Local Housing Allowance
Local Housing Allowance (LHA) is the new name for housing benefit for tenants in privately rented accommodation which came into effect on 1 April 2008.
Contents
- What is the Local Housing Allowance?
- Why was the Local Housing Allowance introduced?
- Who is affected by the Local Housing Allowance?
- What happens if the landlord increases rent?
- How will the Local Housing Allowance be paid?
- Previously the rent was paid to the landlord, can this continue if the claimant does not want the money paid to them?
- Who is not affected by the Local Housing Allowance?
- Summary of Local Housing Allowance
- Local Housing Allowance Rates
- Do you or your partner have a carer who stays overnight in your home?
- Changes to Local Housing Allowance from April 2011
What is the Local Housing Allowance?
Local Housing Allowance (LHA) is the new name for housing benefit for tenants in privately rented accommodation which came into effect on 1 April 2008.
LHA is a flat rate allowance based on the size of household and the area in which a person lives. There are no changes to the entitlement rules - this will be based on a person's income and savings and proof of a valid tenancy. Payment will normally be to the tenant, who will then pay the landlord.
Each local authority will be divided into Broad Rental Market Areas (BRMA). Rent Officers will set individual LHA rates for each BRMA. These will be published by the local authority so that landlords and prospective LHA customers can be clear about the amount of rent that LHA will cover.
Prospective tenants will be able to shop around with their allowance. If they find a property they like with a rent that exceeds their LHA they will need, as they do now, to make up the difference themselves. But if they find somewhere with a rent below their allowance, they will be able to keep the difference up to a maximum of £15 per week.
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