Information for Tenants

Local Housing Allowance (LHA) will only affect certain tenants in the private rented sector. LHA is fairer and also gives tenants more choice in where they live.

• LHA would be paid based on the size, composition and location of the household. Therefore two households in similar circumstances in the same area would be entitled to the same amount of LHA, whereas now people living in smaller and less attractive properties gets less benefit than people living in larger and more attractive properties.

• LHA gives tenants better choice. Tenants would be able to shop around with their allowance and choose between the quality and price of their accommodation. Tenants can choose a tenancy that is below the appropriate LHA rate and keep benefits up to £15 above the LHA, which could be spent on other things.

For example, the rent charge is £70 per week and the LHA rate is £90 – the tenant has benefit of £85 per week.

• Tenants will know in advance how much eligible rent is payable for a property, unlike the current system where tenants have to wait several weeks. A simpler system will also speed up administration of Housing Benefits.

Paying your rent

• Usually LHA will be paid directly to you and it would be your responsibility to pay your landlord. You may be evicted from your property if you don’t pay your rent.

• If you do not have a bank account already, you will need to set one up. This will enable you to pay your rent to your landlord by direct debit or standing order. You can get advice about opening and running a bank account from any bank or building society of your choice. You can also get advice from welfare organisations such as Citizen Advice Bureau.

• If you are worried about managing your money, get in touch with us. In special circumstances, we can make payments to your landlords.

• Application for Direct Payment to Landlord
• Local Housing Allowance Safeguard Policy