Local Housing Allowance

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Local Housing Allowance (LHA) was introduced nationally on 7th April 2008. All new claims and changes of address since this date are assessed under LHA rather than the old scheme.

This "new" way of working out Housing Benefit for tenants renting from a private landlord is based on the area you live in, who lives with you and how much income and savings you have.

The fundamental objectives of LHA are to make it easier for you to find out how much Housing Benefit you are entitled to and make it quicker for us to assess your claim. It gives you the choice of where you want to live and it is fairer as tenants in the same circumstances will receive the same amount of Housing Benefit. It also helps you to take responsibility for budgeting and paying your rent and this in turn will help you when you move into work.

Local Housing Allowance is still subject to a means test, just as the current scheme is. The key differences between the two schemes are:

LHA does not depend on how much rent you pay but on the size of your household. The LHA rate that you are entitled to will depend on how many people live with you and will vary from a one bedroom with shared facilities to a four bedroom rate. These rates are set by the Rent Registration Service for individual areas, known as Broad Rental Market Areas (BRMAs). The City of Dundee has only one BRMA and therefore one set of LHA rates which are advertised every month.
In most cases, Local Housing Allowance will be paid by direct payment to you and not to your landlord.

The current rates from Shared room rate to 4 bedroom rate are available on the Local Housing Allowance Rates page.

There are safeguards in place to protect both the tenant and the landlord, in certain cases for example where the tenant is vulnerable and cannot manage their own financial affairs.

Vulnerability and Direct Payments to Landlords under the Local Housing Allowance Scheme Policy (99KB PDF)

If you would like to see when your Housing Benefit cheque will be issued or when you will receive your Housing Benefit via BACS please follow the links.

For any other questions you may have with regards to Local Housing Allowance, please view our Frequently Asked Questions or pick up a leaflet from any of our Benefit Enquiry Offices, your local Library or Community Centre. Alternatively, you can contact us on (01382) 431205.

You can also download the following leaflets:-

Local Housing Allowance - A Guide to Tenants Leaflet (311KB PDF)
Local Housing Allowance - A Guide to Landlords Leaflet (304KB PDF)

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