Housing Benefit and shared ownership

[Solasum]

I am looking for a new, better-paid, job, and a new home for DS and me.

I would love to get on the property ladder, but as we are in London, and my income is not enormous, the only realistic way is through shared ownership. To be honest, I see SO as a guarantee of not having to move house again any time soon.

I know you can claim housing benefit to cover the rent element of shared ownership. At the moment I have savings meaning I am above the threshold to be able to claim, though these are slowly dwindling.. But, if I was to be allocated a SO property, my savings would be wiped out by paying a deposit and moving.

My q: in this situation could HB reasonably be withheld on the grounds that I had deliberately got rid of my assets, even though I would have had to to proceed (Sorry, I know there is a technical term for this, but can't remember it).

(Disclaimer: I would claim only in case of necessity, I am not looking for a freebie, I just want to have the whole picture)

Thank you

I think you need to check what the situation is with housing benefit and the mortgage payments. I think the government used to pay the interest payments for a limited period of time only. I live in a shared ownership block of flats and know several neighbours who fell on hard times and left so don't think housing benefit can have covered their costs in full.
I don't know whether using your savings to buy would be a problem if needing to claim housing benefit at a later stage. I think it would depend on the full circumstances.
I have noticed that mortgage applications have got a lot stricter especially around affordability, so would you qualify for a mortgage if you are on a low income? We are currently doing a remortgage and it is unbelievable the questions we have been asked and the paperwork we have had to submit.