At Finefair Ltd we work hard to ensure we can provide reliable info for our clients. We look at a number of different topics, including guaranteed rent, property management, leasing with councils, and even LHA. If you are specifically looking for details about local housing allowance in Barking and Dagenham, read on.
What is LHA?
The UK Government introduced local housing allowance in 2008. It provides a way to calculate Housing Benefit entitlement for any tenants that rent private sector accommodation in England, Scotland, or Wales.
The change to LHA made a significant adaptation to how housing benefits can be paid and restrictions. Most notable was the change to basing entitlement on the 30th percentile of rental accommodation in the local area. Before this the 50th percentile or median was used.
What local housing allowance does is use private market rental rates to look at what people are paying in the area (known as the BRMA). It looks at rates for the same number of bedrooms in the property or the number you need.
The goal here is to make sure that tenants in an area with similar properties can claim similar amounts. LHA also helps to control costs.
Local housing allowance in Barking and Dagenham
Because the LHA rates depend on the area, you need to check locally to find out more about the housing benefit. In Barking and Dagenham there are some very important things to note. The best thing to do is visit their website for details. However, we will also look at some of the main points here for you.
When people rent directly from the council or a housing association, the eligible rent is the max amount the local council can pay, even if you are paying a higher rate. There is a deduction for ineligible service charges. So, the eligible rent will be gross minus any fees not for communal areas. There can also be deductions if there are spare bedrooms in the property. It is important to note the bedroom requirements here.
Private tenants can also claim LHA. Any housing association tenants that pay market rent rates are considered alongside these renters. Here the eligible rent is the local housing allowance, calculated by looking at key things like your age, household size, and the local area. It also depends on the number of bedrooms you require, to a max of four. Again there are bedroom requirements to look at. Plus, there could be deductions for any spare bedrooms in the property.
Do you need any advice?
At Finefair Ltd we work to offer the broadest range of services. It can even include help with local housing allowance in Barking and Dagenham. This can be alongside support with buying assets, looking at services like guaranteed rent, and much more. At the end of the day, we want to give clients all the help they need and exceptional value.
So, why not speak to us to learn more? Get in touch today and we’ll be happy to advise you.
