Owning a home on benefits

Hello! I am in my 40s and have been ill since my teens. I live with my parents (I was turned down for social housing and cannot afford to rent privately in this area on housing allowance). I claim contributions based ESA (support group - no income related top up at all ) and PIP. My parents have been considering buying a freehold house in my name with some money they have inherited. I assume that as I'm not currently claiming any means tested benefits this will be ok. However, I have a few concerns. One is that for some reason the DWP carries out a means test assessment on me every year (apparently this is in case I want to claim any means tested benefit in the future) so I will need to tell them about the house even though it's not relevant. The other is that on paper, the house sounds too big for me. It has 3 bedrooms (2 tiny 6 ft sq bedrooms and one 8ft sq bedroom). The house is in fact cheaper than 2 bed houses in this area which is why my parents have looked at it. There are no 1 bed houses around here. However, I am worried that the DWP could end up penalising me for having spare rooms even though they are tiny as potentially they could be used to generate income (although I would be too ill to do this). I am aware that if I was moved into the WRAG at some point in the future, I would end up on a means tested benefit so my situation would be different. Do you think I have anything to be worried about re owning my own home? Are there any issues we need to consider? Thank you.

Thank you for your help. The reason that I don't get any income related ESA is that the DWP worked out that I would receive more money on contributions based ESA than income related ESA because I have some savings which reduce the amount of income related ESA I'm entitled to.

Maybe Gordon can correct me if I'm wrong here, surely if you get income related benefit then you qualify for the warm home related benefit each winter, spectacles, prescriptions and dentistry? Also perhaps council tax benefit. Not sure you see if you qualify for those on the benefits you get now?

So what I'm saying here is.... when you get your property you may need to use your savings to purchase beds etc etc and it would then put your savings under and you'd qualify for those benefits.

We unfortunately lost the property as someone else put in a higher offer but we’re looking for another one. Judy, yes you’re right, I think. Once I’ve spent just a little of my savings on furniture, it definitely would be beneficial to switch back to Income Related ESA. I might even get the Severe Disability Premium (as I get PIP) if I live alone. However, what concerns me a bit is whether they will switch me over to Universal Credit if I ask to do this, particularly as I’m living on a county border and could end up living under a different authority. I don’t know what the rules are on this. Does anybody know?