Local Housing Allowance

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  • Local Housing Allowance uses the same regulations as the existing scheme.
  • Changes to the local housing allowance were announced in the June 2010 budget.
  • In the main only new claims and tenants who move into a private assured shorthold tenancy will be paid Local Housing Allowance.
  • The Local Housing Allowance method of assessing benefit will be applied across the de-regulated private rented sector nationwide.
  • Some landlord organizations have about Local Housing Allowance as they believe it has made rents more difficult to collect from those on Housing Benefit.
  • Since April 2008, new private sector benefit claimants receive housing benefit under revised rent restriction rules called Local Housing Allowance.
  • Local Housing Allowance will be calculated on the number of rooms the claimant's household needs not the number of rooms in the property or the amount of rent charged.
  • The Government has introduced a new rent restriction policy for the calculation of Housing Benefit for private tenants called Local Housing Allowance.
  • The introduction of the new Local Housing Allowance for new claimants in April 2008 had a significant impact on the Rent Service.
  • Before the introduction of the Local Housing Allowance the only way of finding out whether the benefit for the property would be restricted would have been to obtain a Pre Tenancy Determination.
  • In 2008, a Local Housing Allowance for people on low incomes or on benefits who were renting from private landlords was introduced.
  • This proposal would remove the incentives for tenants to seek less-expensive accommodation which was one of the primary rationales for the roll-out of Local Housing Allowance.
  • The Housing element would be based on Local Housing Allowance, in a similar manner to Housing Benefit, but payments would be incorporated within Pension Credit, rather than being a separate benefit claimed from the local council.
  • For housing benefit claims made before (or still existing at) the roll-out of Local Housing Allowance scheme on 7 April 2008, different rent restriction rules apply.
  • In October 2002 the Government announced the introduction of the Local Housing Allowance (LHA) to replace existing Housing Benefit rent restrictions for private tenants.
  • Local Housing Allowance is designed to ensure that landlords do not have a reason to discriminate against tenants on Housing Benefit, as in most cases there will be no need for a landlord to know that the tenant is on Housing Benefit, and the tenant can know in advance if rent will be met in full.
  • Where the landlord is a not for profit company (or voluntary organisation), a Registered Social Landlord or a Local Council that provides care support or supervision, they will be exempt from Local Housing Allowance and will fall under the housing benefit rules in operation prior to 2 January 1996.
  • A major change to the valuation process for housing benefit was the Local Housing Allowance (LHA) a flat rate allowance paid to housing benefit claimants, which was introduced on 7 April 2008 as part of the welfare reform programme.