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Introduction

Local Housing Allowance (LHA) is designed to be easy to understand and it is simple to work out what LHA rate would apply.

Who decides the LHA rates

They are decided each year by the Valuation Office Agency (VOA). They gather market evidence about rents in particular areas, known as Broad Rental Market Areas (BRMAs). The LHA rates are given for numbers of bedrooms.

More information about LHA including what rate you are eligible for and how it is used to calculate Housing Benefit can be found on the GOV.UK Housing Benefit website. You can find out more about how the VOA works out the LHA rate for where you live from the VOA LHADirect website.

What the LHA rates are used for

By us

When we work out your Housing Benefit (HB) entitlement, we have to use a level of rent (known as eligible rent) as part of that calculation. The LHA rates give us a figure to work out the eligible rent that we will use.

LHA rates vary from year to year, so the date you claim HB can affect the amount of rent we used to work out your HB and therefore the amount of HB you get. The year runs from April to March.

By you

LHA rates can also be used by you to see if the cost of rent of a home you are thinking of moving into is comparable to the LHA rate you are entitled to and whether there is likely to be a shortfall in the HB we award. This allows you to make more informed decisions about the type of accommodation you move into and whether you can afford it.

What is the LHA rate for where you live?

LHA rates are dependent on the number of bedrooms you are eligible for and the LHA rate in the postcode area you live in. Take the following two steps to find out the rate for the address.

  1. Find out how many bedrooms you are eligible to claim Housing Benefit for using the LHA bedroom calculator
  2. Find out the LHA rate which applies to you by using the LHA rates search tool and search by postcode or by Council (local authority) area.

The LHA rates search tool will find LHA rates for the last 2 years. If you need details of the LHA rate for previous years please contact us and we will send these to you.

Shortfalls

If there is a shortfall in the rent charged and the maximum eligible rent we will use, you will have to decide whether you can afford to pay the difference out of your income or seek alternative accommodation.

You may be able to get discretionary housing payment if there is a shortfall, however, we will not be able to tell you before you make a claim whether you can get this.

If you are a single person under 35 you are normally only entitled to the shared room rate of LHA. There are exemptions from this which could mean you are entitled to the higher one-bedroom self-contained rate. The LHA rates search tool on the VOA website will tell you if you fall under these exemptions.

Paying Housing Benefit

We will normally pay HB to the tenant. Further information about who we pay HB to can be found on our Housing Benefit payments to private tenants page.