UC and other property as capital

Hi

I have a client who has requested an appeal regarding the start date of the overpayment.
My client has a property but decided to move in with her mother as her mother’s health deteriorated.  She then decides to rent her property whilst she is temporarily staying at her mother’s and the tenancy commenced on 17 October 2020.

The DWP have advised her that an overpayment has occurred from the end of September 2020 as her property is deemed as capital.  Hence she is no longer entitled to UC.  My client argues that her first part payment of rental income was received in December 2020; so she believes the overpayment should be reduced by 2 months of UC payments. 

Do you think she has a case?  I cannot find it anywhere on the ADMs where it states at what point is the other property deemed as capital i.e. date the tenancy agreement started or the date the landlord receives a payment?

Any advice is welcome.

Income from the capital is irrelevant. The overpayment will begin from the start of the Assessment Period in which she moved out, as from that date the property is no longer ignored as capital.

EDIT: Unless of course she did not originally intend to stay out of the property for very long and could still be said to be “occupying” the property. In that case, the overpayment would begin from whenever she ceased “occupying” the property as her home.

Charles - 09 December 2021 03:29 PM

.. In that case, the overpayment would begin from whenever she ceased “occupying” the property as her home.

which would presumably be when she moved her belongings out.

Thank you both for your responses.  Much appreciated and as I thought looks like the overpayment will be from the date she moved her belongings