Finefair’s job is to provide its clients with first class services. At the same time, we see that everyone remains well informed on crucial topics. This includes things like guaranteed rent, council leasing, and property management. Furthermore, we can supply details on the local housing allowance in Islington. You can rely on us if you need any help.
Introducing LHA
Local housing allowance (LHA) came from the UK Government in 2008. They chose to introduce it to create a fairer way to calculate Housing Benefit entitlement for any tenant renting private sector accommodation in Wales, England, and Scotland. It can be trickier for councils here than it is to issue benefits for their own tenants.
The change to LHA signalled a massive shift in the ways councils pay housing benefits, and restrictions. Among these changes, the most notable was the one to base entitlement on the 30th percentile of rental accommodation rather than the 50th.
LHA uses private market rental rates so the council can see what people in the region pay. This is what we call a BRMA. The idea is to check the rates for the same number of bedrooms in a structure in an area. Ultimately, it ensures tenants can claim similar amounts of money for similar homes whether they rent privately or with the council.
Important dates
January is when the LHA rates get set, and April is when they go into effect. Existing LHA rates, by postcode and local authority, are available from the Valuation Office Agency.
It’s the job of the rent officer to generate a list of LHA rates for each broad market rental area every year. There needs to be a rate for the groups of dwelling in these areas. This is up to four-bedroom houses.
The local authority must also publish LHA rates. They need to ensure that current ones remain visible to all eligible parties.
Details of local housing allowance in Islington
LHA rates change with each locale. As a result, you must look locally to find out more about housing benefit. There are important details in Islington you need to be aware of. To obtain more information, you can look on the council’s website. To help, we are also going to talk about some of the essential details here.
For one thing, if someone has been gaining housing benefit since 7th April 2008 or prior, the LHA will only apply in certain cases. They include if they have a break in the claim or change address.
As for how much housing benefit can get paid, let’s say that the LHA rate is lower than the rent. Here, the claimant will have the responsibility for paying the shortfall. Should the LHA rate exceed the rent, the benefit will be up to the amount of the housing; there won’t be any excess to spend on things other than the rent.
If someone can receive LHA, the payments go straight into their bank account. This happens two weeks in arrears. Islington council won’t normally pay the agent or landlord. The goal is to empower the tenant to pay their rent.
There are some restrictions for single individuals 35 and under too. In this case, when they rent from a private landlord, they will typically only be entitled to a certain amount of housing benefit. This will be sufficient to cover the average cost of one room in a shared house in the community. This is known as the ‘single room rent restriction’.
You’ll get all the help you want here
We are well known for supplying the largest collection of real estate services to clients. They are available all over London. You can come to us for management, guaranteed rent, and much more. In addition, we can aid with things like local housing allowance in Islington. Our goal is to make sure all landlords understand the things that can have an impact on tenancies, their income, and more.
So, if you’re in need of advice or help, or want a fantastic service, talk to us.
