of money or own a property.

You don't have a break clause in your contract?

Auspiciouspanda Wed 24-May-17 21:03:15

Hi I'm a housing benefit assessor

If it's your mums tenancy with just her name on it she would be the applicant and you would be the non- dependant.

We do not ask if non dependants own property so that doesn't matter - it's only other properties the application own that affects entitlement.

Your mums housing benefit will have non dependant deduction taken which reduced housing benefit - however this varies depending on your age, whether you are getting income related esa and if you are in the support group/component of esa.

TheHiphopopotamus Wed 24-May-17 21:03:33

No you won't.

My friend was in a similar situation and they will find out that you already own another house, even if you don't declare it (which my friend didn't initially, but they found out anyway).

She wasn't able to claim any help towards housing costs and rightly so, imo.

BeepBeepMOVE Wed 24-May-17 21:09:01

I hope you won't.

Babyroobs Wed 24-May-17 21:39:06

Your mum can apply for housing benefit and as pp says you would be classed as a non dependent so expected to contribute towards the rent, so she may not be entitled to as much as she would if you weren't living there.
Can I ask why your mum has never claimed up to now?

Babyroobs Wed 24-May-17 21:42:46

Hipho - It would not be op making the claim so it's irrelevant that she owns a house !

Smeaton Wed 24-May-17 21:44:01

I claimed housing benefit and owned a property I rented out. I had to show them the tenenacy agreement and my bank statements showing rent in and mortgage out etc.
They do a calculation that gives them a figure and an idea of your income from then property. The house I owned was losing me money every month but they still dropped my weekly HB by £4
This was 2 years back though so i don't know if things have changed.

goteam Wed 24-May-17 21:47:57

If you rent out a property you need to let HMRC know as you are liable for tax on the income. It's classed as income so would presumably affect benefits too.

Babyroobs Wed 24-May-17 21:59:44

I'm presuming it's contributions based ESA you are claiming ?

BritInUS1 Wed 24-May-17 22:09:09

Also bear in mind that mortgage interest will soon not be an allowable deduction on a rental property, so you might have to pay tax on your rental income

specialsubject Thu 25-May-17 12:10:28

good luck here, OP - remember on MN you are an evil bastard landlord and the fact that you are ill, jobless and have a broken relationship counts for nothing against that.

hence the spewed bile. Not what you need.

if there is a break clause in the tenancy, implement it. And with the tax changes you will probably find that you need to evict the tenants at the end anyway.

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