Local Housing Allowance
If you are a private tenant renting property or room from a private landlord and you are on a low income, you may be able to claim and receive Local Housing Allowance. Find out more, including how it's paid.
What is the Local Housing Allowance?
If you are renting a property or room from a private landlord, the Local Housing Allowance is used to work out how much Housing Benefit you get.
If you have been getting Housing Benefit since before 7 April 2008 the Local Housing Allowance will only apply to you if you:
- change address
- have a break in your claim
With the Local Housing Allowance, your Housing Benefit is worked out according to where you live and who lives with you. Local Housing Allowance rates are set for different types of accommodation in each area. The rates range from a single room in a shared house up to properties with five bedrooms.
How Local Housing Allowance rates are calculated
Local Housing Allowance rates are calculated each month for individual areas, known as Broad Market Rental Areas.
The Local Housing Allowance rate for each property size is based on the 'middle of the range' rental figure for the area. Exactly half of the rental properties of that size in the area will be affordable if you claim Housing Benefit under the Local Housing Allowance rules.
Where the rates are published
Local Housing Allowance rates are published at the end of each month for the following month. For example, the April rates will be made available at the end of March. You can check these locally on your local council's website or by visiting the Local Housing Allowance Direct website.
This will tell you how much help with your rent you might get before you find somewhere to live, making it easier for you to decide what property you can afford.
- Local Housing Allowance Direct Opens new window
- A to Z of local councils
How much you will get
Your Housing Benefit will be based on the Local Housing Allowance that applies to you.
If your rent is lower than the Local Housing Allowance Rate, you will be able to keep any excess benefit up to a maximum of 15 per week. If your rent is higher than the Local Housing Allowance rate you will need to pay the difference from other sources of income or look for alternative accommodation.
- Local Housing Allowance Direct Opens new window
- A to Z of local councils
How it's paid
The payment will normally be made to you straight to your bank or building society account (if you have one) or by cheque. Payment is not normally made to your landlord.
If you do not already have a bank or building society account, you may want to set one up. That way you can arrange to pay the rent to your landlord automatically, using a standing order.
You can get advice about opening and running a bank account from any bank or building society. You can also get advice from organisations like Citizens Advice. There is also advice on bank accounts available.
- Bank accounts and banking products
It is up to you to pay your rent to your landlord. If you don't pay your rent, you may be taken to court and evicted from the property.
If you are worriedabout managing your money, ask your local council if they can help you. In some cases they may be able to pay your benefit to your landlord.
How to claim
You can claim Housing Benefit as soon as you have a rent agreement with your landlord.
See 'Housing Benefit' to find out more about claiming.
- Housing Benefit
What to do if your circumstances change
If you are getting Housing Benefit and you move to a new address or other circumstances change, you should tell your local council straightaway.
See 'Housing Benefit' to find out more about changes of circumstance.
- Housing Benefit
More useful links
- On a low income benefits information
- Mortgage Interest Run On information - home loan help
- Rent arrears
- Home buying schemes (home and community section)
- Beginner's guide to tax
This content is subject to Crown Copyright
- Source:
- DirectGov
Let the advisors at Contact Law, a service of FindLaw, guide you through the process of hiring a qualified solicitor to meet your specific needs:
- 5,000 solicitors objectively screened
- Secure and private service
- Expertise for your needs
- Contact Law is a service of FindLaw UK
Call 0800 1777 167
Articles
Community
Blog