Local Housing Allowance London
Local Housing Allowance (LHA) rates for Housing Benefit is matched to ‘the 30th percentile’ of rents in each local area. This is the technical way of describing the cost of renting one of the cheaper homes in an area.
Imagine randomly selecting 100 homes in an area, and lining them up from cheapest to most expensive. The cost of renting the home that is 30th from the bottom would be the 30th percentile rent. It means that LHA will cover the rents of up to three in every 10 homes in an area.
LHA rates were created by the Department of Work and Pensions with the goal of controlling costs and establishing a standard amount for those in receipt of Housing Benefit.
LHA rates ensured that tenants in similar circumstances and areas could claim similar amounts; i.e. based on their needs rather than based on their property, and so that it was possible to know in advance how much rent could be covered by housing benefit in a given area.
All areas have different LHA rates, check here for your postcode:
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