HB can only be paid on the new home once the claimant has moved in. There are some exceptions and sometimes some arguments around what constitutes “moving in”, but these don’t appear to be a factor from what you have said in your post.
I am afraid, therefore, that not only is it unlikely that you can put forward an argument for payments on two homes, but the LA has actually paid your client too much and there should be an overpayment.
Whether the overpayment is recoverable from your client will depend upon the detailed circumstances of the case, there may an argument for LA error as the LA was also the landlord.
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