Local Housing Allowance

Local Housing Allowance is the name given to the way Housing Benefit is calculated for people who rent from a private landlord. (Some exceptions apply.)

The figure used for rent in your Housing Benefit calculation depends on:

• The area in which you live
• The LHA rate for that area
• The number of occupiers in your property
• The actual rent that you pay

An LHA rate is a standard rate, set by rent officers who are independent of the council, from a range of rents for properties of a given size in an area known as the Broad Rental Market Area (BRMA).

LHA rates are issued for each BRMA for:

• One-bedroom shared accommodation
• One-bedroom self-contained accommodation
• Two-bedroom self-contained accommodation
• Three-bedroom self-contained accommodation
• Four-bedroom self-contained accommodation

Changes from April 2011

Since April 2011, the maximum Local Housing Allowance amount has been limited to a four-bedroom rate. Those formerly in receipt of a 5 bedroom rate may qualify for transitional protection for up to 9 months. If you have been affected by this we will have written to you. You can also see the Transitional Protection page for further details.

Changes from January 2012

From January 2012, single people under 35 are limited to the shared accommodation rate even if they live in a self contained property. This will take effect immediately on all new claims.

If you have been claiming since before April 2011 you will move to the shared accommodation rate when any transitional protection you are currently receiving ends.

If you are an existing claimant and made your claim after April 2011 but before 31 December 2011 you will move onto the shared accommodation rate at your next LHA anniversary date.

LHA rates

An LHA rate is a standard rate, set annually by rent officers who are independent of the council, from a range of rents for properties of a given size in an area known as the Broad Rental Market Area (BRMA). 

The rate is set to what is known as the 30th percentile which means 3 on 10 properties for rent are affordable to those on Housing Benefit.

From April 2011 the maximum LHA rates payable were capped at the following

• One-bedroom self-contained accommodation £250 a week
• Two-bedroom self-contained accommodation £290 a week
• Three-bedroom self-contained accommodation £340 a week
• Four-bedroom self-contained accommodation £400 a week.

The Maximum rent used in the calculation of Housing Benefit will be the lower of either the reduced LHA rate or the LHA cap.

Wandsworth is covered by two BRMAs, Inner South West London and Outer South West London.

Use the post code search facility on the LHA Direct pages of the Valuation Office Agency website to find out which BRMA your property is in.