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Original poster

Is this allowed? Buying property.

36 replies

MyCreation · 31/01/2023 18:32

Fourteen years ago I was left homeless by my abusive ex. The only asset he hadn’t squandered after 23 years of marriage were his private pension savings and the £10,000 that was left after our house was taken back by the building society to cover his loans.

I was left £75,000 inheritance after my DF died. So in all I had £170,000 which I have invested and been taking an income from since I took early retirement due to a progressive health condition.

I’ve been renting ever since. Now rents are getting out of hand am I allowed to use my investment to buy a small flat outright, if that then leaves me needing to claim housing benefit in order to live . The flats I’m looking at would leave me with less than £16,000 you need in savings in order to claim benefit. It seems so crazy putting more and more of my savings into a rental property but would buying a flat be viewed as deliberate disposal of savings ? I’ve googled but can’t seem to find the answer. I’ve never claimed any benefits before.

OP posts:

MaverickGooseGoose · 31/01/2023 18:46

If it's not I'll be appalled.

Happygirl79 · 31/01/2023 18:51

Why would you think it's appropriate for taxpayers to pay for you when you have plenty of money to look after yourself?

FiveShelties · 31/01/2023 18:51

Are you going to live in the flat yourself? If so, why would you get housing benefit?

Viviennemary · 31/01/2023 18:54

If you buy a flat then you won't get housing benefit. That is just for people paying rent.You might qualify for or Universsl credit. I don't think buying the flat to live in will count as deprivation of assets.

EveryoneLovesSausageAndChips · 31/01/2023 18:55

2nd to last response on this thread says claiming benefits is allowed and isn’t deprivation of assets if you buy a property.
www.mumsnet.com/talk/legal_money_matters/4627093-will-i-be-able-to-claim-universal-credit

fairysimples · 31/01/2023 18:55

You won't get housing benefit as part of your UC if you own your property will you?

WinterStar1 · 31/01/2023 18:56

Yes, you can buy a flat/house outright and apply for benefits as long as any savings you have left don't wipe out your eligibility.

WendyAndCIyde · 31/01/2023 18:57

You can buy a flat. You obviously won't get housing benefit, but you won't anyway with those assets. You might as well buy the flat and secure yourself somewhere to live.

titchy · 31/01/2023 18:58

Do you mean you'll buy a flat to rent to someone else, then rent some where yourself and claim the HB part of UC? In which case no of course you can't.

Or do you mean you'll buy yourself a flat to live in, and then claim PIP/UC? In which case yes of course.

DemonHost · 31/01/2023 19:06

Obviously if you buy a flat to live in you won’t get housing benefit as that’s for housing - I presume you mean Universal Credit.

I also think what you are concerned about is “deprivation of assets”.

I suspect that as a claimants residential dwelling is disregarded, then you would be fine.

kitcat15 · 31/01/2023 19:17

Are you getting mixed up with universal creditOP….it’s fine to buy a flat ….but then you wouldn’t be eligible for HB

TakeYourFinalPosition · 31/01/2023 19:19

As others have said; you can buy somewhere, and you can claim UC, but you wouldn’t be eligible for a housing payment as you own where you live. I think you can apply for help with the interest on a mortgage, but it’s short lived and not great.

Original poster

MyCreation · 31/01/2023 19:21

Do you mean you'll buy a flat to rent to someone else, then rent some where yourself and claim the HB part of UC? In which case no of course you can't.

It would be for me to live in.

Or do you mean you'll buy yourself a flat to live in, and then claim PIP/UC? In which case yes of course.

Yes, it’s for myself. To buy a one bed outright somewhere I could afford would wipe out nearly all my savings so I’d need to apply for UC (sorry, I didn’t mean housing benefit).

DemonHost Deprivation of Assets is what I was thinking about but if your housing isn’t counted that would be good. But would that still apply if I bought a flat and immediately claimed UC. Thanks so much everyone, this is really helpful. I’m so sick of ever increasing rents for somewhere I don’t particularly like.

OP posts:

YukoandHiro · 31/01/2023 19:22

You can't claim housing benefit if you own a home. You may be able to claim universal credit to cover the cost of living if your income/pension is too small.

YukoandHiro · 31/01/2023 19:23

Have you thought about stamp duty?
Have you thought about maintenance costs?
Home ownership is far more expensive than renting when it comes to day to day costs incurred to do with upkeep

Everybodywants · 31/01/2023 19:25

With regards to buying a flat make sure you factor in monthly service charge/ground rent into your living costs along with contents/building insurance. Make sure you check and double check it hasn't got any flammable cladding on it that would make it impossible to re sell.

For a single person I don't think the amount of UC per month is very high. Is your health such that you can't work therefore you'll get PIP?

Bellalalala · 31/01/2023 19:26

You can claim UC. Housing benefit, you can’t.

But as op said, will you have enough to run the flat? Upkeep etc? How long will the ‘under 16k’ last?

Bellalalala · 31/01/2023 19:26

Sorry by housing benefit I mean housing element of UC.

Everybodywants · 31/01/2023 19:27

I think if you are eligible for PIP then you should be able to afford to live. Have you run your numbers through the entitled to calculator?

Schoolchoicesucks · 31/01/2023 19:27

If you own a flat then you wouldn't be able to claim housing benefit.

You may still be entitled to other benefits or UC but not housing as you wouldn't have any housing costs.

UrsulaPandress · 31/01/2023 19:30

Where us your £170k invested to be living off the interest?

Coffeellama · 31/01/2023 19:31

I think if you still have between 6-16k of savings your universal credit is reduced as a result until it goes below 6k. Also how old are you? As things change an pension are im sure. I think you’d need to do a lot of research into this.

Original poster

MyCreation · 31/01/2023 19:42

Thanks so much everyone. I am 62 and will be entitled to a full state pension at 67.5 if I’m still alive. I am going to have to do a lot of research to see if I’ll have enough to cover all my outgoings if I buy and do realise all repairs and building insurance will be my responsibility. I doubt it’s going to be possible as it’s a struggle on what I’m taking from my savings each month just to rent plus bills. But the main thing I wanted to know is if it would be seen as deprivation of assets if I bought a flat and then claimed UC immediately.

OP posts:

Original poster

MyCreation · 31/01/2023 19:44

Have you run your numbers through the entitled to calculator?
I will . I haven’t up to now as I was unsure whether I’d be entitled to anything or allowed to claim if I bought somewhere

OP posts:

ChungusBoi · 31/01/2023 19:49

I don’t think it would if it’s a primary residence. You could ask Shelter or Citizen’s Advice to be more certain though.

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