Local housing allowance (LHA) scheme explained

About local housing allowance

Local housing allowance came into force from 7 April 2008.

Local housing allowance is a government reform, designed to simplify the housing benefit rules. The scheme allows you more freedom financially, when it comes to choosing where you want to live.

What is local housing allowance?

Local housing allowance is a flat rate allowance based on the size of your household and the area in which you live. It is not based on the rent that your landlord is charging for your property. There are no changes to the housing benefit entitlement rules; these are still based on your income and savings and proof of a valid tenancy.

Who will it affect?

Local housing allowance will apply to you if you:

  • Rent from a private landlord and make a new claim for housing benefit after 7 April 2008 or
  • Change your address to privately rented accommodation after 7 April 2008 or
  • Have a break in your entitlement of one week or more after 7 April 2008

You will not be affected by local housing allowance if you are:

  • A tenant of a registered social landlord (housing association)
  • In a tenancy that began before 1989
  • Renting from a charitable organisation that provides support
  • Living in a caravan, houseboat, mobile home or hostel
  • Living in board and attendance

Last updated: 22/02/2017 11:51

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