Advice and benefits

What is Local Housing Allowance?

Local Housing Allowance (LHA) is for people on a low income who rent from private landlords.  It is based on the number of bedrooms people are allowed - not how much the rent is. LHA affects tenants who make a new claim for benefit, have a break in their claim or change address on or after 7 April 2008.

We held a landlords' presentation on 28 January 2008 where we spoke about LHA. There were also speakers from the Rent Service and the National Federation of Landlords. The presentations can be found at the bottom of this page and provide useful information about LHA.

How much LHA will my tenant get?

LHA is set each month by the Rent Service and gives allowances for households who need up to six bedrooms. Most tenants receive LHA based on the number of bedrooms their household needs, not the number of bedrooms in the property they rent or the rent that they are charged. 

LHA, which is awarded when a claim is made, lasts for one year unless the household circumstances change. After one year it is updated.

How is LHA worked out?

The rent figure we use for the housing benefit calculation will be based on:

• the area the tenant lives in - known as the Broad Rental Market Area (BRMA)
• how many bedrooms the tenant needs - known as the size criteria.

If a tenant secures a rent below the LHA level they can keep the difference up to a maximum of £15 per week. 

Broad Rental Market Areas (BRMA)

The Rent Service will no longer value individual properties.  Instead they will set monthly LHA rates for different size properties within different areas based on the median rent charged by private landlords. These areas are called Broad Rental Market Areas.

We have been advised that Croydon is likely to have two BRMAs, one which covers most of the borough and one which covers the Crystal Palace/Upper Norwood borders.

Size criteria - how many bedrooms are allowed?

One bedroom is allowed for

• each adult couple
• any other adult (aged 16 or over)
• any two children under 10
• any two children of the same sex aged 10 to 15
• or for any other child.

Single people over 25 years old and couples with no children

If a tenant is single and over 25 or the tenants are a couple with no children they will get the one room rate of Local Housing Allowance.

Single people under 25

If a tenant is single and under 25 they get the shared room LHA no matter what size of property they rent.

Joint tenants

Joint tenants are people who are not a couple but share a property and are named on the tenancy agreement. Joint tenants will get LHA for their own household not including the family of the other joint tenants.

How do I find out what the LHA rates for my property will be?

We will publish the Local Housing Allowance rates every month on this website from April 2008. We are also looking into having an automated phone line to provide this information each month. We will also display the rates in our Public Enquiry Counter in Fell Road from April 2008.

How will LHA affect me?

The main change is that most Housing Benefit payments will be made directly to the tenant. This means the tenant is responsible for paying their rent to landlords.

Will all payments be made to tenants?

No. Any tenant who is getting Housing Benefit on 7 April 2008 will continue to be paid the old way. If you are receiving Housing Benefit payments direct on behalf of your tenant(s), these will continue to be paid to you.

The LHA rules will only affect tenants who make a new claim, move address to new private rented accommodation or have a break in their claim on or after 7 April 2008.

What protection exists for landlords?

There are a range of safeguards to protect the interests of landlords. Payments will be made to you if:

• your tenant is vulnerable and unable to 'manage their affairs'
• your tenant is unlikely to pay their rent
• your tenant is in arrears by 8 weeks or more
• your tenant is having deductions made from income support or jobseekers allowance to pay off rent arrears
• we need to issue a one-off payment on a new claim.

What do you mean by a 'vulnerable tenant'?

The Department for Work and Pensions defines a vulnerable person as someone who has difficulty managing their own affairs. Some examples include:

• learning difficulties
• medical conditions
• illiteracy
• drug/alcohol/gambling dependencies
• people leaving prison
• care leavers
• people fleeing domestic violence

We will work with tenants, landlords and welfare groups to identify vulnerable tenants. We make decisions on vulnerability on a case-by-case basis. 

What do you mean by 'unlikely to pay their rent'?

Some examples include:

• history of rent arrears
• history of fraud
• severe debt problems
• undischarged bankruptcy
• inability to open a bank account

Can the tenant ask for their benefit to be paid to their landlord?

As part of the Housing Benefit reforms, tenants will no longer be able to simply ask for their benefit to be paid direct to their landlords. If a tenant feels that they may have difficulty in managing their financial affairs and may be entitled to direct payment to their landlord, we will consider any request they make.

If direct payments are being made to me, how long will these be made?

Where a tenant is considered likely to have difficulty in paying their rent and there is little or no prospect of their situation changing, payment of benefit to the landlord is likely to be long-term.

In cases where the situation is likely to be temporary, or where rent arrears of more than eight weeks have been repaid, the situation will be reviewed. If the tenant is in a better position to have their benefit paid to themselves, and to pay their rent in full and on time, direct payments to the landlord will stop.

Contact Details

Contact name

Council Tax & Housing Benefit

Telephone

020 8726 7000

Fax

020 8667 8440

Email

Croyhben@croydon.gov.uk

Address

Municipal Offices, Fell Road, Croydon, CR9 1BQ