Finefair Ltd aims to give its clients the highest quality real estate services possible. At the same time, we want to ensure everyone is well informed on these subjects. We excel in areas like lettings and guaranteed rent. Also, we can cover things like local housing allowance in Tower Hamlets. If this is what you’re interested in, please continue reading.
LHA’s introduction
Local Housing Allowance (LHA) arrived in 2008. It provides a way for local authorities to determine the Housing Benefit Entitlement for those who rent in the private sector. LHA is applicable in England, Scotland, and Wales.
The move to LHA was one of the more interesting changes. Previously, housing entitlement was at the 50th percentile or median value of private rental housing in an area. Following LHA’s introduction, there was a shift to basing it on the 30th percentile. This was considerably fairer.
The best thing about this form of allowance is that people able to claim help will get an appropriate amount for the area. It will reflect the rates others pay to rent privately here. So, entitlement represents similar properties with the same quantity of bedrooms.
Local Housing Allowance in Tower Hamlets
There are websites containing vital details on the LHA here. To give you a head start, we are going to talk about some of them now.
The LHA rate the council uses will depend on the amount of bedrooms a tenant needs. This naturally depends on the household’s size. You can have one bedroom for any two kids of the same sex and any two under age 10 regardless of sex. You can also get a bedroom for any other child, every adult couple, and any other adult aged 16 or over. Under LHA, you can claim for up to four bedrooms.
Maximum Housing Benefit is also important. This will be based on the LHA rate instead of the charged rent. What this means is the quality and type of accommodation won’t influence the benefit. Rather, the council will look at the quantity of bedrooms needed and apply the right LHA. They will do so in force at the beginning of the month in which housing benefit entitlement starts.
By comparing LHA with those rents charged for available accommodation, potential tenants can make an informed choice. They can decide whether they can pay the rent prior to accepting a tenancy.
It is also important to note that tenants aren’t guaranteed to obtain the entire LHA amount. The LHA is merely the beginning amount for the housing benefit assessment. As for the actual amount, it will come down to the circumstances and income of the claimant.
Paying housing benefit
Under the rules for LHA, housing benefit will usually get paid to the tenant. They will generally not have the means to elect for it to go to their landlord. Although, there are circumstances where the council will do it. For example, they will when the tenant possesses rent arrears of eight weeks or over. It is the same if the DWP are making deductions from a tenant’s Jobseeker’s Allowance or Income Support to pay rent arrears. The council can also pay a landlord if it’s not likely the tenant will pay the rent, or if they are struggling to organise their own affairs.
However, it is rare for the council to pay the landlord indefinitely. One of LHA’s main purposes is for individuals that gain housing benefit to choose accommodation that they can afford. Plus, it wants to give the tenant’s responsibility for solidifying their tenancy by paying the rent. Therefore, tenants with arrears, or vulnerable ones, will be advised to gain budgeting advice. Once the arrears are clear, payments will usually begin going to the tenant.
Let us help you
We are a company that understands there are all sorts of details to consider with housing. This can make things difficult for anyone, even experienced property owners. Thankfully, we are here to keep everyone on the right track.
So, you can come to us if you wish to know more about the local housing allowance in Tower Hamlets or other topics. You can also rely on us to manage assets, arrange guaranteed rent, and more.
