Rental income to affect carers allowance?

Married couple, he works full time, earns approx €40K gross yearly. She has not worked for 2 years+, recently awarded carers allowance, having applied over a year ago. No other social welfare payments received by either of them. (She had no income at all for 1 year approx).

Since the application for carers went in, this couple moved from the family home (mortgaged, in substantial negative equity) to a house owned by his father, mortgage free.

The house they moved from is now empty, they continue to meet the monthly mortgage repayments, if they rent it out will she lose the carers allowance given the additional rental income they would receive?

No, the rent will not impact the assessment.

You looked at the deemed income generated by the net asset value. The house is in negative equity, no net asset value so no deemed income