HI everyone i was wondering if anyone else had come across this. I have a lady who has sold her house to her daughter and is also still in receipt of GPC and in a assesed income period. Straight forward so i thought, however the council have suspended her claim as they believe she sold her house under the market value to her daughter to get benefits. The house still had a mortgage so realisticly only got around £10,000 after she paid her bills and mortgage. BUT i am arguing she is receving GPC and is in entitled to Housing Benefit until the end of the AIP regardless who she sold her to or how much. I have appealed this but they are still refusing. Any pointers, can Housing benefit be suspended due to property even though GPC is in Payment?
any suggestions welcome...

Thu 24-Sep-09 02:48 PM by Gareth Morgan

Is the issue one of capital or, as I suspect, that she is claiming HB on a house that she used to own?

In that case she has to jump all the hoops under the 'former owner rule'.

The local authority has to reach a decision based on the specific facts of each case and must apply the test to the particular circumstances.

In general, a person’s own beliefs and perceptions as to whether they could have avoided selling their home are not really relevant.

Consequently, if she thought that in her particular circumstances she had no other option but to sell, so as to remain living in her home, but in actual fact there were other feasible options available that she had not considered, then the Former Owner Rule would still apply.

The onus is on her to explain her reasons for giving up ownership as well as providing evidence of the situation she was in that led to the sale of her home, such as letters from the lender about action to be taken over arrears etc.

After that you can move on to the issues about renting from a near relative...