What is local housing allowance rate
Local Housing Allowance (LHA) is a way of working out housing benefit if you pay your rent to a private landlord. If you rent from a Housing Association or the Council, this does not apply to you.
It is a flat rate allowance towards rent costs, based on the area where you live and the number of people who live with you. This will mean that tenants living in the same area with similar circumstances will receive broadly the same amount of benefit.
It will normally be paid directly to you, and you will then pay your rent to your landlord. There are however safeguards in place so that a landlord may be paid directly in certain cases - this will protect vulnerable tenants.
LHA will not apply if you:
- Pay your rent to a registered social landlord, for example, Midland Heart
- Pay your rent to the Council
- Pay a rent that has been registered as a fair rent
- Have a tenancy that began before 1989
- Live in a hostel, caravan, mobile home or houseboat