I am seeking clarification on the following situation.
A client age 62 on guarantee credit had to move from her own home which has a mortgage to live in private rented accomodation which was more suitable for her disabilities.
She receives rent in the form of h.b. from the property she owns and she received full h.b.for the rented property she lives in.The property she owns is also up for sale.

Page 1002 CPAG Handbook states rent from a property other than your home is not taken into account as income and page 1003 states for p.c.,h.b and c.t.b. you are not counted as having deemed income on capital that is disregarded.So if the property she owns can count as disregarded because it is up for sale, I interpret the above as she can have rental income without it being taken into account and neither will the house she owns count as capital.This seems too good to be true and I,m worried i`m interpreting it incorrectly.

The pension service have just stopped her pension credit as they say she never declared the income from the rent.(h.b for where she lives has also stopped) She says she did decare the rental income and the original paperwork is being recalled to check.A further complication is that the house has been up for sale for three years (its in a really rough area)so disregarding the property appears to be at their discretion. Any commemts/ponts of law welcomed please.