Local Housing Allowance
ListenThe way that housing benefit is paid to claimants in private rented accommodation changed with effect from 7 April 2008 for Bracknell Forest Council.
- What is the Local Housing Allowance?
- Who is affected by the Local Housing Allowance?
- How are Local Housing Allowance payments worked out?
- What is the length of Local Housing Allowance payments?
- How are payments of Local Housing Allowance made?
- Do I have any appeal rights?
What is the Local Housing Allowance?
Local Housing Allowance (LHA) is the way of working out housing benefit for people who live in privately-rented accommodation.
LHA is a flat rate allowance based on the size of the household (not the size of the property) and the area in which a person lives.
Who is affected by the Local Housing Allowance?
Claims made on or after 7 April 2008 or if you have been getting Housing Benefit before that date then LHA will only apply if you change address or have a break in your claim.
How are Local Housing Allowance payments worked out?
Each local authority is divided into Broad Rental Market Areas (BRMA). Bracknell Forest Council has three Broad Market Rental Areas. The Rent Service sets individual Local Housing Allowance (LHA) rates for up to a maximum of four rooms in each of the BRMA areas.
The LHA rates will be published by the local authority each month so that landlords and prospective LHA customers can find out the amount of rent that the LHA will cover. This also shows how to work out the bedroom rate that will apply.
If a customer finds a property that they like with a rent that exceeds their LHA they will need to make up the difference themselves. But if a customer finds somewhere with a rent below their allowance, we will only be able to pay LHA up to the amount of rent they have to pay.
What is the length of Local Housing Allowance Awards?
The LHA rate that applies to your Housing Benefit will continue to apply for a year unless there a relevant change in circumstance such as:
- a change in the number of occupiers
- a change of address within the period of the LHA
- if there is a death in the household
How are payments of Local Housing Allowance made?
The payments are normally paid to the customer rather than the landlord. Safeguards will be put in place to protect the vulnerable.
Factors to be considered are:
- if the customer has difficulty managing their affairs
- if it is improbable that the customer would pay their rent.
If a customer and their representative feel they are vulnerable, benefit may be paid to the landlord. An application for payment LHA to your landlord will need to be completed and supporting proof provided.
Benefit can still be paid to the landlord if a tenant falls into arrears of 8 weeks or more. Written proof of arrears will be required and so landlords should ensure they keep detailed records of the rent account.
From 1 April 2011 due to changes to Local Housing Allowance we have revised our Safeguard Policy to allow us to make payments direct to a landlord if the Council considers it will assist the customer to secure a new tenancy or retain an existing tenancy. For a tenancy to be secured or retained it is implicit that the rent should be affordable to the tenant whilst in receipt of Housing Benefit i.e. at the new level of the LHA rate that applies to the tenant. Please see our revised Local Housing Allowance - Safeguard Policy.
There is no right of appeal or redetermination about the levels of Local Housing Allowance (LHA), or Broad Market Rental Areas (BMRA).
There are still appeal rights against to whom payments are made.
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