How is the Local Housing Allowance (LHA) calculated?

How is local housing allowance calculated?

The normal rules for calculating housing benefits are very complicated. Local housing allowance was supposedly 'designed' to simplify the process of making a claim. Heard that one before?!!! It does this by introducing a 'standard local rent' which is set according to:

* the number of rooms a tenant needs (this is based on the number of people living in their rental property) and
* how much rent a landlords charges for similar properties in the area.

Where do professional landlords get discounted landlord insurance rates?

To find out what the standard local amount for a particular type of property in the area a landlord can visit the LHA Direct website. Alternative'y, a landlord could also ask the housing benefit department or look on the council's website.

Tenant will be assessed by the Local Authority as needing a bedroom for each of the following they have in their household:

* adult couple
* other adult aged over 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.

As with housing benefit, the amount the tenant will receive will also depend on their income, savings and whether any non-dependent deductions apply.

To find out more about how much benefit your tenant might be expected to receive, you should contact your local authority who should have information on the LHA allowance for your area and your type of rental property. For example Wigan rental property

Find out more about the LHA