Can I Get Universal Credit If I Own A Property

December 2023

Can I Get Universal Credit If I Own A Property In December 2023

If you own a home and are considering applying for Universal Credit, it is crucial that you understand how this may affect your benefit award.

Here is an overview of the factors you must consider while filing a claim.

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1 – The amount of your rent

If you reside in a privately owned residence, the amount of rent you pay will be considered when assessing your benefit eligibility. This means that any rental income you earn from tenants could reduce or eliminate your eligibility for Universal Credit.

2 – Your other sources of income

Before applying for Universal Credit, it is also vital to consider any other sources of income, such as earnings from a job or investments, as these can alter the amount to which you are entitled.

3 – Whether or not you have liabilities

If you own a home, you may also have liabilities, such as a mortgage or loan, that must be considered when assessing your benefit eligibility. The amount of these payments will be included in your overall income and may diminish your eligibility for Universal Credit.

4 – Your capital assets 

When determining your eligibility for Universal Credit, the Department of Work and Pensions (DWP) will evaluate any capital assets (such as savings and investments) you may have. Therefore, if your assets surpass specific limits, you may not be eligible for Universal Credit.

5. The length of time you have lived in your property

When applying for Universal Credit, the amount of time you have been in a property that you own will also be considered. If you have only recently moved into the residence, the DWP will likely count it as part of your taxable income.

By knowing how property ownership may affect your application, you can ensure that you are aware of any potential consequences before submitting a claim. 

Contact your local Job Centre Plus office or visit www.gov.uk/universal-credit for additional guidance and information about claiming Universal Credit if you own a home.

Watch Our Short Video On “Can You Get Universal Credit If You Own A House?”

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Living In A Property With Shared Ownership

Universal Credit applications require you to consider some additional variables if you reside in a property with joint ownership. This applies to Housing Association, council housing and social housing.

1 – Your rent contribution

The amount of rent contribution considered when determining your benefit eligibility is dependent on the type of shared ownership agreement you have with your landlord and the amount of capital you have contributed to the property.

2 – Mortgage payments

Shared ownership arrangements typically include monthly mortgage payments, which may be factored into the total income calculation for Universal Credit payment purposes. Before submitting a claim, you should check with your lender to determine how this may influence your benefit award.

3. Rent from tenants

If you receive rental income from other tenants in the home, this income may be included in determining your eligibility for Universal Credit.

By knowing how joint ownership can affect your application for benefits, you can ensure that you are as well-prepared as possible before submitting a claim.

However, you should let them know if they are in rent arrears.

What Is Housing Allowance?

Housing Allowance is a form of government assistance that helps people on limited incomes to pay for accommodation.

It is one component of Universal Credit and can be used to cover rent payments and other housing costs such as water rates, energy bills or contents insurance. 

Eligibility for local Housing Allowance depends on an individual’s circumstances, including their income and the number of dependents they have living in the same household.

Housing Allowance

10 Things That May Affect Your Universal Credit Payments

Once your Universal Credit claim has been submitted and approved, there are several additional factors that might alter the monthly benefit amount.

1- Your earnings

Any earnings or income from your job, self-employment, or investments will reduce your Universal Credit payout by £1 for every £1 you earn. This means that if you earn £100 per month, the amount of Universal Credit you receive will be reduced by £100.

2 – Other benefits

You may also be eligible for other means-tested benefits, such as Tax Credits or Housing Benefit, which could impact your Universal Credit eligibility. Before submitting a claim, it is essential to consult with a guidance agency, as you may not be eligible for Universal Credit at all.

If you own a home and are considering applying for Universal Credit, it is crucial that you understand how this may affect your benefit award.

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3 – Changes in your circumstances

Changes in your circumstances, such as a reduction in hours or a change in your capital assets, may result in an increase or decrease in the monthly benefit amount you receive. It is essential to promptly notify any changes and ensure that your claim reflects these modifications.

4 – Savings, assets, and investments

Your savings, assets, and investments can affect your Universal Credit. When submitting a claim, you must provide all capital assets (such as savings and investments) to determine your eligibility accurately.

Tax credits

5 – Tax credits 

Universal Credit payments may influence your eligibility for these benefits if you also claim tax credits. Before submitting a claim, it is essential to consult a guidance agency to ensure that you understand the implications of your other benefits.

6 – Rental income 

Any rental income you get from a property will often be considered when determining your eligibility for Universal Credit. Consider it a portion of your taxable income and include it in your application.

7 – Working tax credit 

If you work 30 or more hours per week, this may influence your eligibility for Universal Credit. Before submitting a claim, it is essential to consult with a guidance agency to determine the potential impact this will have on your benefit award.

8 – Childcare costs

Universal Credit can assist with childcare costs, but you must meet specific eligibility conditions to qualify. Check the requirements before submitting a claim, as this could affect your total entitlement.

9 – Discretionary payments

Depending on your circumstances, you may be eligible for additional discretionary payments from Universal Credit. These are typically focused on the individual’s personal needs and may include assistance with living bills or medical equipment.

10 – Shared Ownership

Owning a home with shared ownership may affect your eligibility for Universal Credit. This can alter how much benefit you are eligible to get, depending on the size of your mortgage payments and any rental income you receive from renters.

Housing Payment

What If Your Housing Payment Does Not Cover All Your Rent?

If your housing payment does not cover your entire rent, you can apply for a supplement under the Additional Support Needs (ASN) component of Universal Credit. Available to adults with a disability or long-term illness, children under 16 years of age, or those receiving certain other benefits, this can assist in covering any gap.

For additional information, contact an advising agency or the Universal Credit helpline.

What Happens If You Become Homeless While You’re Getting Universal Credit?

Help is available if you become homeless while getting Universal Credit. 

You should call your local government as soon as possible and explain your position to them; they will then offer guidance on your future steps. This may involve a referral to a housing nonprofit or access to alternative forms of temporary housing.

You may be eligible for additional assistance from Universal Credit to assist with the rent for any temporary housing. Contact a counselling service or the Universal Credit helpline for further information on this type of assistance.

What Other Advice and Support Is Available?

Prior to completing a claim for Universal Credit, it is essential to understand how it operates and how it may affect other benefits you get. An impartial advising agency can provide additional information and counsel regarding the optimal course of action.

Find out if you qualify for other types of assistance in your area, such as food banks and guidance centres. These can assist with any additional expenses incurred while receiving Universal Credit.

Universal Credit recipients have access to various assistance, and you must take advantage of all available resources. Contact a counselling service or the Universal Credit helpline for further information on how to obtain this assistance.

In addition, the government has implemented programmes such as “Universal Support,” which provides individualised guidance and aid with budgeting, digital skills, and employment access. There is additional information available on the Universal Support website.

Remember that you are not alone and that assistance is available if required. Contact a guidance agency or the Universal Credit hotline for further information on obtaining support with your claim.

It is imperative that you quickly disclose any changes to your circumstances or income during the duration of your Universal Credit claim so that your benefits can be evaluated. A guidance agency can provide additional information on what to do in these circumstances and recommend the best course of action.

Do You Pay Council Tax If You Are On Universal Credit?

Generally speaking, if you are living alone and claiming Universal Credit, then you will be liable for Council Tax. 

However, if you are part of a couple or have dependents who live with you, you may be exempt from paying this tax. Additionally, those receiving certain benefits or who are on low incomes may qualify for discounts and exemptions from Council Tax payments.

To find out more about whether or not you need to pay Council Tax if you’re on Universal Credit it is best to speak directly to your local council tax support team for up-to-date information. They can provide detailed guidance on any discounts, council tax reduction or exemptions that may apply to your circumstances.

In addition, the Citizens Advice Bureau can help with any questions that you might have.

Universal Credit Homeowner – Can I Claim Benefits If I Own A House?

You may wonder whether you are eligible to receive Universal Credit if you own a house. You are not automatically disqualified from getting assistance just because you own a house. Many benefits are not based on assets but on income and special circumstances. 

For example, even if you own your own home, you might still be able to get benefits like Universal Credit, Employment and Support Allowance, or Jobseeker’s Allowance. But if you have more savings or cash than a certain amount, it can affect your eligibility for some benefits that are based on your income. 

If you have a debt, you may also be able to get help with the interest on it. When you ask for benefits, you must be honest about your property, savings, and income, and you should talk to a welfare advisor or the right government office to find out what you might be eligible for.

Can You Claim Universal Credit If You Have Mortgage?

You can still get Universal Credit if you have a debt. Universal Credit is a means-tested benefit, which means that your status will depend on your income and other factors, not just on whether or not you own a home. 

If you qualify, you might get housing benefits in the form of a loan for your mortgage interest. This is called the Support for Mortgage Interest (SMI) programme.

SMI can help you pay your mortgage interest, but it’s important to remember that it’s a loan that will need to be paid back with interest when you sell your house or pass it on to someone else. When applying, it’s always important to give correct and up-to-date information and talk to a welfare expert to fully understand your rights.

Can I Get Universal Credit If I Have Rental Income?

If you receive rental income from a property you own, you can still apply for Universal Credit. But your rental income will be taken into account when figuring out how much money you have. After certain allowed property costs are taken out, the rest of the rental income will be considered unearned income. 

This will probably lower the amount of Universal Credit you can get, pound for pound. When applying for Universal Credit, it’s important to list all of your income, including rental income, so that you can be accurately assessed and avoid overpayments or penalties. 

Does Owning A Caravan Affect Universal Credit?

Your claim for Universal Credit is not automatically changed if you have a caravan. But if the caravan is a capital object or makes money (for example, if you rent it out), that could change your eligibility. 

The amount of your personal assets, less any loans you still owe on them, can be added to your total capital. If your total cash is more than certain limits, it could affect how much Universal Credit you get or even if you can get it at all. 

When applying for or changing your Universal Credit information, it’s important to list all of your assets, including a caravan, and any income you get from them. This will help you get an accurate assessment and avoid overpayments or fines.

Meet the author

Jane Parkinson

Jane Parkinson

Jane is one of our primary content writers and specialises in elder care. She has a degree in English language and literature from Manchester University and has been writing and reviewing products for a number of years.

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Frequently Asked Questions

What Is Housing Allowance?

Housing Allowance is a form of government assistance that helps people on limited incomes to pay for accommodation.

It is one component of Universal Credit and can be used to cover rent payments and other housing costs such as water rates, energy bills or contents insurance.

What If Your Housing Payment Does Not Cover All Your Rent?

If your housing payment does not cover your entire rent, you can apply for a supplement under the Additional Support Needs (ASN) component of Universal Credit. Available to adults with a disability or long-term illness, children under 16 years of age, or those receiving certain other benefits, this can assist in covering any gap.

What Happens If You Become Homeless While You’re Getting Universal Credit?

Help is available if you become homeless while getting Universal Credit. 

You should call your local government as soon as possible and explain your position to them; they will then offer guidance on your future steps. This may involve a referral to a housing nonprofit or access to alternative forms of temporary housing.

Do You Pay Council Tax If You Are On Universal Credit?

Generally speaking, if you are living alone and claiming Universal Credit, then you will be liable for Council Tax. 

However, if you are part of a couple or have dependents who live with you, you may be exempt from paying this tax. Additionally, those receiving certain benefits or who are on low incomes may qualify for discounts and exemptions from Council Tax payments.

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