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main content Local Housing Allowance (LHA)

What is Local Housing Allowance?

Local Housing Allowance is a new way of working out how much Housing Benefit you could get.

The amount still depends on your income and savings, it is only the maximum eligible rent that is changing.

Current Local Housing Allowance rates.

Who will LHA apply to?

LHA affects anybody who lives in private sector rented accommodation from the 7 April 2008.

If you are already receiving Housing Benefit then the new rules will not apply until you either move address or have a break in your claim.

Who is not affected by LHA?

LHA does not affect if you are:

• a council tenant
• a housing association tenant
• a tenant living in supported housing
• a crown tenant
• a private tenant whose tenancy began before 15 January 1989  
• a tenants who lives in a caravans, houseboat or hostel
• a tenant who lives in Board and Lodge accommodation

If you are in one of these groups you will still have your Housing Benefit worked out under the existing rules.

What happens if I am already receiving Housing Benefit?

Your benefit will stay the same. However, if you move address or stop claiming for more than a week, we will then work out your new claim under the LHA rules.

How will the LHA work?

The maximum amount of Housing Benefit you can receive will be set beforehand by the Rent Service. It will not depend on the amount of rent you pay. The maximum amount you receive will be the same for every same-sized household in the area you live in, no matter what differences there are in the actual rent charged.

How are the rates set?

The Rent Service has divided the country into Broad Rental Market Areas (BRMA).These are made up of a number of neighbour hoods and in each area there will be a wide mixture of property types within a reasonable distance of various public services e.g. health, education, leisure, personal banking and shopping.

From the information that is collected, the rent amount that is at the middle point of rents charged in each area will be the figure that is used as the LHA rate. There will be a number of different rates for each area based on the number of rooms each household needs.

The Rent Service will continually monitor the local rent market and update the LHA rates for each BRMA every month. The figures may go up, go down or stay the same.

The Benefit Office will be given the LHA rates every month and your postcode will determine which BRMA you live in.

How will you work out how many rooms?

We will work out the number of rooms you need according to the Housing Benefit rules. If you live in one room and share some facilities (e.g. a kitchen or bathroom) with other people, there is a special LHA rate.

If you are under 25 and live on your own, you will only be entitled to the shared room rate.
If the above does not apply to you, we will work out your number of rooms shown below:

We allow one bedroom for each of the following:
• adult couple
• any other adult who is 16 or over
• two children of the same sex until they are 16
• two children who are younger than 10
• a child (someone under 16)

Each person is only counted once, in the first group they would come into.

We do not count everyone in your house when working out how many rooms you need. We count you and your partner; as well as any children or young people you are responsible for. If you have any other adults who are not boarders or lodgers, we also count those. However, we do not count foster children or joint tenants.

Note: The number of living rooms, kitchens and bathrooms is ignored for the purposes of size criteria.

Which rate will apply to me?

Your maximum Housing Benefit will be the LHA rate for the number of bedrooms you need in the BRMA you live in. The Rent Service will publish the LHA rates each month. The rate that applies to you will depend on the date you claim. This will normally be the date that we receive your claim form or the date that you first asked to claim Housing Benefit, provided you send the form back within one month. It will not matter in what month we pay your claim as the rate is determined by the month in which you apply.

What happens if my rent is higher than the LHA I am entitled to?

The maximum benefit you will receive is the LHA rate for the size of your household, in your area for the month you claim. If your rent is more than this figure, you will need to make up this shortfall yourself.

If your circumstances are exceptional please read Discretionary Housing Payments or contact us.

What happens if my rent is lower than the LHA I am entitled to?

Your maximum Housing Benefit is the weekly rent you pay plus £15 a week. This is the maximum the Government has decided can be used to work out Housing Benefit. Your maximum Housing Benefit will not be more than your LHA rate.

More questions about Local Housing Allowance