Does client need to claim UC?

My client had a local authority property and purchased a house in 2018, which he subsequently moved into. He was advised to hand the keys back for the rental property but didn’t. He then decided to move back into the rental property in July this year to be closer to family/friends. He has now been hit with an overpayment of HB which he has accepted. However, he’s been told that he now needs to claim Universal Credit for the rent (the owned property is disregarded). My questions is, as the HB award continued (rightly or wrongly), are the LA correct in advising him to claim UC or should the HB claim continue? My thoughts are that as he didn’t have a valid HB claim, he must claim UC.
http://dlvr.it/RkfTCp

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