Local Housing Allowance (LHA) was introduced nationally and changed the way housing benefit is calculated for private tenants. It is applied to the calculation of housing benefit based on the size of the tenant’s property and the area they live in. The amount of LHA paid may be lower than your actual rent as it is not directly related to the rent charged. The rate of LHA that is being received will be reviewed on an annual basis.
LHA rates are reviewed annually rather than monthly and the claim is updated in April each year by either the lower of the previous September's consumer price index (CPI) or the previous September's 30th percentile figure.
The LHA rate may change mid-year if there is a change of circumstances that affects the size allowance, for example if someone moves in or leaves the household. You must tell the council if your circumstances change. Additionally from April 2013, we will be able to review LHA cases where there has been a change in rent since the last annual review.
Following a four-year freeze on the rates of local housing allowance, an increase of 1.7% (CPI) had been announced for 2020/21. However, in response to the national crisis, the rate from April 2020 was increased to the 30th percentile of local rents (subject to the maximum LHA rates) as determined by the Valuation Office Agency. The rates for 2021/22 remained at April 2020 levels, and the rates for 2022/23 will be maintained at the elevated cash rates agreed for 2020.
Local Housing Allowance (LHA) only affects privately rented accommodation. Rather than referring your rent to the rent officer, benefit will be based on the number of rooms required.
LHA does not affect the following tenants:
Payments of LHA will be paid direct to tenants by BACs and will no longer be payable to the landlord except in cases where the council feels that the tenant is vulnerable. If we make the decision to pay the landlord, it will be reviewed on a regular basis to confirm that it is still appropriate to pay the landlord.
If you are the landlord , to enable us to pay you by this method you need a bank account that accepts BACs payments. Please complete the landlord BACs online form.
Local Housing Allowance (LHA) is based on the number of rooms in a property and the area that you live in. Below is a guide to how many rooms you will be allowed.
You will be allowed one bedroom for each of the following:
From April 2011 the maximum amount you can get is the rate for a four bedroom property. If you rent a larger home you will only get LHA up to the maximum level for four bedrooms and it is likely that the LHA won't cover all of your rent.
From April 2017 the size criteria rules also include:
The number of living rooms, kitchens and bathrooms is ignored as it is assumed that all tenants are entitled to these.
If you are single with no dependant children and are aged under 35 you will only be entitled to the shared room rate even if you occupy something larger. The shared rate will be based on properties where the tenant has exclusive use of one bedroom and the tenancy provides for him to share the use of one or more of the following:
The above rules will not apply to single tenants who have the Severe Disability Premium in their benefit assessments. They will be entitled to one bedroom rate of LHA regardless of the size of their property. Care leavers under 22 years old (25 from 31 May 2021) will also receive the rate of LHA for a one bedroom property.
In addition, single tenants between the age of 25 and 35 who have spent three months or more in a specialist hostel whose main aim is to provide accommodation, care support or supervision with the aim of resettling or rehabilitating in the community, or ex-offenders who are currently subject to an active MAPPA arrangement, will not be subject to the restrictions. (From 31 May 2021, the lower age limit of 25 is reduced to include anyone between the age of 16 and 35).
From 1 October 2022 there are two additional exemptions from the shared room rate:
For more details about local housing allowance, to calculate your bedroom allowance, or to find out what rate is applicable for you, please visit the Valuation Office Agency website
If you have an enquiry about benefits, send a message to the Benefits Team
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