Property not used as home
A client may have a property (including boats and caravans) they do not use as a home for themselves or their family. Consider whether that property is a realisable asset. There is an expectation that clients will utilise their own resources to support themselves, including any property that they may own or have an interest in that is not their home property or land on which their home is situated.
Points to consider when determining whether the property should be considered as a realisable asset include:
- What was the property originally bought for?
- What is the client's intention with the property?
- Is the property on the market?
- Is the asking price realistic?
- Is the property listed with a real estate agent?
- Location of property
If the property is a realisable asset you must then decide what effect this has on entitlement to Accommodation Supplement. When assessing the value of any realisable asset (for example a piece of land or a rental property) you will need to calculate the net equity that the client holds in the asset.
In general you should treat any realisable asset the way you would 'cash assets'. If the client's combined cash assets and realisable assets exceed the asset threshold then Accommodation Supplement cannot be granted.
Exception
A client's net equity in the former family home may be disregarded for a period of time.
For more information see:
Legislation
- Accommodation supplement: refusal, reduction, or cancellation of grant in certain circumstances section 69 Social Security Act 2018
- Accommodation supplement: Assets requirements regulation 15 Social Security Regulations 2018
