Benefits: Local Housing Allowance-Information for Landlords

About Local Housing Allowance

What is Local Housing Allowance?

Local Housing Allowance (LHA) is a new way of working out Housing Benefit for people who rent from a private landlord.

LHA is for people on a low income who rent from private landlords and is based on the number of rooms, up to a cap of 5 bedrooms, the household needs, not how much the rent is.

In summary

  •  LHA affects new claims, breaks in claim and change of addresses from 7 April 2008
  • It applies to most private sector accommodation with some exceptions ( see below)
  • The Rent Officer will no longer value individual properties - this means there will be no more rent restrictions
  • In most cases LHA is paid directly to tenants 
  • Safeguards will be in place to protect you from tenants who are vulnerable and unlikely to pay.

How is it calculated ?

The rent figure that is used for the Housing Benefit calculation is based on the area your tenant lives in known as the Broad Rental Market Area and
who lives with them known as the Size criteria.

Date Last Reviewed: 31/03/2011