Landlord Section – Local Housing Allowance (LHA)

Local Housing Allowance (LHA) will apply to most private tenants who have moved home or who make a new claim for Housing Benefit (HB) after 7th April 2008. Claims that were made before this date will continue to be determined under the old eligible rent provisions until such time as their claim comes to an end or they move address. Please note a new claim must be made after there has been a break in a claim.

How does LHA affect Landlords?

The only change most landlords will notice is that the payment of Housing Benefit will normally be made to the tenant and that there is no automatic right for the claimant to reassign their payments so that they go directly to their landlord. It will be their responsibility to make rent payments to you in the same way a tenant not in receipt of benefit would.

Who is affected and unaffected by these changes?

LHA will affect any landlord who enters into a deregulated private tenancy after the 7th April 2008, with the following exceptions:

  • Tenancies with registered social landlords
  • Some supported accommodation
  • All tenancies begun before the 15th January 1989
  • Tenants of caravans, houseboats, and hostels
  • Tenants whose rent comprises a substantial charge for board and attendance.

Why has LHA been introduced?

LHA has been introduced for the following reasons:

  • Fairness: Under LHA the maximum amount paid to tenants would be based on the size, composition and location of the household, in other words two households in similar circumstances in the same area would be entitled to the same amount of HB.
  • Choice: LHA encourages tenants to take on greater responsibility and choose how to spend their income in a similar way to other tenants who are not in receipt of benefits.
  • Transparency: The current link between HB and individual rent is complex. It does not state clearly what level of support is available for people on low incomes. A clear and transparent set of allowance rates will enable tenants and landlords to know the maximum HB is available from the state.
  • Personal responsibility: The Government believes that, where possible, LHA should be paid to tenants, alike most other benefits and tax credits, empowering people to budget and pay their rent themselves. This will develop skills unemployed tenants need to move back to work.
  • Financial inclusion – Ideally, we want people to have their HB paid into a bank account and to set up a standing order to pay the rent to their landlord.
  • Improved administration and reduced barriers to work: A simpler system will speed up the administration of housing benefits. A transparent system will encourage people to move area to seek employment opportunities.

What does this mean for me?

Existing HB claimants – if you currently receive HB in respect of a tenant and they do not have an event that leads to their entitlement ending and they do not move address, you will still continue to receive HB payments in the manner you currently are.

For new tenants and those who have made a new claim for benefit – normally you will not receive HB payments unless there are specific reasons not to.

What are the specific reasons for not making HB payments to tenants?

For tenants who are unable to manage their affairs or where there is a risk that they may not pay their rent, payment may be made direct to the landlord where we believe they are vulnerable or at risk, and we may also make HB payments to you if your tenant has accrued rent arrears of 8 weeks or more.

How are the LHA rates determined?

Under LHA the applicable LHA room rate will be determined by the size and composition of the tenant’s household, and the Broad Market Rent Area that the property is in.

The number of bedrooms needed by the tenant’s family is determined by counting how many times their household falls within the categories listed below:

One bedroom for:

  • every adult couple
  • any other adult aged 16 or over
  • any two children of the same sex aged under the age of 16
  • any two children regardless of sex under age 10
  • any other child.

For example, a couple with 3 children, two girls aged 13 and 11 years, and a boy aged 8 years will get an LHA rate based on 3 bedrooms (one for the couple, one for the daughters, one for the son).

Single claimants aged less then 25 will qualify for the shared room rate.

How do I find out what the LHA rates will be?

Wrexham County Borough Council will publish the LHA rates that are applicable for the current month on this website. As the LHA rates are not dictated by the size or any other factor pertaining to the property the LHA rates will be of little use unless you apply them to find a family’s composition. For this reason the LHA rates are published on page that also includes a LHA room calculator which helps you determine the appropriate rate applicable for a family.

The LHA rates are provided monthly by The Rent Officer Service, who is an independent body.

Application for Direct Payment to Landlord

Application for Direct Payment to Landlord – Word format 77Kb

Application for Direct Payment to Landlord – PDF format 56Kb

Application for Direct Payment to Landlord – Plain Text format 187Kb

LHA Safeguard Policy

LHA Safeguard Policy – Word format 106Kb

LHA Safeguard Policy – PDF format 94Kb

LHA Safeguard Policy – Plain Text format 1.2Mb

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