Local Housing Allowance- Information for landlords

A new form of Housing Benefit called Local Housing Allowance (LHA) was introduced from 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:

• tenancies with registered social landlords
• protected cases, such as supported housing provided by certain local authorities, social landlords, charities and voluntary organisations
• tenancies which are excluded from current rent restrictions
• tenancies in caravans, houseboats and hostels
• tenancies where the rent officer decides that a substantial part of the rent is for board and attendance, such as hotel accommodation.

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:

• has a medical condition (affecting their mental or physical health)
• has a learning disability or physical disability
• does not speak English as their first language
• is going though some changes that means the tenant needs some extra support
• is dealing with an addiction (to alcohol or drugs)
• has severe debt problems
• Extreme Old Age
• Rent Arrears in current tenancy
• Illiteracy

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 form this 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