Finefair Ltd always does everything it can to meet the needs of its clients. This includes offering unrivalled property services. Also, we can offer them information on a wide array of topics. Examples include property management and guaranteed rent. The team even knows its fair share about local housing allowance in Richmond upon Thames. If this is what you’re here to learn about, continue reading.
The introduction of LHA
In 2008, the government brought us local housing allowance (LHA). It provides a way of calculating Housing Benefit entitlement for any tenants renting private sector housing in Wales, Scotland, or England.
LHA’s adoption resulted in major changes to how councils work out and pay housing benefits. Restrictions changed too. Most notably, there was the change to basing entitlement on the 30th percentile of rental accommodation in the area; before, they would use the 50th percentile or median.
For LHA to work, officials use private market rental rates to determine what people are paying within an area. We refer to this as BRMA. There will be rates for different numbers of bedrooms in a building. As a result, it can make certain that people can claim similar benefits when they rent privately, taking into account a fair rate for similar properties.
When do officials set the LHA rates?
If you’re wondering when rates for local housing allowance in Richmond upon Thames get set, it tends to happen in January. Then, they take effect in April each year. The rent officer produces a list of LHA rates for every broad market rental area at the time. They do the same for each dwelling category in the area. This is up to four-bedroom properties. For properties with five bedrooms or more, tenants can only claim the four-bedroom rate.
One other important thing to know is that the local authority must publish LHA rates. It’s necessary for authorities to take the right steps to make sure all eligible parties know of the current rates. You can also check with the VOA.
Because LHA rates come down to where you live, you need to look at the information locally. You will find out what you need to about housing benefit this way. There are websites you can go to for details. To help you get started, we’re going to discuss some important points here.
Local housing allowance in Richmond upon Thames
If you’re paying rent to a private landlord, the council will determine your housing benefit utilising a maximum rent. This is one set by the LHA. They won’t always make use of the actual weekly rent a tenant pays to figure their housing benefit out. If the actual rent exceeds the LHA rate, the council will only use this rate to determine the tenant’s benefit. As a result, it’s vital for people to discover the LHA rate relevant to them before deciding to rent.
Let’s go over what happens if your rent decreases or increases. If your rent goes up after 1st April 2023 but is lower or still at the LHA rate, the council will increase the total they pay. This is up to the new rate you are paying. However, they won’t be able to pay more if the rent surpasses the LHA rate. You will need to cover the rest.
Should your rent decrease after 1st April 2023 and it is below the LHA rate, the council will lower the max rent. They will do so to the new lower amount you are paying. As a result, you won’t get any surplus money.
Paying benefits to landlords
Usually, local housing allowance in Richmond upon Thames will be paid to the tenant so they can have responsibility for paying rent to the landlord. Some individuals may be convinced that they will have trouble paying though. Here, they can ask the council to pay their benefit straight to the landlord.
Additionally, the council will consider paying housing benefit to the landlord if it will help you get new tenancy. It is the same if you want to keep an existing tenancy. They will only consider this if the rent is within the LHA rates. Alternatively, they must be happy that you can afford to pay the difference.
We will get you the help you need
Our team here at Finefair Ltd works hard to ensure clients have all the information they need. These details complement our services well. As one of London’s most respected establishments, you can come to us anytime you need help with assets. At the same time, we can tell you about the local housing allowance in Richmond upon Thames and other parts of London.
So, let us know if there is anything we can do for you.
