The Division for Work and Pensions (DWP) exhaust Local Housing Allowance (LHA) rates to calculate Housing Abet for tenants renting from deepest landlords. LHA rates expose to an space whereby a squawk is made – these areas are known as Colossal Condominium Market Areas (BRMA). A BRMA is where a particular person may per chance maybe well moderately be anticipated to are residing taking into story get entry to to sure facilities and products and companies.
How Local Housing Allowance rates are calculated
The Valuation Trouble of job Company (VOA) Rent Officers fetch rental data from letting brokers, landlords, tenants and heaps of sources. LHA rates are in accordance to deepest market rents being paid within the BRMA which is ready to fluctuate from advertised rents.
These data attain no longer consist of all rents that may per chance exist in every BRMA. Based on DWP guidelines, Rent Officers are tasked with gathering a sufficient sample from the 12 month length ending 30 September old to DWP publishing LHA rates on 1 April. These revealed data are the rents quiet and contains both novel and renewal rents in fee, as negotiated between landlord and tenant. These rents attain no longer consist of any cost attributed to products and companies that are ineligible for housing profit (successfully to find rents). Housing profit supported rents are also removed where imaginable.
The LHA contains a space of rates for a preference of categories – Categories A to E that are:
a) ‘Shared Lodging’:
Consuming exhaust of 1 mattress room and sharing the exhaust of 1 or more of a:
room factual for residing in
b) 1 mattress room dwellings: those with one mattress room and strange exhaust of a kitchen, a bathroom, a bathroom and a room factual for residing in
c) 2 mattress room dwellings
d) 3 mattress room dwellings
e) 4 mattress room dwellings
The Rent Officer maintains lists of rental data for every category of LHA rates. These are the checklist of rents, downloadable within the paperwork hyperlink above.
Based on DWP guidelines, mathematical calculations are applied to the checklist of rents to resolve the
LHA rate which is the lower of:
the 30th percentile on a list of rents within the Colossal Condominium Market Verbalize
the currently space LHA
It is doubtless you’ll per chance well maybe procure the LHA rates on LHA-Order by browsing by postcode or local authority space. BRMA maps and graphs are included within the hunt results.
The catch hyperlink is for the total checklist of rents for England and is equipped for customers to self-filter rents for outlined BRMAs and LHA categories as required.