Housing Benefit

[Rosiek]

I have applied for housing benefit and been refused.
I am a single mother with three kids who are 19, 15 and 13 - the eldest is at uni. I am divirced and my ex-husband lives in the family home, whilst I rent elsewhere. I left the family home after suffering years of abuse. The house is currently for sale.
I work part-time and am studying for an M.A. part-time at my own expense.
I have been told that because I have capital in the house, I cannot claim for help with my rent. This is capital that is not liquid and that i cannot use to help either myself or my children at this time. Is this a correct decision? To I have any right to appeal?