Finefair Ltd strives to offer its clients the greatest property services possible. At the same time, we want to ensure that everyone stays well informed about different matters. Areas we work in include lettings, management, guaranteed rent, and more. Also, you can learn about local housing allowance in Merton. Carry on reading if you wish to discover more about this topic.
Information on LHA
Local Housing Allowance (LHA) arrived in 2008. It is a way for councils to calculate the Housing Benefit Entitlement for those living in the private sector. LHA applies to Scotland, England, and Wales.
The shift to LHA was interesting to say the least as well. Previously, we based housing entitlement on the 50th percentile or median value of an area’s private rental accommodation. After things changed, we started basing it on the 30th percentile.
The most notable thing about this allowance is that those who can get help stand to get a suitable amount for the area. It’ll mirror the price other individuals pay to rent privately here. Entitlement will represent similar buildings with the same amount of bedrooms, making it very fair.
Local Housing Allowance in Merton
Merton Council has a fair amount of information on LHA and housing allowance on its website. This information is designed to be easy to understand. To give you a little help, we are going to talk about some of these details here.
Firstly, there is the matter of who dictates the LHA rates. They are decided every year prior to April. The Department for Work and Pensions utilises the LHA rates supplied by the Valuation Office Agency. They acquire market evidence about rents in certain areas. We call them Broad Rental Market Areas. LHA rates are provided for numbers of bedrooms, up to a total of four.
It’s also necessary to know what everyone uses LHA rates for. When the council works your housing benefit entitlement out, they must use a level of rent in the calculation. This is known as eligible rent. The LHA rates supply the council with a figure to work out the eligible rent they’ll use.
LHA rates vary yearly. As a result, the date people claim housing benefit can influence the amount of rent the council uses to work it out. The year runs from April to March.
People are also free to use rates for local housing allowance in Merton and other areas to see whether the rent of a home they are moving into compares to the LHA rate they’ll be entitled to. Moreover, they can see if there is a shortfall in the benefits the council awards. This permits them to make more informed choices about the sort of accommodation to move to and if it will be affordable.
Determining what they will receive
The rate of LHA employed will be based on what BRMA the home belongs to. It is also based on the amount of bedrooms a claimant is entitled to according to the amount of individuals living with them. Also, the circumstances, ages, and genders of these people are important.
Then there are the shortfalls. Let’s say there is a gap in the total eligible rent the council will use and the rent for the property. In this case, people have to determine whether they are able to pay the difference from their income or will need to look at different accommodation. It might be possible to obtain discretionary housing payment if a shortfall occurs. However, the council won’t be able to inform a claimant in advance if this is possible.
Expert services
We appreciate the fact that there is all sorts to discuss with housing. It can be difficult for anyone, including tenants, landlords, and investors. Fortunately, there is plenty of info for you to browse. All you need to know is where to find it. You can look on official websites for information on local housing allowance in Merton.
Landlords and investors are also free to talk to us about anything that interests you. Call or email us today.
