Local Housing Allowance (LHA) is a Housing Benefit scheme for people who rent their homes from a private landlord, who are on a low income and need help to pay their rent.

It was introduced (nationally) from 7th April 2008 for all new customers or existing customers who change address or have a break in benefit. However it will not apply to the following tenants:

• People who rent from Stroud District Council
• People who rent from a Housing association / registered social landlord
• People whose tenancy started before 1989 or have a fair rent registered
• People who receive care and support by the landlord at the property (supported housing)
• People who live in hostels, mobile homes, caravans or house boats
• People whose rent includes a substantial element towards meals
• (hotel accommodation)

The local housing allowance will be based on the rent levels for the area in which you live and how many people live with you, not the actual rent charged. This means you will be able to shop around and if you find a property which is more than the Local Housing Allowance rate for your family unit, then you know how much extra you will have to pay from your own income before taking the tenancy.

The Local Housing Allowance rates are based on the number of bedrooms you and anyone else who lives with you on a permanent basis needs under the benefit regulations. If you are single and under 25 (changing to 35 in January 2012) then restrictions apply. The rates are published monthly and more information about the scheme can be found at www.direct.gov.uk under Local Housing Allowance .

From April 2011 the Valuation Office, who give us the maximum rents per allowable bedrooms, calculate their figures differently. From April they use 30% of the average rents, whereas previously it was 50%.  For current recipients of LHA their eligible rent will be protected for 9 months from the date of their LHA anniversary.

From January 2012 the Government will be extending the rules that apply to single people.  Currently single people who are aged under 25 will always receive the shared accommodation rate regardless of what they are actually renting, unless they are getting a severe disability premium, are under 22 and formerly in care, living with a non-dependant, an ex-offender subject to active multi-agency management or been in a homeless hostel for over 3 months.  The 25 to 35 age restriction will start in January 2012. 

Check the Local Housing Allowance rates monthly for information about what we can pay as they may vary from month to month.

View local housing allowance rates here