Local Housing Allowance (LHA)

LHA is used to work out housing benefit for tenants in privately rented accommodation. You may be eligible for help with mortgage interest payments. Income Support, Jobseeker’s Allowance, Employment and Support Allowance, or Pension Credit can include an amount for mortgage interest payments called Support for Mortgage Interest (SMI).

How much you get is usually based on the Local Housing Allowance Limit in your area, your income and circumstances.

If you’ve been getting Housing Benefit since before 7 April 2008, these limits only apply if you:

• change address;

• have a break in your claim for Housing Benefit.

The amount of LHA you get from the council may not be enough to pay all of your rent. If this happens, you will need to think about how you could make up any shortfall. Housing and homeless charity Shelter advises that options could include:

• applying to the council for a discretionary housing payment;

• looking at your monthly outgoings to see if you can make any savings;

• negotiating a cheaper rent with your landlord, in return for the council making your LHA payments directly to them;

• moving somewhere cheaper.

Usually, LHA is paid directly to the person who claims it, and that person is expected to pay the rent. However, the council must make the LHA payments direct to your landlord if:

• you have rent arrears of eight weeks or more;

• it is already making deductions from your income support, jobseeker’s allowance or employment support allowance to pay for rent arrears.

In some circumstances, the council can choose to pay your LHA direct to your landlord. It’s up to the council to decide whether to do this, but it might do so if:

• you’re likely to have problems paying your rent, for example if you have you have problems with drugs or alcohol, or you have a serious medical condition;

• you’re unlikely to pay your rent, for example if the council is aware you have consistently failed to pay the rent in the past.

Councils also have the right to pay LHA direct to a landlord if doing so will help someone to get a tenancy, or keep an existing tenancy.

For existing tenants — if the rent has been reduced to an affordable level (which is normally the LHA rate for the property).

For new tenants — if the rent has been reduced to an affordable level or direct payments will help a tenant keep their tenancy.

Before a council decides to pay LHA direct to your landlord, it will get information from people who can help determine whether it’s in your interests to do so. It might talk to your doctor and other health professionals, support workers, probation officers and others who know about your situation.