Anyone know anything about housing benefit?

[grounddown]

This is my situation

Single mom of 2, renting privately.

I own a property with my ex that is in negative equity by about £15k - we cant afford to cut our losses and sell it. He doesnt want to live in it and its too small for me and the kids so we rent it out and make a small profit of £40 each per month after estate agents fees. Its cost me £550 this year alone on boiler repairs and gas certificate and work so thats pretty much gone. Tax credits are aware of this income.

I work 16 hours per week and claim child tax credits and working tax credits.

My mortgage is due to go up in November by £250ish per month as the fixed rate ends and with rate rises in the air im shitting myself. My friend asked me how much housing benefit i get but ive never claimed it thinking i would be ineligible as ive got a property. She reckons that as theres no equity in it and im actually paying towards it each month instead of getting an income (as of novermber) i can claim.

Does anyone know?

If your house is being rented to a single mum on benefits sounds like her rent is being paid by HB. Have you checked that the rent you are charging is equal to the max HB for that type of property? It could be that you can raise the rent and it won't change her financial situation. You can check the rates on the councils website. Not an ideal solution but may help in the short term. But you need to speak to the council. In some areas they run Welfare Rights drop in sessions the advisors are usually pretty well clued up on situations like this and often are usually less busy than the CAB.

Thank you

The rent for the property you jointly owned with your partner is being paid for by the taxpayer. You are also hoping the tax payer will cover the cost of a property you are privately renting. Meanwhile your ex is living in a detached house. I fail to understand how this can be right. Either you or your ex should live in the house and your ex has a responsibility to support the children financially.

It's good to keep a toehold in the property market. Your income is not £40 a month from this property. It is zero as you have paid out more than you earned.

Secondly you rent so yes apply for HB. You have no assets and no income, just the hope the £15k negative equity might fade in future as it probably will if you wait it out.

What about taking a second job too - that often is the answer.