Is the only way to give up my sitting room?

Is this something your council has told you? I don't think this is a national policy, I have worked in conjunction with my local council and the next one over as part of a previous role (charity) and neither would have housed to a women's hostel, men would sometimes be directed to a hostel in the short term until more 'permanent' temporary accommodation could be sorted but women seemed to be either straight to temp accommodation or to a private let facilitated by the council (who would sometimes pay their deposit as part of a scheme but I'm not sure if that is still running) might be worth a speculative call to see what the normal procedure is, may well be the case that they house to hostel, I'm based in the north east though

Thanks. Do they only get UC after getting a job? Or do they just have to show they are actively applying for work? And is it the same for people near retirement age?

This happened to a friend of mine, in that they came back from overseas and struggled to find a place to rent. UK citizen, born here but lived abroad for a long time. In the end they paid six months rent up front for a rental.

If a person isn't resident in the UK but has lived elsewhere they have to be one habitually resident. Its not actually a question if time, it's having the UK as your centre of interest. It's, if you like, doing the things that a person does when living permanently in a place rather than just visiting. So having a job, children going to school, all of the usual things we do every day. Everyone who applies for social housing has to be habitually resident. Its actually easier to decide than it is to explain. ( I was a homeless officer for 25 years, and it's something we automatically thought of, is this person habitually resident?)

I don't think it's right that you can't rent a place without a job? If her rent is guaranteed, then it should be fine. But Shelter can advise more on that - I would definitely talk to them.

If she can't work, she might be eligible for UC or other benefits, so again, worth checking.

If she stays with you for three months and passes the residency test, then at least that gives you three months to come up with some kind of solution. A hostel might be a good way forward or she might have come up with a better idea by then. At the very least, you'll have more information and resources at that point.

Op I’m not sure who has advised you that no landlord would accept a tenant who doesn’t have a job. I would suggest you contact Shelter and your council private renting team for their view on this.

Yes from landlord direct rather than through letting agency - gumtree, marketplace etc. she may have to live in a house share

Surely after she has stayed the 3 months/become habitually resident then you could just do what many other family members have done in the past and write her a letter that you want her to leave by xyz date and then that is her notice to find somewhere. Then she can take that down to the council and explain that you are not willing to house her because it is putting strain on your family and she is in need of emergency housing and she will get put on the list for a council property or they will help her to find and put a deposit down on a private rental. They'll likely do whatever is easiest for them but either way id think she would be housed somehow and would then be able to add the housing element to her UC claim. You will just need to stand firm that she cannot come back with the council team as they will likely ring and try to convince you to keep her longer as it solves their problem the quickest.

I would perhaps in your shoes ring from a friends phone and ask the hypothetical to make sure the council would be obligated to house her as obviously you don't want her to be actually homeless, you could ask as if you were her but without giving any details and just say you are after advice at this stage ie. 'I have stayed with my sister for 3 months and am habitually resident however it is very cramped and I have to be on the sofa, we have fallen out due to this and she has talked about asking me to leave, where would I stand and could you help me if she follows through on asking me to leave?'

If countless other young couples/young adults have been able to be housed because 'my mum gave me a letter telling me to leave' despite having adequate space in the home for everyone and it being a clear grab for a council house then I certainly think they should help someone who genuinely doesn't have a permanent residence or way of renting when it puts her and your household into overcrowding for her to stay!

Best of luck getting her sorted!

There are companies you can pay to be a guarantor for you.

Maybe if you are able OP you could offer to pay this for your sister? That way you are still helping but you aren’t giving up your living space which sounds as though it will have a deleterious effect on your whole family.

My parents had a friend who ended up temporarily homeless and lived with us for 6 weeks when me and my siblings were aged about 14-22 and even though we were older and they had a large 4 bed house with 3 reception rooms, it was still a nightmare.

How does one prove intent to stay, sorry? Thanks

What does the doctor say about her long Covid? Or is that a long as a piece of strong question/answer?

You absolutely can rent somewhere without proof of income. It’s more difficult but is still possible.
I’d advise her to look on Spareroom and similar websites. Facebook can also be good for finding flat shares

Just to add here’s a link to the Shelter advice on finding a tenancy when on benefits https://england.shelter.org.uk/housing_advice/private_renting/how_to_find_landlords_who_accept_benefits

I think you’re writing off private rental too early on.

Yes, it won’t be straightforward to get private rental but it also won’t be impossible if someone has the means to pay for it. There are also independent guarantor services that are primarily aimed at foreigners moving to the uk / international students but take on other clients too. Most agents will have credit check requirements as part of their risk management. Totally independent private landlords, and lodger agreements are typically more flexible.

How is she getting back from where she is? Was the plan always to stay abroad till money ran out then come back?

Op I’m a bit confused are you saying that no one who is not in work is legally allowed to rent a property or are you saying that the majority of property agents and maybe landlords will not accept people who are not in work. There are plenty of people not working who rent privately and as far as I’m aware there is no legal requirement. I agree it might be difficult to find someone prepared to offer her a tenancy but that does not mean it’s impossible.

What is the habitual residence test? Is it just that she needs to be in the country for 3 months?

Could she do a house share thing? When I sold my last house, I used a website where people advertised a spare room for rent. It was a cheap way to have somewhere to live (the price included bills) and turned out to be a great way to make new friends. It was all quite casual - no authorities involved, so as long as she has a guarantor, people would probably be happy to rent out a room. By the way, in both houses I stayed in - 9 months in each - I had free run of the whole house.