Finefair Ltd works to give its clients the finest services possible. Moreover, we give you all the information you desire. There are many subjects we specialise in here. Examples include property management and guaranteed rent. We’re also up to speed about local housing allowance in Southwark. Our people can help if you’re struggling in this area.
Understanding LHA
Local housing allowance (LHA) came to the UK in 2008, introduced by the government. The purpose of it is to give a way of determining Housing Benefit entitlement for tenants renting private sector housing in England, Scotland, and Wales.
The move to LHA resulted in a huge shift to the way councils paid housing benefit, as well as the restrictions. The most noteworthy change here was the one to basing entitlement on the 30th percentile of rental accommodation. Before, the basis was the 50th percentile or median.
LHA makes use of private market rental rates to find out what people are paying in the area. We call this BRMA. It inspects rates from the same quantity of bedrooms in each structure. The intent here is to ensure that tenants living in places with similar properties can claim similar amounts of money. The rules of local housing allowance in Southwark aid councils with managing costs too.
When do LHA rates go into effect?
January is the month when LHA rates get set. April is the one where they take effect. You can find the current LHA, by postcode and local authority, from the Valuation Office Agency. The rent officer creates a list of LHA rates for every broad market rental area. There will be values for various categories of dwellings in these areas, up to the rate of a four-bedroom home.
The local authority has to publish LHA rates. Also, it is necessary for them to check that the current ones remain visible to all eligible parties. Because LHA rates depend on the area, you must look locally to find out more about housing benefit. Southwark has a few important details to note. You can visit their website to obtain information. To give you a helping hand, we are also going to discuss some of them here.
Rules for local housing allowance in Southwark
You are able to claim housing benefit if you’re a private, council, or housing association tenant. Separate rules exist here for public and private tenants.
For private, what you will receive will come down to the LHA. The council will determine your benefits based on whether you have a spare room and eligible rent. Another vital detail is your household income, including savings, pensions, and benefits. The status of the people living with you is also important, like whether they have a disability or their age.
It is also vital to know about eligible rent. This means the reasonable rent for an appropriate property in Southwark. It includes service charges but not details like heating.
As for spare bedrooms, the council might lower your housing benefit if you’re under 65 years old. It is the same if you reside in social housing and have a spare bedroom. Sometimes, this is referred to as a bedroom tax. The reduction is 14% of the eligible rent for a single spare bedroom and 25% of the eligible rent for two or more bedrooms.
The number of bedrooms you’re allowed
It is important to look at the bedroom allowance rules with local housing allowance in Southwark. Every household will need to consider them.
Firstly, you can have one bedroom for a couple and a person aged 16 or over. You can also have one for a child who can’t share a bedroom due to medical or disability reasons. You can get a bedroom for two children under 16 of the same sex and two children under 10 no matter the sex. Another would be for a child that would usually share but shared bedrooms have been taken. Finally, there is one for a non-resident overnight carer for your partner or yourself.
You are able to get a spare bedroom for an approved foster carer between placements (up to 52 weeks from the end of their last placement). It is the same for a newly approved foster carer for up to 52 weeks from the approval date if there is no child with them during that period.
We’ll help you however we can
Finefair Ltd supplies the most extensive collection of services to clients. The aim is to ensure that landlords and investors know what to expect and where they stand. To this end, we can help you with the local housing allowance in Southwark and more. We can also look at other subjects such as guaranteed rent, HMOs, and more.
So, if you’d like us to help you, feel free to get in touch.
