Local Housing Allowance (LHA)
Local Housing Allowance (LHA) was introduced nationally from 7 April 2008. LHA is used to calculate most private sector claims.
Local Housing Allowance
The LHA looks at the location and the size of the accommodation rather than the rent being charged. In particular LHA rates take into account the number of bedrooms required by the claimant and their household but only up to a maximum of four bedrooms. Claimants with similar circumstances are generally entitled to the same rate of benefit regardless of the rent they pay.
The LHA places a cap on the maximum amount of Housing Benefit claimants can receive for each rate. For example the maximum weekly rates are:
- Shared Accommodation Rate - £250
- One bedroom Rate - £250
- Two bedroom Rate - £290
- Three bedroom Rate - £340
- Four (or more) bedroom Rate - £400
Important information
If a rate is lower than the maximum cap amount the lower rate is the maximum amount of Housing Benefit we can pay. For example, if a two bedroom rate is £260 the maximum we can pay in Housing Benefit is £260 - not £290
|Back to topRates
The rate of LHA that is used to calculate a claimant’s Housing Benefit depends on the number of people living in the household. Further details are available in our size criteria section.
LHA rates are be set by the Valuation Office Agency each month. These rates are available on our LHA rates page.
The rates set by the Valuation Office Agency each month are the maximum amounts. The actual amount a claimant will receive depends on their income, savings and circumstances.
Housing Benefit is based on the rate of LHA that has been set that month and will be reviewed after a year unless there is a change in the rate the claimant is entitled to before then.
|Back to topMethod of payment
Housing Benefit under the LHA rules is normally paid directly to the claimant. In some circumstances we may decide to pay the landlord. Further information on the payment of Housing Benefit under LHA rules is available on our Payments section.
|Back to topClaimants unaffected by LHA
LHA rules apply to deregulated private tenancies. They do not apply to:
- Tenants who live in house boats, mobile homes or caravans
- Tenants whose landlord is a registered Housing Association
- Tenants who have regulated tenancies or registered rent
- Tenants whose rent includes a substantial sum for board and attendance
- Tenants whose landlord is a charitable or voluntary organisation who provide care support or supervision
- Tenants who pay rent to Haringey Council
Further information
Further information about LHA is available on our Frequently Asked Questions (FAQs) section.
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