Local Housing Allowance

LHA was introduced in April 2008 as a new way of calculating Housing Benefit for tenants who rent privately. It is based on the area you live in and the number of people living in your household. LHA is a much fairer way of calculating Housing Benefit, as it ensures that tenants in similar circumstances in the same area receive the same amount of financial support for their housing costs.

An advantage of Local Housing Allowance is that it is possible to find out the maximum Housing Benefit that is available before renting a property.

In most cases the Local Housing Allowance will be paid to the tenant rather than the landlord.