Local Housing Allowance

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What is Local Housing Allowance?
Local Housing Allowance (LHA) is a way of working out and paying housing benefit for people who rent from a private landlord. It was introduced on 7th April 2008. With LHA, benefit will be based on the number of bedrooms you need and not how much the rent is.

There is no change to the housing benefit entitlement rules which will still be based on a person’s income, savings and proof of rent, etc.


Who is affected by Local Housing Allowance?

  • Anyone who lives in private rented accommodation and makes a new claim for housing benefit
  • Claimants who change address and rent their property from a private landlord
  • Claimants in privately rented accommodation who have a break in their claim

 

Who is not affected by Local Housing Allowance?

  • You are not affected if :
  • You rent your property from your local council
  • You rent your property from a housing association
  • You have a tenancy that started before 15 January 1989
  • Your rent has been registered with the rent officer as a 'fair rent'
  • You live in a caravan, mobile home or houseboat
  • Your accommodation is provided by a county council, housing association, registered charity or voluntary organisation and you are provided with care, support or supervision
  • You live in board and lodging accommodation and the rent officer decides that a substantial part of the rent is for board and attendance.

If you fall into one of the above groups, your housing benefit will not be calculated under LHA rules.

How is housing benefit calculated under Local Housing Allowance?
The amount of benefit you can get under LHA rules is based on :

  • Who lives with you and the number of bedrooms your family needs
  • The area you live in
  • The amount of money you have coming in
  • What capital / savings you have

The LHA rates may be different for each area and will be set by an independent rent officer, based on local rents. We will publish the LHA rates every month. These rates will determine the maximum amount of benefit you may get. Visit our LHA Rates page to download the rates for April 2008.

What is different about Local Housing Allowance?