If you sell your home and then rent it back, normally you are not entitled to Housing Benefit for five years from the date of sale.
However, if you can prove that you had no choice but to sell your home in order to continue living in it, this may not apply.
Proof you had to sell
If you had to sell the home you are now renting you must give us the reason(s) and provide evidence.
Proof could include:
- Letters from your mortgage lender about action they would take to collect debts
- Proof of your income and outgoings at the time you decided to sell
- Evidence of any legal action to repossess your home
- Evidence of other factors involved in your decision to sell
You do not need to prove that keeping your house was impossible. However, you do need to show us that your situation forced you to sell.
We may take into account things such as:
- Other benefits you could have claimed to help with your costs
- Debts which were secured on your home
- If these debts were likely to cause your mortgage lender to take back your home
- Other assets you could have sold
If you sell your house when you had other choices, you will not be entitled to Housing Benefit.
Capital from the sale
Any capital from the sale of your home may be included in your assessment for state benefits and may affect your entitlement to:
- Employment and Support Allowance
- Income Support
- Jobseekers Allowance
- Pension Credit
- Housing Benefit
- Tax Credits
- Universal Credit
The information in this section is for general advice only. We recommend that you contact your local Housing Benefit office if you have any queries.