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 each month 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

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

Changes from January 2012

From January 2012, single people under 35 will be limited to the shared accommodation rate.  

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 you will move onto the shared accommodation rate at your next LHA anniversary date.

LHA rates

An LHA rate is a standard rate, set each month 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 payable is 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.