Local Housing Allowance Rates

Local Housing Allowance (LHA) was introduced in 2008 to provide Housing Benefit entitlement for tenants renting private-sector accommodation in Scotland, England, and Wales. Its introduction meant significant changes to the way Housing Benefit levels were calculated and how benefit was paid. It did not replace Housing Benefit.  It was just a different way of calculating entitlement under the existing Housing Benefit scheme. The LHA was based on the 30th percentile of local rented accommodation with restrictions being brought in over the years.

LHA rates relate to the area in which the housing-benefit claim is made. These areas are called "Broad Rental Market Areas" (BRMAs), defined as "where a person could reasonably be expected to live taking into account access to facilities and services", and a selection of rents in the area are used to determine the LHA for each category of housing in the area. The rates are shown on a weekly basis and are published once a year in accordance with legislation.

The Rent Officer maintains rental information for each category of LHA rates. Mathematical calculations are applied to the list of rents to determine the LHA rates.