Finefair Ltd has always worked for the benefit of its clients. We offer excellent services and invaluable information. There are a lot of subjects we excel in. Examples include guaranteed rent, property management, and leasing to name a few. Also, you can expect us to offer advice about the local housing allowance in Newham. If you’re interested in this, please continue reading.
Examining LHA
During 2008, the government gave us local housing allowance (LHA). It gives councils a way of calculating Housing Benefit entitlement. This is for any tenants renting private sector housing in Scotland, England, or Wales. This is more challenging than social housing because the rents can differ massively.
LHA’s adoption resulted in a major change in how councils pay housing benefits. Restrictions changed too. Most significantly, there was the change to basing entitlement on the 30th percentile of rental accommodation within the community rather than the 50th percentile or median.
LHA works in a certain very clever way. It uses private market rental rates to see what people within the area pay. We call this the BRMA. It inspects rates for the number of bedrooms in the structure. The intention here is to guarantee that tenants living somewhere with similar buildings can gain similar amounts. It makes local housing allowance in Newham and other parts of London very fair.
When do LHA rates go into effect?
For those wondering when LHA rates get set, January is the norm. They then take effect in April. The rent officer generates a list of LHA rates for every broad market rental area and every dwelling category within the area. This is up to the rate of a four-bedroom property. The LHA for a five-bedroom building or more will be based on the rate for a four-bedroom property.
One other vital detail is that the local authority needs to publish the LHA rates. Authorities must take the proper steps to ensure that all eligible parties know of the current ones.
Because LHA rates come down to where you live, you need to look locally to find out more about housing benefit. You can visit official websites to discover more. To help start things off, we’ll discuss some important details here.
Local housing allowance in Newham
Under the LHA rules, benefit gets paid straight to the tenant rather than the landlord. So, it’s the tenant’s job to ensure they pay the rent to their landlord. Plus, if the rent exceeds the LHA rate, the tenant must make up the difference.
People get the housing benefit every fortnight in arrears. It will get paid straight into the building society or bank account. Officials cannot pay benefits into post office accounts. Should a tenant not already have a suitable account, it’s recommended they open one. This means they can make arrangements to pay the landlord the rent.
However, the council will be able to pay benefits to the landlord if they determine the tenant will struggle to pay rent. Also, they can consider making payments direct to the landlord if it will help the tenant in retaining or securing tenancy. Should the council decide to take this route, they will write to the landlord for additional details. In the event they pay them, they will get housing benefit in arrears every four weeks.
Review times
After you’re in receipt of your housing benefit, the relevant LHA rate utilised in the calculation will persist until the next yearly review. Although, the council will need to review sooner if there are changes in circumstances. This could be due to a change in address, the number of people in the household, or the relevant rent. One other could be a change in the quantity of bedrooms you are entitled to.
If you pay rent to a private landlord, the council will determine your housing benefit. They’ll use a maximum rent set by the LHA. This means the council won’t always use the actual weekly rent you pay to determine the housing benefit. They will only use up to the LHA rate to figure out the benefit, even if the actual rent is greater. As a result, it is critical for tenants to determine the LHA rate that is applicable to them. They must do this before deciding to rent a property.
Work with our team
We always go out of our way to ensure clients have the right information and services at their disposal. As one of London’s most experienced businesses, you can rely on us completely. Whether it is details on the local housing allowance in Newham or something else, we can help.
So, feel free to call or email us if there is anything we can do for you.
