Can you get Universal Credit if you own a house?

Universal Credit (UC) is a financial support program that anyone over the age of 18 can access in the UK. It's a single monthly payment that can help with your living costs, provided you meet certain criteria.

In this article, we examine how owning a house might affect your eligibility for Universal Credit.

Can you get Universal Credit if you own a house?

Yes, you can still receive universal credit if you own a house. Home ownership doesn't affect the standard rate you receive within your specific band.

Owning a property however, can impact your rights to further benefits. Savings and assets directly affect the total amount you can claim from the government. Other factors include:

• Rental income: Receiving income from a secondary home can reduce the amount of credit you're able to claim.
• Shared ownership: If you own a property through a shared ownership scheme or housing association, your eligibility and entitlement to Universal Credit may differ to someone who owns their home outright.

Can you claim Universal Credit if you have a mortgage?

Yes, you can claim Universal Credit if you have a mortgage. UC is a means-tested benefit, which means that your borrowing capacity depends on other factors, like income - not just home ownership.

If you're receiving Universal Credit and need help making your mortgage interest payments, you might be eligible for a Support for Mortgage Interest loan. The loan rolls out once you've received UC for three months in a row.

Does receiving rental income affect your Universal Credit claim?

Yes, if you earn rental income from a secondary home, it may affect your eligibility for Universal Credit. Your rental income, minus certain property-related expenses, is treated as unearned income. This reduces the amount of UC you can receive.

To ensure an accurate assessment and prevent overpayments or penalties, report all of your income (including rental income) when applying for UC.

What if I get other benefits?

The following benefits will be deducted from your Universal Credit:

• Income-based Jobseeker’s Allowance
• Income-based Employment and Support Allowance
• Carer’s Allowance
• Bereavement and widow’s payments
• Maternity Allowance
• Industrial Injuries Benefit
• Income received from an ex-husband or ex-wife.

Your eligibility for receiving Universal Credit is unaffected by Disability Living Allowance and Personal Independence Payments.

How much Universal Credit can I claim as a homeowner?

Whether you're a homeowner or not, you're entitled to a standard Universal Credit rate...

Standard Universal Credit rates (per month)

Your standard monthly Universal Credit payment will likely be one of the following rates:

You're also eligible for a further housing benefit. This is called a Housing Payment. This payment can help you pay other housing costs, such as:

• Rent to a private landlord.
• Rent and service charges if you rent from a housing association or local authority.
• Service charges if you or your partner own the property you live in.

If you need further help making housing payments, you can also apply for a Discretionary Housing Payment (DHP.

Once you’ve started claiming Universal Credit, you need to report if and when there are any changes to your circumstances, otherwise your benefits may end.

Your income and Universal Credit

What CAN impact the amount of Universal Credit you get is your income. You can earn a certain amount of money every month without it affecting the UC you receive. This is called a work allowance.

Your work allowance can change depending on the type of support you receive for housing:

• If you're getting a housing payment as part of your Universal Credit, or claiming housing costs through the Local Authority because you're in supported or sheltered housing: £379
• If you don't receive housing support: £631

For every £1 you earn above your work allowance, you get 55p less in Universal Credit.

If you don't receive housing support (making your work allowance is £631), you're 25 or over and single (Universal Credit rate of £368.74), the maximum you can earn before receiving no UC is £1301.43.

Can Universal Credit pay for service charges?

Yes, you can claim Universal Credit to pay for a service charge or housing payment related to your property.

When can I not claim Universal Credit as a homeowner?

Your Universal Credit payments as a homeowner can be impacted by the following:

• Your income exceeds the maximum threshold set by the government for your household size and circumstances.
• You have savings or capital above the allowable limit (£16,000).
• You're not a resident of the United Kingdom, or you don't have the right to work or live in the UK.
• You're in full-time education or are a student (there are some exceptions and specific rules for students).
• You're receiving certain other benefits, like income-based Jobseeker's Allowance or Income Support.
• You're not meeting the work-related requirements or responsibilities if you have a work capability assessment (for individuals with limited capability for work).
• You haven't provided the necessary documentation or information to support your claim.

Summary: Need help? Apply online today

Universal Credit is there for those who need it - even if you're a homeowner! If you qualify for UC, you can apply here on the government website. You just need:

• Your bank or building society account details
• An email address
• Access to a phone
• Information about your earnings
• Your housing situation
• Any investments or savings
• Information on childcare costs
• Information about any disability or condition that affects your ability to work

Good luck!