Frequently Asked Questions - Local Housing Allowance

• Who sets the Local Housing Allowance rates?
• What are the Broad Rental Market Areas?
• Which tenants will not have their Housing Benefit assessed under the Local Housing Allowance rules?
• What Local Housing Allowance rate will apply to me?
• Single tenants and couples without children
• How is the Local Housing Allowance rate used to work out Housing Benefit?
• Will my Housing Benefit change if my rent goes up?
• Why is Housing Benefit under the Local Housing Allowance rules paid to the tenant rather than the landlord?
• What arrangements will be made for the first payment of Housing Benefit?
• What safeguards exist for landlords?
• Who is to say whether or not a tenant is unable to manage their own affairs?
• Can a landlord say whether or not their tenant is unable to manage their own affairs?
• Who will decide whether or not a tenant is unlikely to pay his rent?
• As a landlord, can I make direct payment of Housing Benefit a condition of the tenancy?
• What appeal rights do I have against a payment decision?
• Won’t tenants spend their Housing Benefit on other things or abscond?
• How do I find out what the Local Housing Allowance rate for my property is?
• How do I get further information about the Local Housing Allowance rules?

Who sets the Local Housing Allowance rates?

The Valuation Office Agency set the Local Housing Allowances for different sizes of properties in each Broad Rental Market Area. Every month, they will give us the rates for all property sizes up to four bedrooms.

Since 1 April 2011 if we get a benefit claim from a family who need more than 4 bedrooms, the Local Housing Allowance that we may use to assess their Housing Benefit is limited to the 4 bedroom rate.

From 1 April 2012 the rates will be set once a year and not every month.

The Local Housing Allowance Rates page has details on how to calculate your bedroom rate.

What are the Broad Rental Market Areas?

Rent Officers at The Valuation Office Agency set Local Housing Allowance rates for a Broad Rental Market Area, (BRMA).  A BRMA is an area within which a person could be reasonably expected to live having regard to access to facilities and services for the purposes of health, education, recreation, personal banking and shopping. It takes into account the distance of travel, by public and private transport, to and from those facilities and services.

The Doncaster local authority area has 2 BRMAs: Doncaster and Rotherham. 

Which tenants will not have their Housing Benefit assessed under the Local Housing Allowance rules?

Local Housing Allowance will not apply to you if:

• You rent your home from the council
• You rent your home from a registered social landlord, for example, a housing association
• You live in supported housing provided by a housing association or a registered charity or voluntary organisation
• You live in a caravan, houseboat or hostel
• A substantial part of your rent is for board and attendance, for example, if you live in hotel accommodation
• Your tenancy is protected from rent restrictions, for example, tenancies which were entered into before January 1989

What Local Housing Allowance rate will apply to me?

The Local Housing Allowance rate that will apply to you depends on the number of bedrooms you need. The number of bedrooms allowed depends on who lives with you as part of your household. Generally one bedroom is allowed (to a maximum of 4) for:

• every adult couple
• any other adult aged 16 or over
• any two children of the same sex under 16
• any two children (regardless of sex) under 10
• any other child

For example, a couple with two children aged under 10 would be allowed the Local Housing Allowance rate for two bedrooms.

You can be allowed an extra bedroom if you or your partner are disabled and need overnight care. You must have an extra bedroom that a carer uses to sleep in overnight. Get in touch with us if you want more information about this.

There are different LHA rates for:

• shared accommodation (this applies to most single people under 35)
• 1 bedroom property
• 2 bedroom property
• 3 bedroom property
• 4 bedroom property

From 1 April 2011, if we get a benefit claim from a family who need more than 4 bedrooms, the Local Housing Allowance that we may use to assess their Housing Benefit is limited to the 4 bedroom rate.

We publicise the Local Housing Allowance rates on our website and in our offices, so that landlords and prospective tenants are clear about the maximum amount of rent Housing Benefit will cover.

We will use the Local Housing Allowance rate that applies to the month in which your Housing Benefit claim starts. Unless you have a change in circumstances, we will use this rate for 12 months after which it will be reviewed. You may have a change in circumstances that affects your Local Housing Allowance rate, for example, if someone moves into your home and this means you need more bedrooms. If this happens, we will normally review your Local Housing Allowance rate from when the change occurs.

Single tenants and couples without children

Most single tenants aged under 35, living alone, are only entitled to the shared accommodation rate.

Special rules apply to single people over 35 and couples without children. These people are only allowed the 1 bedroom property rate if they actually live in a property of at least this size. Otherwise, they are allowed the shared accommodation rate.

The shared accommodation rate is based on market rents for non self-contained accommodation, this means accommodation where they share facilities like a living room, kitchen or bathroom.

From 1 January 2012, the shared accommodation rate applies to most single people under the age of 35 regardless of the type of the property they live in. Previously, it applied to most single people under the age of 25. For more information about these changes, see the 'Latest Benefit News' page. 

How is the Local Housing Allowance rate used to work out Housing Benefit?

Your Housing Benefit will be based on the Local Housing Allowance rate that applies to you. Your income, any savings you have and any non dependants living with you will still affect how much Housing Benefit we will pay you. Your Local Housing Allowance rate is really the starting point for working out your Housing Benefit.

If your Local Housing Allowance rate is less than the rent you have to pay, your Housing Benefit will be based on your Local Housing Allowance rate.

If your Local Housing Allowance rate is more than the rent you have to pay, your Housing Benefit will be based on your rent charge.

Will my Housing Benefit change if my rent goes up?

If your landlord puts your rent up, this will not affect the amount of your Housing Benefit or the Local Housing Allowance rate you are entitled to.

Why is Housing Benefit under the Local Housing Allowance rules paid to the tenant rather than the landlord?

The right for tenants to instruct us to pay their Housing Benefit to their landlord does not exist under Local Housing Allowance rules. The Government believes that tenants receiving Housing Benefit should, where they are able to, take greater responsibility for managing their financial affairs in the same way as other tenants do. This should also help to give people of working age the skills they need when they move into work.

There are safeguards within the Local Housing Allowance rules that allow us to pay Housing Benefit to the landlord if the tenant is unlikely to pay their rent or deemed unable to manage their own affairs because they are vulnerable in some way. We will also pay the landlord if the tenant has rent arrears of eight weeks or more, or has left a property owing rent arrears and there is an outstanding payment of Housing Benefit due. For more details, see the question on ‘What safeguards exist for landlords?’

What arrangements will be made for the first payment of Housing Benefit?

If other grounds for paying the landlord direct do not apply, normally, we will make the first payment of Housing Benefit by cheque which is sent to the tenant but made payable to their landlord. Our benefit claim form advises the tenant that the initial payment will be made payable to the landlord and invite them to make representations if they object, for example, if they have proof that their rent is paid up to date.

In making the first payment payable to the landlord, we are seeking to:

• provide some confirmation that a genuine tenancy has been created between the landlord and the tenant
• reduce the potential for abuse where the initial Housing Benefit payment is a larger than normal payment
• inform the landlord that we have made a decision about the Housing Benefit claim so they can then make arrangements about future payments of rent with the tenant.

What safeguards exist for landlords?

The Local Housing Allowance rules have a range of safeguards to protect the interests of tenants and landlords. For example, we can make direct payments to a landlord where the tenant is eight weeks or more in arrears with their rent. In addition, we can make direct payments to a landlord if we consider the tenant is unlikely to pay their rent.

The Local Housing Allowance rules also recognise that some tenants will not be able to successfully manage their own affairs, including paying their rent, because they are vulnerable in some way. In these circumstances, we have discretion to pay the tenant’s Housing Benefit to the landlord. In order to be considered vulnerable, a tenant must meet certain criteria, for example, learning difficulties, medical conditions, illiteracy, addiction to drugs, alcohol and gambling.

We have developed a Safeguard Policy setting out all the circumstances when we will apply the safeguard provisions and pay Housing Benefit to the landlord.

Who is to say whether or not a tenant is unable to manage their own affairs?

We will decide whether or not a tenant is unable to manage their own affairs. We will make this decision after considering the Department for Work and Pensions' Local Housing Allowance safeguard guidance and any evidence we gather as a result of representations from the tenant or a third party.

Can a landlord say whether or not their tenant is unable to manage their own affairs?

A landlord may approach us if they consider their tenant is unable to manage their own affairs. We will then want to investigate the tenant’s circumstances and request proof, for example, a letter from a Doctor or support worker. We may also interview the tenant before making a decision.

Who will decide whether or not a tenant is unlikely to pay his rent?

We will decide whether or not a tenant is unlikely to pay their rent. We will take account of all the information and evidence available to us at the time, including any information from the landlord and any known past history of non payment of rent, when reaching our decision.

As a landlord, can I make direct payment of Housing Benefit a condition of the tenancy?

Tenancy agreements are binding contracts between a landlord and their tenant. We are not party to the tenancy agreement and, as such, are not bound by any conditions in the agreement. We cannot pay benefit direct to a landlord at the request of the tenant. This cannot be changed by making direct payment a condition of the tenancy.

What appeal rights do I have against a payment decision?

Appeal rights have not changed as a result of the new rules. You cannot appeal against the Local Housing Allowance rates set for the area. You can appeal against a decision to pay Housing Benefit to you or not to pay Housing Benefit to you if you are a person affected by that decision. For example, if you are a landlord and have asked us to pay your tenant’s Housing Benefit to you but we have refused.

Won’t tenants spend their Housing Benefit on other things or abscond?

Many tenants in the private rented sector receive their Housing Benefit direct and regularly pay their rent on time. Where a tenant is receiving their own Housing Benefit payments we make it clear to them what their responsibilities are and the consequences of not paying their rent.

How do I find out what the Local Housing Allowance rate for my property is?

Local Housing Allowance rates are based on the number of bedrooms a tenant needs, not the size of the property they actually live in. The Local Housing Allowance rates therefore inform you of the maximum amount a household of a certain size could be awarded.

The Valuation Office Agency make an assessment of the Local Housing Allowance rates for our area in advance and these are reviewed monthly. The Valuation Office Agency pass the new rates to us just before the start of the month and we then publicise the rates on the Local Housing Allowance Rates page and in our offices.

From 1 April 2012 the rates will be set once a year, not every month.

How do I get further information about the Local Housing Allowance rules?

If you have any specific questions about Local Housing Allowance and how it may affect you or your tenants, please get in touch with us. Our contact details are at the top of the page. You may also find it helpful to read our Local Housing Allowance Fact Sheets which have more information.

You can get independent advice about your Housing Benefit and Council Tax Benefit from the Citizens Advice Bureau.

Information can be made available in other languages, or other formats such as Braille or Audio Tape, on request. Please ask a member of our staff for more information, or if you need any other help or advice. They can arrange to speak to you in your own language if you need them to.