Local housing allowance
What is Local Housing Allowance?
Local Housing Allowance (LHA) is for people on a low income
who rent from a private landlord.
LHA
is based on the broad rental
market area and the number of bedrooms the tenant is allowed, not
how much their rent is. The number of rooms allowed depends on who
lives with the tenant. The new form of benefit called Local Housing
Allowance became available from 7 April 2008.
How much Local Housing Allowance (Housing Benefit) will I
get?
By following 3 steps at the link below, if you are a tenant, you
can work out how much Local Housing Allowance you may be entitled
to.
The amount of
LHA
you will get depends on:
- Who lives with you
- What money you have coming in
- What savings you have
- The number of bedrooms you need
- The area you live in
How will LHA work?
LHA is a flat rate allowance based on the
number of bedrooms you need, not how many bedrooms your home
actually has or how much rent you have to pay. The number of
bedrooms allowed depends on who lives with you as part of your
household.
Generally, one bedroom will be allowed
for:
- every adult couple
- any other adult aged 16 or over
- any two children of the same sex
- any two children regardless of sex aged under
10
- any other child
For example, a couple with two children under
10 would be allowed two bedrooms.
What is Broad Rental Market?
The
LHA
rates are
set by an independent rent officer, based on local rents.
These rates are set each month and are known as the broad rental
market area (BRMA). We will have three
BRMA
’s – Rochdale,
Heywood and Middleton. The
BRMA
for each of these areas may
differ slightly.
We will publicise these rates each month so that landlords
and prospective tenants are clear about the maximum amount of rent
housing benefit will cover. If the
LHA
rate for a tenant is more than
the rent they are charged, they can keep the difference up to a
maximum of £15 a week.
Who is affected by Local Housing Allowance?
LHA
affects
those tenants renting from a private landlord who either:
- Change address on or after 7 April 2008
- Make a NEW claim for housing benefit on or after 7 April
2008
- Have a break in their housing benefit entitlement
Who is NOT by affected by Local Housing Allowance?
The
LHA
rules will
not apply to:
- Local authority tenants
- Tenants of registered social landlords (housing
associations)
- Cases where the Rent Officer judges that a substantial part of
the rent is attributable to board and attendance (Hostel
accommodation)
- Tenants whose tenancies commenced before January 1989
- Protected tenants, such as those in supported housing provided
by social landlords, charities or voluntary organisations
- Tenants with tenancies of caravans, mobile homes, houseboats or
hostels
How will I receive the Local Housing Allowance payments?
Payments of
LHA
(housing benefit) will be made directly to you and it will then be
your responsibility to pay the full rent to your landlord.
Payments will normally be paid directly into a bank
account. If you do not have a bank account, you need to think
about opening a basic bank account with your local bank.
Further information on basic bank accounts is available at the
link below.
Money Made Clear - Information on basic bank accounts from
the financial Services Authority.
Further information
More information on Local Housing Allowance can be obtained at
the links below.
Department of Work and
Pensions - More information on
LHA.
Learn more on an online course
Detailed information by means of an online course can be
obtained by visiting the Meritec/
LHA
website, please follow the
instruction detailed in the table below to gain access to the
course.
| Questions asked |
Details to input |
| Local authority name |
Select Rochdale Metropolitan Borough
Council |
| Name |
Enter firstname surname |
| Department/landlord/CAB |
Enter your department or type the word
General
|
| Password |
LHA (must be in capitals) |
Once your log in details have been entered, click on the
'Course' button to start the course on Local Housing
Allowance.
The
LHA
course
should take approximately 25-30 minutes to complete, there is a
short optional quiz at the end of the package to test your
understanding of
LHA
rules and regulations.
If you have any problems accessing the site or require any
further information on
LHA
, please telephone or
email one of our benefits advisors using the contact details
provided on this page.
Meritec - online Local Housing
Allowance course