Local Housing Allowance
The new rent allowance scheme for private tenants
Housing Benefit and the Local Housing Allowance (LHA)
Housing Benefit - Housing Benefit is calculated by looking at how much you can afford to pay towards your rent. The amount of Housing Benefit you will receive is your rent minus the amount that you can afford to pay (if anything), this calculation is based on your income. Often we can only make a reduced payment on account until a Rent Officer has sent us their valuations. Under Housing Benefit your award is never more than the full rent charged by your landlord. We usually pay your landlord or agent the Housing Benefit if:
- you ask us;
- we think it is in your best interest; or
- you are in 8 weeks or more rent arrears.
The LHA - The LHA will still be calculated by looking at how much you can pay towards your rent. But instead of taking this amount away from your rent, it will be taken away from a standard LHA figure provided by The Rent Service. We do not have to refer your rent to the rent officer. If the LHA is more than the full rent charged by your landlord or the landlord's agent, you will get up to £15.00 per week more. LHA will be paid to you into your bank account, not your landlord's or their agent, unless we decide you are vulnerable (Please read our vulnerability procedure here). Please note if you do not have a bank account you will need to open an account with one of the high street banks,
The Rent Service will give us the LHA figures, which are standard amounts set according to:
- the number of people living in your home, and
- the number of bedrooms in your home, and
- the rents charged for similar properties in your area.
There are three different areas in the London Borough of Hammersmith & Fulham (LBHF). They are called Broad Rental Market Areas (BRMA). These areas are: Inner North & West, Inner South West and London Central. To see a representation of how the BRMAs affect LBHF then click this link.
Click on the links for the relevant LHA rates for August, September and October 2008, for the London Borough of Hammersmith & Fulham.
You can visit the Rent Services website to calculate how many rooms you would be entitled to or to find out the LHA rates for your postcodes. Click here to do so.
Which landlords will be affected by Local Housing Allowance?
LHA affects any landlord who enters into a deregulated private tenancy agreement with a person awarded Housing Benefit. A deregulated tenancy is one that commenced after January 1989.
Who will not be affected by Local Housing Allowance?
The new rules will 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 as supported housing provided by social landlords, charities or voluntary organisations, who also provide care, support or supervision
- Tenancies in caravans, houseboats or hostels
How much LHA will I get?
You will get a LHA award based on a standard LHA amount for the number of rooms you are allowed. These amounts are set by the Rent Service. Other factors affect how much LHA you are awarded. This depends on:
- Who lives with you and their circumstances
- What money you have coming in
- What savings you have
What if my LHA award is higher than my rent?
In this case your LHA award will cover the full rent charged. You keep the excess difference between the actual rent and your LHA award. At present the most that this excess can be is £15.00 per week.
What if the LHA doesn't cover my full rent
You will have to make up the shortfall between your LHA award and your full rent. If you are experiencing difficulties in paying the difference, you can make a claim for discretionary housing payment (dhp). To find out more about claiming dhp, click on the following link to discretionary housing payments. Please note: The dhp is awarded in exceptional circumstances and having a shortfall in your rent does not mean you will be automatically entitled to a dhp. The dhp is paid from a fixed annual fund and is not awarded to everyone who claims it.
Will I get Housing Benefit or LHA from April 2008?
It depends on the circumstances of your claim at April 2008. If you have an ongoing Housing Benefit claim that started before April 2008, you will still get Housing Benefit. We will still refer your rent to The Rent Service at the start of your claim and then every 52 weeks.
However, if you:
- make a new claim;
- make a change of address claim; or
- have a break in your Housing Benefit claim, you will be paid LHA.
If you have further queries about the LHA then please email us at: lha@lbhf.gov.uk
NOTE: This information may change and will be updated as the ‘Go Live’ date approaches.
