UC rules around moving house if buying and selling

[52andblue]

I have a house I own (with a mortgage) I'd like to move as it's no longer suitable.
I receive UC as I am a f/t Carer for my two young people who are disabled.
I am aware that savings of more than £6K reduces UC & more than 16K stops it.

As my young people are not likely to live independently (that I can see) we need our UC. So, if I sell my house for, say £100K then how long do I have to buy another for £100k (does it have to be exactly?) & is any allowance given for costs eg lawyers/estate agents/ moving costs/improvements/repairs new home?

I have asked on my UC journal page but, as usual, they just say: 'we cannot advise on potential changes. make the change, advise us & we will adjust accordingly'. So, jump & hope for the best? I cannot get a reply from my local CAB (basically shut down). The national CAB line is only for 'new enquiries'.

So, how do I find out? I 'd like to move as our current housing isn't very suitable now but maybe I just can't?

You would be over the threshold so would lose UC until the money was reduced.

UC is for those in need not to fund moving costs.

I think they disregard house sale money for six months. I've not moved house since I've been on UC though so I've not tested it.

As above they disregard for a while.
Keep all the financial evidence though.
When I moved house due to disability making my old house unsuitable, I bought a house that needed adapting (so kept back £30000 from sale of house), I had to show all my paperwork. All the builders receipts, solicitors fees etc. Would it be better to buy and sell at the same time to avoid any issues? Especially if your purchase fell through so you don't end up in a situation whereby you stop getting uc.

As I have explained I have two severely disabled young people whom I look after full time so I cannot work. This has been decided by DWP.
I asked for advice, not judgement.

@StedSarandos thank you. 6m should give me time to find somewhere else suitable that I can afford.

@Dontlookup1 thank you this is really helpful. I would certainly like to buy & sell at the same time, it's just the logistics of it.

Where will you live in the meantime?
Are you able to buy and sell at the same time?
I think PP is right about it being 6 months but personally I wouldn’t risk it and would try to do the sale and purchase on the same day to avoid problems with UC and having to move twice.

Ive heard this too but I don't know for sure that this is true. Ask chatgpt!

Info here

"Funds from selling your home
You must tell us about funds from the sale of your home, even if you intend to use them to buy another home for yourself. We will not take these funds into account for 6 months. This can be extended under special circumstances."

You'll be fine, op.

Aren't you a peach!

When we divorced, my ex dh bought me out. I had £100k of equity sat in my account for a few months. I fully informed UC and it was fine as it was towards another house purchase. It didn’t affect my claim.

Surely you would move from one property and into the other so you wouldn’t have 100k?

@goz I think the payment still has to go via your account due to money laundering regulations? I expect there are specific rules around this, but what?

I am very keen to follow the rules. It just seems really hard to find them out. UC won't say. CAB is shut locally & nationally just direct you locally. I am really wary of relying on ChatGPT for somthing so important. I've tried to look on Gov.uk but I can only find info about those claiming Housing Benefit which of course i don't but I can't be the only one in this situation.

This is what you need
https://data.parliament.uk/DepositedPapers/Files/DEP2025-0364/026._Capital_disregards-Guidance_V30.0.pdf

look up capital disregarded for 6 months.

well I had to rent so I had to put down 2 years coz my income is too low but now I have the rest so can’t get UC so all the “rest” will be spent

@Burningbud1981 Thank you.
Now I need to find out if any associated costs can be taken into account.
Ie if I sell for 100, spend 90 on new house & the 'spare' 10 is used for lawyers, estate agents & moving fees, or say, putting in ramps etc. is that allowed as part of costs. It sounds as though it might be if I keep all receipts?

If you’re buying a property at the same time as selling it doesn’t go into your account, the solicitor transfers the funds to clear the mortgage, then then the money being put towards the new property is transferred directly for that.

As PP have pointed it there’s a small window of time you can have the funds and it not count as savings. However moving out of an owned home to rent, only to buy soon after doesn’t generally make financial sense.

@goz OK I didn't know that. Helpful - thank you! x

Pop over to redddit on the dwp / benefit UC sections
you have actual dwp workers who can advise you properly and explain what to do

Thanks @ChrisMartinsKisskam I'm not really on SM (except MN) so hadn't thought of that. I might look at that moneysaving person site too.

For us, there was a period of time between my exdh buying me out and my new house sale going through.

The legal fees and estate agents fees will also not touch your account, generally the solicitor will pay those directly before paying you any excess.

Funds for adaptations would come into your account, but funds for essential repairs or alterations can also be disregarded for six months with the option to extend that period if the repairs take longer. Get full quotes ASAP, keep all receipts and paperwork.

Edited to add that the source for that is the same capital disregard rules posted by a pp. You might want to quote those in your journal.

UC rules state you have 6 months to purchase anther residence as your home - so although you'd need to declare the money going through your bank account on that one day - it should be totally disregarded. This is written in their own government rule book - so if they were to act upon that money you'd could go to your MP to get this sorted after of course complaining to UC through the proper channels - but its unlikely to happen.

Funds from selling your home
You must tell us about funds from the sale of your home, even if you intend to use them to buy another home for yourself. We will not take these funds into account for 6 months. This can be extended under special circumstances.

www.gov.uk/guidance/universal-credit-money-savings-and-investments#property

@MikeRafone thank you, this is helpful.
I would hope to sell my property & find another one, perfectly suited at just the right time. However, I can see I might need to get what I can, & then adapt it.
Any adaptations/repairs at any new property would not be funded be 'grants or loans' as no councils help any more. It will need to come from any capital left after the sale/purchase.

@AirborneElephant as above, having looked at that part of the rules, it seems that only funds from grants or loans are disregarded. I am unlikely to get those (they don't seem to exist any more!) so if I needed to replace a boiler, put in a ground floor shower room, or repair a roof I am assuming I'd have to fund it. That's okay but if UC classed a, say, £20K 'repair fund' as savings then I'm stuffed. I cant see where in the rules it covers what I am talking about (ie not 'left over lovely money for a new sofa / pretty plants for the garden' sort of thing but an accessible shower room, widened doorway, essential boiler replacement etc

So, I'm nervous of moving as that all seems risky/impossible but my mobility continues to worsen & my current living space directly worsens my health.

52andblue

have you exhausted charity grants or any other local grants other than local authority?

I've had people totally unaware of some local grants from long established charities - one set up in 1554 and have applied to it myself for funding, which they granted.

I realise that sometimes funding form charities has already been used and they'll only give once, but do look at all types of charities and funding using both google and chatgpt

https://www.gov.uk/disabled-facilities-grants

I take it youve been turned down by local authority for these grants?