Local Housing Allowance
Local Housing Allowance (LHA) is the new name for housing benefit for tenants in privately rented accommodation.
What is Local Housing Allowance?
Local Housing Allowance (LHA) is the new name for housing benefit for tenants in privately rented accommodation. The idea is to simplify the rules and to allow tenants more freedom - both financially, and to choose where they live.
LHA will be used to work out housing benefit for all new claims received on or after 7th April 2008, except for the cases in the 'who will not be affected by LHA' listed below. LHA will also apply to claimants already on housing benefit if they move home after 7th April 2008 and claim benefit at the new address or if they have a break in their claim of one week or more.
The new rules will not apply to:
- Local Authority tenants
- Tenants of registered social landlords (Housing Associations)
- Tenants who have a registered or 'fair' rent
- Tenancies which commenced before January 1989
- Protected cases such as supported housing provided by social landlords, charities or voluntary organisations
- Tenancies in caravans, houseboats or hostels
LHA is a flat rate weekly allowance based on the size of household and the area in which a person lives. It is not based on the actual rent charged for the property. The rates of LHA will be published by the Rent Office each month and will be available from Hertsmere Borough Council.
Prospective tenants will now have more choice when renting a property - if they find a property they like with a rent that exceeds their LHA they will need, as they do now, to make up the difference themselves. But if they find somewhere with a rent below their allowance, they will be able to keep the difference up to a maximum £15.00 per week.
However, there are no changes to the housing benefit entitlement rules – this will still be based on a person’s income and savings and proof of a valid tenancy.
Payment will normally be to the tenant by BACS (direct transfer to their bank account), who will then pay the landlord. However if a tenant is in arrears with their rent by 8 weeks or more the landlord has the right to ask for direct payments.
If the claimant is unable to take the responsibility for the payment of rent then the Council will consider making the payments direct to their landlord.
Local Housing Allowance Rates July 2008
South West Herts Area
| Room | £84.35 per week | £365.52 per calendar month |
| 1 Bed | £150.00 per week | £650.00 per calendar month |
| 2 Bed | £190.38 per week | £824.98 per calendar month |
| 3 Bed | £225.00 per week | £975.00 per calendar month |
| 4 Bed | £369.23 per week | £1600.00 per calendar month |
| 5 Bed | £461.54 per week | £2000.01 per calendar month |
South East Herts Area
| Room | £70.38 per week | £304.98 per calendar month |
| 1 Bed | £138.46 per week | £599.99 per calendar month |
| 2 Bed | £173.08 per week | £750.01 per calendar month |
| 3 Bed | £206.54 per week | £895.01 per calendar month |
| 4 Bed | £295.38 per week | £1279.98 per calendar month |
| 5 Bed | £380.77 per week | £1650.00 per calendar month |
Outer North London Area
Room | £95.54 per week | £414.01 per calendar month |
1 Bed | £175.00 per week | £758.33 per calendar month |
2 Bed | £225.00 per week | £975.00 per calendar month |
3 Bed | £280.00 per week | £1213.33 per calendar month |
4 Bed | £370.00 per week | £1603.33 per calendar month |
5 Bed | £450.00 per week | £1950.00 per calendar month |
External links
For further information please visit The Rent Service 
online.