Landlords alerted to Local Housing Allowance

Permalink: Landlords alerted to Local Housing Allowance
by Gill Montia

Local Housing Allowance (LHA), a new way of working out Housing Benefit for private tenants, comes into effect next month.

LHA is a flat rate allowance aimed at people who rent their homes from a private landlord, are on a low income, and need help to pay their rent.

Those applying will receive Housing Benefit based on the area in which they live and the size of their household.

The new system forms part of the Government’s wider programme of benefit reform and will give landlords and tenants more choice and information.

It will also encourage tenants to be responsible for budgeting as they will know in advance the maximum level of Housing Benefit they can receive.

Landlords need to be aware that that payment of LHA will normally be made direct to the tenant.

Those affected include landlords who have entered into a deregulated private tenancy agreement with a person awarded Housing Benefit.

Deregulated tenancies are tenancies which have been entered into since 1989, although there are certain exceptions.

The systems has been successfully piloted in 18 local authorities and will apply to private sector tenants who make a new claim for benefit and to existing tenants who change address or move into private sector accommodation, on or after 7 April 2008.