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Local Housing Allowance
Local Housing Allowance (LHA) is the new name for housing benefit for tenants in privately rented accommodation which will come into effect from 1st April 2008. Several Councils have already implemented and tested the scheme on a trial basis.
The idea is to simplify the rules and to allow tenants more freedom – both financially, and to choose where they live.
LHA is a flat rate allowance based on the size of household and the area in which a person lives. The amounts of LHA are set by the Rent Officer.
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 £15.00 per week.
Payment of LHA and Safeguard Policy
Generally, payment of this allowance will be made directly to the person claiming and not to the Landlord. However there will be exceptions to this. The Safeguard Policy (54.9KB) explains the circumstances where payment can be made to the Landlord directly.