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Local Housing Allowance new for 2008 – information for landlords

 

 

What is Local Housing Allowance?

 

Local Housing Allowance is a new way of working out new claims for Housing Benefit for tenants renting accommodation from a private landlord. It also affects tenants already getting Housing Benefit who move into accommodation rented from a private landlord. Local Housing Allowance is being introduced on 7 April, 2008.

 

It is based on:

 

  • The area your tenant lives in
  • Who lives with your tenant
  • What money your tenant has coming in
  • What savings your tenant has

 

It is not based on how much rent you charge.  The change will only affect your tenant if you are a Private Landlord and:

 

  • They rent your property and your tenant makes a new claim for Housing Benefit with a date of claim on or after 7 April 2008

     OR

  • You have an existing tenant that rents your property where they are already claiming Housing Benefit and they have a break in your Housing Benefit entitlement on or after 7 April 2008.

     OR

  • Your tenant changes their address so that they begin renting your property or move into another one of your properties (this includes a change of rooms) and they make a new claim for Housing Benefit with a date of claim on or after 7 April 2008.

    

How much will the LHA be?

 

The maximum amount of LHA will depend on:

 

  • Who lives with your tenant
  • What area you property is in and the rate of LHA set by the Rent Service for the number of bedrooms your tenant requires
  • What money your tenant has coming in
  • What savings your tenant has

 

The LHA rates will be set by The Rent Service each month.

 

Current LHA rates

 

Why is the number of bedrooms in my property important?

 

LHA is based on the number of bedrooms your tenant needs, not on how much rent you charge.  The number of rooms allowed depends on who lives with your tenant.

 

One bedroom required for each of the following

 

  • A couple
  • A single person over 16
  • Two children of the same sex under 16
  • Two children under 10 regardless of gender

Bedroom entitlement calculator for your Local Housing Allowance category

 

How will Local Housing Allowance be paid?

 

LHA is usually paid direct to your tenant.  Your tenant cannot decide to have their LHA paid to you.  It will then be up to you to collect your rent.  We can consider paying LHA to you in exceptional circumstances.  This is called a safeguard.  For more information on the safeguard provision please view the Information Leaflet.

 

The new rules do not apply to:

 

  • Local Authority tenants
  • Tenants of registered social landlords (housing associations).
  • Tenants who have a registered or fair rent
  • Tenancies which commenced before January 1989
  • Protected cases such a supported housing provided by social landlords, charities or voluntary organisations
  • Tenancies in caravans, house boats or hostels
  • Claimants with a continuous claim from before 7 April 2008 (until there is a break in their claim)
  • They also may not apply if the rent includes an amount for meals.

 

Where to get more information

 

If you want to know more about the changes and how they affect you:

 

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