Local Housing Allowance, or LHA, is the figure used to work out how much help you can get with rent in the private rented sector. If you claim Universal Credit or Housing Benefit and you rent from a private landlord, your housing support is usually capped at the LHA rate for your area.
LHA does not change what your landlord charges. It sets the most the benefit system will pay towards it. If your rent is higher than the LHA rate, you normally have to cover the difference yourself.
How LHA rates are set
Rates are set by area, using something called a Broad Rental Market Area, and by the size of home you are entitled to. There are different rates for a room in shared housing, a one bedroom, two bedroom, three bedroom and four bedroom home. The rates are reviewed by the government and can change, so always check the current figure for your postcode.
The shared accommodation rate
If you are single and under 35 with no dependants, your LHA is usually limited to the shared accommodation rate. This is the lowest rate and it is based on renting a room in a shared house with shared kitchen or bathroom, rather than a self contained flat.
There are exceptions. People over 35, couples, people with children, some care leavers under 25, and some people who have lived in a homeless hostel can qualify for a higher rate. If you are not sure which rate applies to you, an adviser can check.
Why this matters when you look for a room
Knowing your LHA rate helps you search sensibly. If you look only at rooms priced at or below your rate, you are less likely to end up with a shortfall you cannot cover. When you search for a room, you can focus on Universal Credit accepted and Housing Benefit accepted listings, then check the rent against your rate.
Supported and exempt accommodation works differently. In those cases the rent is often assessed under older Housing Benefit rules rather than LHA, which can mean more of the rent is covered. Our guide on Housing Benefit and supported living explains how that works.
What to do if there is a shortfall
If the rent is above your LHA rate, you have a few options. You can look for a cheaper room, ask the landlord whether the rent is negotiable, or apply for a Discretionary Housing Payment from your council for short term help. Our guide on Discretionary Housing Payments covers who can apply.
What to do next
- •Check the current LHA rate for your postcode and household size.
- •Work out which rate applies to you, especially if you are single and under 35.
- •Search for rooms at or below your rate so you avoid a shortfall.
- •Speak to an adviser if your situation is unusual, for example if you are a care leaver or have lived in a hostel.