Can You Get Universal Credit If You Own a House

Can You Get Universal Credit If You Own a House

Universal Credit is a benefit designed to support individuals and families with their living costs, combining multiple legacy benefits into one single monthly payment. One of the common questions people ask is whether owning a property affects their eligibility for Universal Credit. The answer is yes, you can still get Universal Credit if you own your own home, but the details of your circumstances will determine how much you receive and what support you are entitled to.

Understanding Universal Credit and Property Ownership

Unlike Housing Benefit, which is more directly linked to rental payments, Universal Credit is a broader benefit intended to help with a range of living costs. It is available to people who are out of work, on a low income or unable to work due to health reasons. Owning your home does not automatically disqualify you from receiving Universal Credit. What matters most is your total income, savings, and whether you meet the general eligibility rules.

The government does not expect people to sell their main residence to qualify for Universal Credit. However, the value of any additional property, savings or investments you have may be considered when calculating your entitlement.

What Counts as Capital and How It Affects Your Claim

Universal Credit has specific rules about capital. If you have savings or capital of more than sixteen thousand pounds, you will not usually qualify for Universal Credit. This includes money in the bank, investments, and the value of any property other than your main home. If you own just one property which you live in, the value of that home is not counted as capital for Universal Credit purposes.

However, if you own additional property such as a second home or a buy to let investment, the value of that property could be treated as part of your capital. In that case, the Department for Work and Pensions may expect you to sell the asset or use the income from it before paying Universal Credit. If the additional property is up for sale, there may be some temporary allowances made, but ultimately these assets can reduce or eliminate your entitlement.

Help With Housing Costs If You Have a Mortgage

If you own your home with a mortgage and are receiving Universal Credit, you may be able to access help with the cost of the interest on your mortgage through a support scheme called Support for Mortgage Interest. This is not part of your regular Universal Credit payment. Instead, it is a loan which helps cover some of your mortgage interest payments, but not the capital repayment. This loan must eventually be repaid, usually when the property is sold or ownership is transferred.

To qualify for Support for Mortgage Interest, you must have been receiving Universal Credit for a continuous period of at least three months. The support is limited to a certain loan amount and is based on a standard interest rate, not your actual mortgage rate. It also does not cover any arrears or missed payments from before you started receiving Universal Credit.

How Income and Household Circumstances Are Assessed

As with all Universal Credit claims, your total household income is assessed each month to determine your entitlement. This includes earnings from work, pension income, maintenance payments, and income from savings or investments. If you own your home outright and do not have housing costs, you will not receive the housing element of Universal Credit, but you may still be eligible for other parts of the benefit depending on your financial needs.

The number of people living in your household, whether you have children or disabilities, and whether you care for anyone will all affect how much you receive. The system adjusts monthly to reflect changes in your circumstances, which is why accurate reporting is essential.

Property Ownership and Work Incentives

Universal Credit is designed to support those who are working as well as those who are not, so owning a home is not seen as a barrier to employment or benefit eligibility. If you have a mortgage or financial obligations related to your property, the system is intended to provide some support, although it may not cover all expenses. The aim is to provide a financial safety net that encourages people to work where possible, while offering stability and predictability for homeowners facing periods of low income.

It is also worth noting that some people choose to apply for Universal Credit during short term financial setbacks, such as redundancy or illness. In such cases, owning a property does not prevent you from applying, and support may be available while you look for work or recover.

Final Thoughts

Yes, you can receive Universal Credit if you own your home, as long as you meet the overall eligibility rules and do not exceed the savings threshold. Your main home is not counted as capital, and support with mortgage interest may be available after a qualifying period. Whether you are working, in between jobs, or experiencing a change in circumstances, Universal Credit offers a flexible support system designed to help with essential living costs. Understanding how property ownership fits into the system can help you make informed decisions and access the help you need during challenging times.