Finefair Ltd goes out of its way to guarantee that its clients receive top tier services. Furthermore, we want to ensure you are well informed. Topics we specialise in include property management, council leasing, and guaranteed rent. We also have details about local housing allowance in Havering and other parts of London. If you want to ensure you are clear on any subject, we can help you.
LHA’s introduction
Local housing allowance (LHA) first got introduced by the UK government in 2008. Its function is providing a way to calculate Housing Benefit entitlement. This is for tenants who rent in the private sector in Scotland, Wales, and England.
The shift to LHA signalled a massive change in how councils are able to pay housing benefits, as well as restrictions. For the changes, the clearest was the swap to basing entitlement on the 30th percentile of rental accommodation in the area. This was rather than the 50th percentile or median as the mark.
LHA makes use of private market rental rates to see what people are paying in the area. We call this BRMA. It looks at rates for the same number of bedrooms in the home. The goal here is to ensure that tenants living in a place with similar properties are able to claim similar amounts of money. The rules for local housing allowance in Havering also help to control costs.
When do LHA rates go into effect?
The calculation and decision on rates happens every January. The rent officer creates a list of LHA for each broad market rental area, and the categories of dwelling in these locales. They do this up to the rate of a four-bedroom house. Then, the rates take effect in April. Current LHA, by postcode and local authority, can be found at the Valuation Office Agency.
The local authority publishing LHA rates is a requirement. They need to ensure that present ones are visible to all relevant parties. As a result, you should have no trouble learning about it.
Rules for local housing allowance in Havering
LHA rates depend on the location. Thus, you must look locally to find out more about housing benefit. Havering has rules you must be aware of. It is a good idea to check the Council’s website to learn more. In addition, to give you an idea, we’re going to discuss some of the vital details here.
If you’re not renting from the council, your housing benefit will be based on the LHA. This will be the total your council can pay based on the household situation. The rates for LHA depend on the quantity of bedroom a tenant needs. One bedroom gets permitted for each adult couple, any other adult aged 16 and over, and two children of the same sex. It’s the same for any two children under 10 years old, regardless of gender, and any other child.
Most of Havering’s privately rented structures fall under the Outer North East London area. However, those with properties in postcodes RM13 93D and RM14 3PB, you will come under the South West Essex area. The independent rent officer dictates the area of your property and local housing allowance in Havering.
It is also important to talk about the benefit cap. This is a restriction on the total amount of benefits most individuals, between 16 and the qualifying pension age, can gain. The quantity your household gains from certain benefits will decrease. This will ensure you are not going over the cap.
The cap limit is £296.35 per week or £1,284.17 monthly if you are single without kids. It will also apply if your children don’t live with you.
It is £442.31 per week or £1916.67 monthly for a single parent with their children living with them. The same goes for couples with or without kids.
Work with our team
Finefair Ltd can offer much aid in your journey to understand important topics. If you are a landlord and need any help, we’ll do our best to assist you. In addition, you can rely on us if you want a top tier service for guaranteed rent, property management, and more. Just get in touch to learn more.
