1st UC application how do I report home ownership if I rent it out and rent myself?

How would we correctly put on our UC and childcare credit applications that we own a home and rent it out temporarily and rent a home temporarily as our main residence?

So we bought a flat that we are desperate to sell but can’t (we’ve tried for years at a ton below what we bought it for but if we sold it for less we’d have to pay the mortgage lender the difference in price as there wouldn’t be any equity left) so when we had our second child we rented out our home in desperation and rented our home ourselves. We make no profit from the rental the entire rent pays off all of the expenses related to maintaining the flat. We pay for our rental and everything here so we only own one home (the mortgage flat that we’re renting out) and we only pay for one home (our rented residence) and we make no income from our homes. We’ve never applied for UC but just realised that we qualify for it given how little our income is after going part time to take care of our kids.

So how do we correctly put this on our UC application? And please tell me that we’re not going to be penalised financially for being considered to be double home owners or that we have to claim the rent as income - as we truly want to sell the flat but can’t!