Finefair Ltd is the perfect team because we do our utmost to make sure landlords and investors get what they need. This includes useful information as well as industry leading services. We can help with various areas, including portfolio reviews, guaranteed rent, and management. Plus, we look at things like local housing allowance in Sutton. It is important to note things like this because it can affect how people pay their rent.
A look at LHA
People in various parts of the UK can claim from the government if they need help paying their rent. It is easier to do this when they have social housing. However, according to official statistics, more households rent privately at the moment (4.4 million or 19% vs 4 million or 17%). So, the government needed a solution to make it easier to support them. This was Local Housing Allowance.
What LHA does is help councils to determine Housing Benefit Entitlement for people who live in privately rented homes. It is available for England, Wales, and Scotland.
The goal with LHA is it makes it fair. It uses private market rental rates to establish how much people typically pay to rent different size properties in areas. It then works out how much people can claim for housing benefit for a one bed, two bed, three bed, or four bed home in a broad market rental area (BRMA) based on these figures. LHA is at the 30th percentile of the rates rather than the 50% or median it was.
Details for local housing allowance in Sutton
LHA and housing benefit is something landlords should consider. It is especially important if their tenants will be relying on it to pay part of their rent. Luckily, you can find out more about it online. Sutton Council’s website is a good starting point. You can also check the rates at the Value Office Agency.
A crucial thing to keep in mind is LHA depends on the number of people in the household. You can claim for up to four bedrooms in a property. Bedrooms can be for:
- Each adult couple
- Any adult age 16 and over
- Two children of the same sex
- Any two children under the age of 10
In addition, there are also some special rules for other households. For example, bedrooms may be allowed for:
- People under 22 who are leaving care
- Anyone in the household with a severe disability
- Joint tenants
Payments
Generally the idea with LHA is it empowers tenants to pay their rent. With that in mind, the council will typically pay housing benefit to them. It is then their responsibility to ensure they are paying the landlord.
However, Sutton Council respects that some people find it difficult to manage their finances. They may be vulnerable because of learning difficulties, medical conditions, dependencies (alcohol, drugs, or gambling), or illiteracy. Some people may also have a history of fraud, debt, or rent arrears. With that in mind, the local authority may decide it is better to pay the housing benefit directly to the landlord. This safeguards both parties.
The Council will decide what to do on a case by case basis. They may even decide they only need to pay the landlord directly temporarily. This can give tenants the chance to get a review and show they can pay the rent themselves.
Do you want professional services?
Finefair Ltd has a long history of supporting landlords and investors with assets in London. We ensure we can help wherever we can, whether it is arranging guaranteed rent or offering advice about HMO conversion, LHA, and more. Working with us is rewarding, and we can arrange flexible, dynamic solutions for various needs.
So, if you need help with local housing allowance in Sutton or any other area of letting/leasing, contact us. We’d be happy to advise you.
