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Original poster

Universal credit when you own property

42 replies

FlamingoYellow · 26/05/2022 12:37

I moved out of the family home just over 1 year ago after separating with my exH, who continued living in the house.
I live in a rented flat and our 2 dc live with me 5 days a week and exH 2 days a week. I started claiming UC when I moved out of the family home. When we sold the house a few weeks ago I updated UC that my savings now exceeded £16000 (the equity from the house). My UC has now been stopped and I have been asked to attend an appointment at the job centre to show proof of my savings.

I'm now panicking that the fact I owned property means I shouldn't have claimed UC after all and that they will ask me to pay it all back. I don't recall there being any questions about my owning property when I applied, which I thought was strange, but I was in an absolute state at the time with my marriage ending and finding somewhere to live, so I didnt question it further. I'm worried I filled in the forms wrong as I have ASD and I know I misunderstand forms at times, but I thought I had filled it in OK at the time.

I also thought, but maybe misunderstood this too, that my UC wouldn't end immediately but would continue for 6 months. The savings I have will be the deposit and solicitors fees for the house I am buying (completing in 3 months), so I can't really use that money to help with rent/bills and food. My rent is also being increased so I'm feeling very anxious about how I will afford to afford to live over the next 3 months.

I called the UC helpline but they weren't able to give me any advice. Does anyone have any experience or knowledge of this please?

OP posts:
LaDoIceVita · 26/05/2022 13:07

I can't answer the first part of your question but money from a house sale isn't classed as 'normal' savings if you're going to use it to buy another house. I believe it's not counted for at least six months and can be longer if the purchase genuinely cannot be completed in that time. Hope that helps and try not to worry too much.

Original poster
FlamingoYellow · 26/05/2022 13:16

Thank you. I'm going to just have to be honest at my appointment and hope for the best I think!

OP posts:
toobusytothink · 26/05/2022 13:26

My OH owns a property and is still entitled to UC

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BreakinbadBreakineven · 26/05/2022 13:39

I'm in the same situation house owning wise as you and just did an online benefits calculator which asked very specifically about my home ownership status and it still said I was entitled to UC. Interesting to know the above info from PP, thanks.

Biscuitandacuppa · 26/05/2022 13:44

I own a property (mortgaged) and claim UC. I can remember it asking me specifically if I owned any property including any properties I didn’t live in. I obviously don’t receive the housing element of UC. Did you receive the housing element towards your rent? Because if you did it’s likely that you weren’t entitled to it.

Be honest, explain your vulnerability at the time and your difficulties with forms. You should still be able to claim as your ‘savings’ are actually earmarked for another property purchase but you may have to pay back any benefit received that you weren’t entitled to. That is usually spread out over time.

CharlotteRose90 · 26/05/2022 14:00

It definitely asks you in the forms about where you are living, any places you own etc. Sadly it looks like you’ve filled it in wrong. Only thing you do is explain in the interview what’s happened . If you only got the money recently then as far as I know they’ll expect you to live on it till it goes and you won’t get paid anything. On that figure anyway. Maybe advise them it’s for a future house and hope for the best. I wouldn’t be banking on gettting UC till it’s out of your account anyway.

AmberGer · 26/05/2022 14:18

As pp has said, if you were claiming for the housing part towards rent, then you weren't entitled to this as you owned a property. Only people that rent and have no other property are entitled to this.

If you live in a property that you own, pay the mortgage etc. You can earn more before they deduct your earnings from the amount you're entitled to.

Original poster
FlamingoYellow · 26/05/2022 14:54

I was claiming the housing element 😔. I couldn't have afforded the rent, bills etc without it though so I'm not sure what else I could have done? I might see if I can bring someone with me to the appointment. I feel really scared that they will accuse me of benefit fraud. No idea how I'm even going to find the money to pay it all back either.

OP posts:
Biscuitandacuppa · 26/05/2022 15:31

You need to get some professional advice, maybe try Citizens advice or if any solicitors offer a free half an hour?

is it an interview under caution?

Original poster
FlamingoYellow · 26/05/2022 15:58

I could contact citizen's advice tomorrow.

No it is just an appointment for me to show proof of my savings. I would just cancel my claim if I could but I don't think I can do that?

OP posts:
hippolyta · 26/05/2022 16:03

You may have filled the form in incorrectly but it doesn't mean you have been overpaid.
If you owned a property you didn't live in but were selling it then it's likely it would have been disregarded.
Also if the money from the sale is going to be used to buy another house (but not for furniture etc)it can be ignored and your benefit shouldn't have stopped.
Ask them to reconsider stopping your benefit.

WhatInFreshHell · 26/05/2022 16:03

How did you claim the Housing Element without providing landlord and rent amount details? I'm sure I had to provide my tenancy agreement when I claimed.

Herja · 26/05/2022 16:07

My Ex owns a house with me, and was eligible for UC. (I know because CMS showed me his benefit claim in a tribunal pack. Definitely included a housing element.)

Good luck Flowers.

CombatBarbie · 26/05/2022 16:18

Don't panic too much, at the time of claiming you were legally separated and entitled to claim as you had left the family home. Just be honest with them or speak to CAB first. If they start getting shitty I'd be contacting a local MP, preferably one that has ties with any form of domestic abuse agendas or charities. This is the prime reason many women think they can't leave.

somebodyoutthere · 26/05/2022 16:19

I rent, and own a property and qualify for the housing element so don’t panic you will have filled it in right. I qualify as I currently have no access to the equity in that property. I have to keep them updated on the steps taken to release that equity (being bought out by stbxh). You’ve done the right thing in telling them as soon as the money hit your account, and hopefully there will be a reasonable grace period while you buy your new place. They do tend to stop uc while they investigate which can take weeks for a decision (I had the same last month). Hopefully your landlord might be amenable, or you can get an emergency overdraft. Hang in there x (when I made a formal complaint about the decision making time at uc it sped up the decision making process miraculously)

Original poster
FlamingoYellow · 26/05/2022 16:27

WhatInFreshHell · 26/05/2022 16:03

How did you claim the Housing Element without providing landlord and rent amount details? I'm sure I had to provide my tenancy agreement when I claimed.

I did provide evidence of my landlord and rent amount details.

OK, I'm feeling a lot calmer now with the most recent replies! I just filled out the entitled to calculator as if I was putting in a claim and there is a box to tick to say I own a property I don't live in but the only box I can see where I can fill in how much its worth assumes that I would be renting it out!

OP posts:
Babyroobs · 26/05/2022 17:44

The capital in the property can be disregarded for up to six months if reasonable attempts are being made to sell it. I think it can be disregarded for longer if a decision maker agrees. There is definitely a question asking if you own a property you don't live in though, or something similar.

Babyroobs · 26/05/2022 17:45

Herja · 26/05/2022 16:07

My Ex owns a house with me, and was eligible for UC. (I know because CMS showed me his benefit claim in a tribunal pack. Definitely included a housing element.)

Good luck Flowers.

This would be allowed if the house couldn't be sold because of you being able to live there until the children are grown up.

Babyroobs · 26/05/2022 17:47

AmberGer · 26/05/2022 14:18

As pp has said, if you were claiming for the housing part towards rent, then you weren't entitled to this as you owned a property. Only people that rent and have no other property are entitled to this.

If you live in a property that you own, pay the mortgage etc. You can earn more before they deduct your earnings from the amount you're entitled to.

Yes exactly. if you don't claim rent element of Uc you get a higher work allowance.

Original poster
FlamingoYellow · 26/05/2022 17:51

Now I'm even more confused 😭

OP posts:
user65342 · 26/05/2022 17:54

I'm sure that you can claim UC towards rent if you own a house but it is being lived in by your ex. Once sold the money doesn't count as savings for the first 6 months. It doesn't sound like you have done anything wrong.

Babyroobs · 26/05/2022 17:55

user65342 · 26/05/2022 17:54

I'm sure that you can claim UC towards rent if you own a house but it is being lived in by your ex. Once sold the money doesn't count as savings for the first 6 months. It doesn't sound like you have done anything wrong.

It can be disregarded for six months whilst being sold.

Ohsugarhoneyicetea · 26/05/2022 18:16

So long as you were taking steps to have the property sold it would be disregarded and you have 6 months to use the capital to buy another property.
www.legislation.gov.uk/ukdsi/2013/9780111531938/schedule/10?view=plain

Original poster
FlamingoYellow · 26/05/2022 18:25

I had thought that the fact my exh was living there and a lone parent then it was OK. But does he not count as a lone parent if he only has then 2 days a week?

OP posts: