Local housing allowance (LHA)

This content applies to England only.

Housing laws vary between England and Scotland. Get advice relating to Scotland

Local housing allowance (LHA) is the housing benefit payable to most tenants renting from private landlords. The amount of local housing allowance (LHA) paid depends on the size and location of the property.

Does local housing allowance (LHA) apply to me?

Local housing allowance (LHA) only applies to private tenants who make a new claim for housing benefit or who made a claim after 7 April 2008.

Local housing allowance (LHA) does not apply to:

  • private tenants who have claimed continuously from before 7 April 2008
  • private tenants with tenancies from before 15 January 1989
  • people living in hostels or bed and breakfast accommodation
  • people living in mobile homes or on houseboats

– rules for calculating housing benefit for private tenants apply instead.

LHA does not apply to council and housing association tenants – rules for calculating housing benefit apply instead.

LHA payments can cover rent and some service charges, if you have to pay them to continue living in the property. It cannot be used to pay charges for heating, hot water, lighting, laundry or cooking.

How is local housing allowance (LHA) calculated?

The amount of local housing allowance (LHA) you can receive will depend on:

  • the maximum rent allowed for properties in your area
  • the number of rooms you need.

The amount you receive also depends on your income, savings and if you have any non-dependents (such as adult sons and daughters) living with you.

Your LHA claim will be routinely reassessed every 12 months. The date this happens is called the ‘anniversary of your claim’. Your LHA may also be reassessed if your circumstances change – you need to tell the council if this happens. 

Maximum rent

A maximum weekly rate of local housing allowance (LHA) in any area was introduced in April 2011 based on the number of bedrooms your household qualifies for. The new limits are:

  • £250 for a one-bedroom property
  • £290 for a two-bedroom property
  • £340 for a three-bedroom property
  • £400 for a four-bedroom property.

If you are already claiming more than this, your LHA will be reduced up to nine months after the anniversary of your claim, or sooner if your household circumstances change.

Local limits

Local housing allowance (LHA) Is also limited according to where you live. Local limits were reduced on 1 April 2011 and are now based on the cheapest 30 per cent of properties in an area instead of the cheapest 50 per cent.

  • If you make a new claim from 1 April 2011, your LHA will be based on the new lower limits for your area.
  • If you were already claiming LHA, this will be reassessed and the new rates will apply nine months after the anniversary of your claim, or earlier if your circumstances change.

You can use the LHA Direct website to find out the maximum amounts allowed in different areas before and after all these changes. 

Rooms allowed

You will be assessed as needing a bedroom for each of the following people in your household:

  • adult couple
  • other person aged 16 or over
  • any two children of the same sex up to the age of 16
  • any two children regardless of sex under the age of 10
  • any other child.

Since 1 November 2010, foster children are not included in this calculation.

From April 2011, if you claim local housing allowance, the maximum amount you are allowed is limited to the top rate in your area for a four bedroom property, reduced from a previous maximum of five. If you are already getting the five-bedroom rate, your benefit will be reassessed nine months after the anniversary of your claim or possibly sooner if your circumstances change.

You can still rent a larger house, but you will only get benefit up to the maximum level for four bedrooms. It is likely that there will be a shortfall between your rent and the amount of housing benefit you receive.

If you are under 25 or you are occupying shared accommodation, you are only entitled to the shared accommodation rate, which is lower than the rate for a one-bedroom property. This lower rate applies even if you can’t find shared accommodation in your area and are renting a property on your own. From January 2012, this rate will apply to many people aged under 35.

You can use the LHA Direct website to calculate the maximum number of bedrooms you are entitled to.

Rooms for non-resident carers

If you or your partner are disabled and require overnight care, you may need a separate bedroom to allow a carer to stay overnight. From April 2011 you will be able to claim local housing allowance (LHA) for an extra bedroom for an overnight carer, but only if there is a room in your property that is used by your carer.

If you need overnight care, but the housing benefit department of your council doesn’t give you the extra benefit, contact a local advice centre for help. Use our directory to find one.

The weekly excess payment

If you claimed local housing allowance (LHA) before 1 April 2011, you may have been awarded up to £15 a week more LHA than the rent you pay – and were allowed to keep the difference. From April 2011, you lose this extra amount when your claim is reviewed or if your household circumstances change.

For new claims made after 1 April 2011, you will not receive this ‘excess payment’.

What if local housing allowance (LHA) doesn’t cover my rent?

Over time, many people will be affected by a reduction in their local housing allowance (LHA) following recent changes – and it could lead to shortfall between the benefit you receive and your rent. You may need to seek advice about how you could make up any shortfall, whether you may need to move to a more affordable home, or how to negotiate a cheaper rent with your landlord.

If you are struggling to pay a shortfall your options include:

  • applying for a discretionary housing payment, and/or
  • moving somewhere cheaper
  • negotiating a cheaper rent with your landlord in return for direct payments.

When local housing allowance (LHA) must be paid to landlords

In most cases, local housing allowance (LHA) is paid directly to the person who claims it, and that person is expected to pay the rent.

However, the council must make the payments direct to your landlord if:

  • you have rent arrears of eight weeks or more
  • deductions are already taken from your income support, jobseeker’s allowance or employment support allowance to pay for rent arrears.

When local housing allowance (LHA) can be paid to landlords

In some circumstances, the council can decide to pay your local housing allowance (LHA) direct to your landlord. The council may decide to do this if:

  • you are likely to have problems paying your rent, for example if you have you have problems with drugs or alcohol, or you have a serious medical condition
  • you are unlikely to pay your rent, for example if the council is aware you have consistently failed to pay the rent in the past.

From 1 April 2011, the council will also be able to use its discretion to pay LHA direct to a landlord where this will help someone to obtain or keep a tenancy.

  • For existing tenants – if the rent has been reduced to an affordable level (normally the LHA rate for the property).
  • For new tenants – if the rent has been reduced to an affordable level or direct payments will help a tenant secure the tenancy.

It is important that local councils are provided with information to help them decide if paying LHA to your landlord is in your interests – information from doctors and other health professionals, support workers, probation officers and others may help.

If you need help you should contact a Shelter advice centre, your local council or another local advice service, or use our directory to find help in your local area.

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