Local Housing Allowance (LHA)

The new way of working out Housing Benefit for people who live in privately rented accommodation. LHA is a flat rate allowance based on the size of the household - not the size of the property - and the area in which the household lives. It means that the Rent Service does not need to look at every property and decide on the level of rent that is applicable for Housing Benefit in each case. Payment of benefit under the LHA will normally be to the tenant, who will then pay the landlord.

The main aims of introducing the LHA scheme are to promote fairness, choice, transparency, simplicity and personal responsibility for the tenant: 

  • Fairness: LHA is designed to pay the same amount of benefit to tenants with similar circumstances living in the same area. However, it is important to remember that Housing Benefit is means tested.
  • Choice: It allows the tenant to trade and choose between the quality and price of their accommodation.
  • Transparency and simplicity: It allows tenants to find out in advance how much Benefit they will receive and complicated rent officer referrals are no longer needed.
  • Personal Responsibility: As LHA is paid direct to the tenant, it encourages them to take responsibility for their financial affairs and rent payment.