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A new form of Housing Benefit called Local Housing Allowance (LHA) is being introduced form 7th April 2008. This is for tenants who rent properties from private landlords.
What is Local Housing Allowance?
LHA is a new way of working out Housing Benefit. LHA is for people on a low income who rent from private landlords. LHA is based on the number of bedrooms people are allowed, not how much the rent is. The number of bedrooms allowed depends on who lives with the tenant.
Which landlords are affected by Local Housing Allowance?
LHA affects any landlord who enters into a deregulated private tenancy agreement with a person awarded Housing Benefit. By deregulated we mean entered into since 1989 and not covered by one of the exceptions listed below.
Who is not affected by Local Housing Allowance?
LHA does not affect:
How does Local Housing Allowance affect landlords?
The only change for most landlords is that LHA will be paid to the tenant. The tenant will be responsible for paying their rent to the landlord.
In recognition of the risk that some tenants may struggle with the responsibility of paying their rent, safeguards will be put in place. Rather than introduce a precise list of circumstances when payment could be made to the landlord, we have been given discretion in identifying such cases would be more effective. We can decide to make payment direct to a landlord in a number of circumstances including:
Elmbridge has a joint |Safeguard Policy with Spelthorne and Runnymede Borough Council's. An application for direct payment can be made by either a tenant/claimant, their representative/third party or the landlord using the |Application for direct payments formthis must be accompanied by a completed |Landlord's declaration.
Further information
Information is available on the |Department for Work and Pensions website or write to:
Housing Support Division
Department for Work and Pensions
5th Floor
Adelphi
1-11 John Adam Street
London, WC2N 6HT