Local Housing Allowance (LHA) is the way we work out Housing Benefit for tenants renting accommodation from a private landlord. This scheme affects the following:
- All new claims for Housing Benefit for privately rented accommodation.
- Claimants already getting Housing Benefit who change address and move into privately rented accommodation.
- Claimants in privately rented accommodation who have a break in their claim and reapply for Housing Benefit.
How is the Local Housing Allowance calculated?
LHA is a flat-rate rent allowance determined by the Valuation Office Agency based primarily on property location and the size criteria (number of people living there).
England is broken up into a number of Broad Rental Market Areas (BRMA). The Rent Officer sets the level of rents in a BRMA which are published on a monthly basis.
The latest LHA rates are published at the beginning of each month.
The LHA award is valid for one year and will then be reviewed in accordance with the LHA level applicable at the time. The Rent Officer sets the LHA rates based on the median of rents for the area.
IMPORTANT NOTE:
Local Housing Allowance rates to be frozen from April 2012
The Department for Work and Pensions has confirmed that from April 2012 Local Housing Allowance (LHA) rates will be frozen for one year.
All new claims for privately rented properties made at any time from April 2012 to March 2013 will have their Housing Benefit rate based on the LHA figures set in April 2012.
This is to enable them to set a baseline for a full 12 months before the LHA rates will be uprated annually, starting in April 2013, in line with Consumer Price Index (CPI) Inflation as at the previous September
The way we work out Housing Benefit using income and savings is not changing. You will still need to give us details about your income, household and savings and let us know about any changes in your circumstances.
For further information, please contact the Benefit Section on 0161 217 6015 or call into any Stockport Local Direct Centre.