Local Housing Allowance
What is Local Housing Allowance?
The Local Housing Allowance (LHA) is the maximum rent that Universal Credit considers when calculating how much housing support UK citizens are entitled to as private tenants.
For example, if your household earns £1,000 a month and your LHA rate is £850, your Universal Credit housing support allowance will be limited to £850, not £1,000.
How are Local Housing Allowance rates determined?
The government looks at the local private rental prices for each area and sets the LHA rates around the cheaper end of the market (roughly the 30th percentile) for various property sizes (1-bedroom, 2-bedroom, etc).
So suppose you need a house in Stratford (London) and specifically a 2-bedroom house (because you’re a couple with an 18-year-old adult child). If the average rental price for 2-bedroom houses in Stratford is between £1,400-£1,800, the LHA rate might be between £1,400 – £1,500 (the lower end of the market). As a result, your housing allowance will be restricted to £1,400 – £1,500.
How can I check the LHA rate for a particular property type and location?
Use this website.
