How is the LHA calculated?
Who decides LHA rates?
Where and when will LHA rates be published?
How will LHA areas be decided?
Will there be any right of appeal against the levels of allowances for each Broad Rental Market Area determined by the Rent Officer?
What if the customer’s benefit is lower than their rent?
What if there is provision for a contractual rent increase in the middle of the year?
LHA Rates
How is the LHA calculated?
It is based on the 30th percentile for that particular area depending on the size of the property. Basing the LHA on the 30th percentile means that three in ten properties of that size in the area will be affordable within the LHA amount the customer receives.
Who decides LHA rates?
Having set the BRMAs, Rent Officers are responsible for calculating the LHAs for different sizes of property in that area. Once the Rent Service has determined the LHA rates for an area, an individual customer’s benefit will depend on their age and the size of their household. For example a person under 25 will receive the shared room rate whilst a couple with one child will receive the two-room rate.
Where and when will LHA rates be published?
Rates will be published at the end of the month before the month that they come into force. For example, the April rates will be made available at the end of March. These rates will be available to view on our LHA Rates pages.
How will LHA areas be decided?
Each local authority area will have at least one Broad Rental Market Area (BRMA) within which a set of LHA rates will apply. Each BRMA will include a mix of accommodation as well as facilities such as shops, hospitals and schools. Basingstoke and Deane have four BRMAs - Basingstoke, Reading, Newbury and Winchester.
Will there be any right of appeal against the levels of allowances for each Broad Rental Market Area determined by the Rent Officer?
No, because the BRMA covers an area which includes other tenants, any appeal received could ultimately change the LHA rate for tenants who have not appealed and are content with their allowance. This is because any decision would have to be implemented to all tenants receiving that BRMA / LHA rate.
What if the customer’s benefit is lower than their rent?
You may ask them to make up any shortfall out of their other income. Alternatively, the customer may also choose to move to cheaper accommodation.
However, if the customer previously paid their rent without any support from HB in the past year they will be entitled to an initial 13 weeks of benefit that will cover the full rent, without any restrictions.
What if there is provision for a contractual rent increase in the middle of the year?
The rate of benefit that your tenant receives is a flat rate allowance based on the LHA rate in effect for your area rather than the rent that you actually charge them. This means that your tenant’s LHA rate will not change even if the rent you charge them changes. However, their LHA rate will be reviewed annually.
