Local Housing Allowance (LHA)

The way that Housing Benefit is paid to customers who rent private accommodation changed from 7th April 2008. The new scheme is called Local Housing Allowance (LHA) and has been in place for a number of years in some 'pathfinder' authorities in England, Wales and Scotland. 

Each local authority will be divided into Broad Rental Market Areas (BRMA) which will be set by The Rent Service.  On a monthly basis the Rent Service will publish individual Local Housing Allowance (LHA) rates for up to 5 bedrooms in each of the BRMA areas.

It has been proposed that Royal Borough Windsor & Maidenhead will have 2 BRMAs and the LHA rate payable will depend on which area the customer lives in.

These figures will be published by the council on a monthly basis so that landlords and prospective LHA customers can find out the amount of rent the LHA will cover each month.

If a customer finds a property that they like with a rent that exceeds their LHA they will need, as they do now, to make up the difference themselves. But if a customer finds somewhere with a rent below their allowance, they will be able to keep the difference up to a maximum of £15.00 a week.

The amount of LHA is dependant on the following factors:

  • The number of rooms the customers needs 
  • The area that he or she lives in
  • Whether someone lives with them who is not a dependant

The number of rooms that the tenant qualifies for (the size criteria) are one bedroom for every:

  • Adult couple (including civil partners) 
  • Adult aged 16 or over
  • Any two children under age 10
  • Any two children of the same sex aged 10 to 15
  • Any other child
  • Joint tenants receive a proportion of the rate payable for a property of the size applicable to all the tenants together.

Below are some examples of how many bedrooms certain households would qualify for:

1.  A couple, with a 16 year old daughter, 11 year old son and two 3 year old twins would qualify for a four bedroom home. 

2.  A single mother, who has a 5 year old son and 3 year old daughter, would qualify for a two bedroom property.

3.  A couple who live with an elderly relative and their 7 year old daughter; will qualify for a 3 bedroom property.

  1. What is Local Housing Allowance?
  2. Who will be affected by the Local Housing Allowance?
  3. How does LHA affect landlords?
  4. Why has LHA been introduced?
  5. When and where will LHA rates be published?
  6. How are Local Housing Allowance payments worked out?
  7. What about customers under 25?
  8. How are single customers aged over 25/ couples with no children affected?
  9. What is the length of Local Housing Allowance Awards?
  10. Will mid-year rent increases be taken into account?
  11. How will payments of Local Housing Allowance be made?
  12. Will customers have any appeal rights?
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