Finefair Ltd has always wanted its clients to receive the highest quality services. At the same time, we want to make sure everyone has the information they need. There are numerous areas we specialise in. Examples include property management and guaranteed rent. Also, we can advise about local housing allowance in Kensington and Chelsea and other areas. You’ve come to the right place for help.
What is LHA?
Local Housing Allowance, LHA for short, was initially introduced in 2008 by the UK Government. It offers councils a way of calculating Housing Benefit entitlement. This is for tenants that rent private sector accommodation in Scotland, Wales, and England.
The shift to LHA signalled a massive change in how councils can pay housing benefit, and restrictions. Among the changes, the most notable is basing entitlement on the 30th percentile of rental accommodation in the local community. Previously, the basis was the 50th percentile or median mark.
LHA makes use of private market rental rates to see what people are paying to rent in their community. We call this BRMA. It inspects rates for the same amount of bedrooms in the home. The purpose here is to guarantee that tenants can claim the same benefits if they rent privately.
When do LHA rates go into effect?
January is when LHA rates get set, and April is when they take effect. This is the same whether it is local housing allowance in Kensington and Chelsea or any other area.
Current LHA rates, by postcode and authority, are available from the Valuation Office Agency. The rent officer creates a list of LHA rates for each broad market rental location. It’s the same for the categories of dwelling in these locales. This is up to the rate of a four-bedroom property; you can’t get benefits for more bedrooms.
One requirement the local authorities have is to publish LHA rates. As a result, they need to guarantee that present rates stay visible to all eligible parties. This will make it easier for you to learn about LHA.
Local housing allowance in Kensington and Chelsea
Because LHA rates rely on the area, you must look locally to find out more about housing benefit. Kensington and Chelsea has its own unique information to take note of. We are going to talk about some of these details here. You can also view their website for more information.
The benefit cap
Let’s go over how the benefit cap works here. This is the limit on the total benefits a claimant can receive. It applies to the majority of individuals aged 16 or over who haven’t reached pension age.
You aren’t affected by the cap if you are a pensioner. If you are in a relationship and one of you is under this age, the cap could apply.
You also don’t need to worry if your partner gets Universal Credit (UC) and you both earn over £569 together. This is after National Insurance and tax contributions.
Also, you won’t be affected if you get Working Tax Credit, or if you receive UC since you care for a disabled person.
Lastly, you won’t have the cap if you get UC due to a health condition or disability that stops you from working.
This cap also won’t affect you, your partner, or children under 18 living with you if you get certain payments, such as Armed Forced Independent Payment and Armed Forces Compensation Scheme. Others include Disability Living Allowance (DLA), Carer’s Allowance, Attendance Allowance, Employment and Support Allowance, and War Pensions.
The amount you will receive for local housing allowance in Kensington and Chelsea via the benefit cap depends on certain factors. They include whether you are single and have your children living with you, or if you’re single or in a couple. It also depends on whether you live outside or in Greater London.
Work with the Finefair Ltd team
We aim to supply clients with the most extensive list of services. Our team can aid you with things like property management and guaranteed rent. We also offer portfolio reviews, support with getting new assets, and much more.
In addition to our services, we provide plenty of useful information for landlords and investors. This includes details that can affect their income, including local housing allowance in Kensington and Chelsea.
Give us a call today to find out what we can do for you or to ask for more details.
