Answers · UK 2025/26
How is the Local Housing Allowance (LHA) calculated for Housing Benefit?
Local Housing Allowance (LHA) is set at the 30th percentile of local private rents for each Broad Rental Market Area (BRMA) and bedroom size. It is not based on your actual rent — if your rent exceeds the LHA rate, you pay the difference. Rates were unfrozen in April 2024 but may not keep pace with future rent increases.
Full answer
**What is LHA?** Local Housing Allowance is the maximum rate of Housing Benefit (or Universal Credit housing element) payable to private renters. It is calculated per Broad Rental Market Area (BRMA) — there are 192 BRMAs in England — and per bedroom entitlement. **How the rate is set** LHA is set at the **30th percentile** of market rents in each BRMA for the relevant bedroom size. This means it covers the cheapest 30% of privately rented homes in the area. The Valuation Office Agency (VOA) surveys local rents annually. **LHA was frozen 2020–2024** Rates were frozen between 2020 and April 2024, meaning Housing Benefit fell further behind actual rents each year. From April 2024, LHA was reset to the 30th percentile of rents as of September 2023. For 2025/26 and 2026/27, rates may or may not be uprated — always check the current rate on the VOA or your council's website. **Bedroom entitlement** | Household | Bedroom entitlement | |---|---| | Single person under 35 | Shared accommodation rate (1 room in shared house) | | Single person 35 and over | 1 bedroom | | Couple without children | 1 bedroom | | Single parent, 1–2 children | 2 bedrooms | | Couple/single parent, 3+ children | 3 bedrooms | | Family needing 4+ bedrooms | 4 bedrooms (maximum) | **Example: Emma, 30, single, Leeds** Emma is under 35 — she is entitled to the shared accommodation rate (SAR), not a self-contained 1-bed property rate. If the SAR in her BRMA is £400/month and she rents a room for £450, Housing Benefit pays up to £400 and she pays £50 from her own funds. **The under-35 rule (shared accommodation rate)** Single people under 35 receive only the SAR unless they qualify for exceptions: have lived in a hostel for 3+ months, have a severe disability, or are a care leaver under 22. This is a significant restriction that can make private renting very difficult for young single claimants.
More answers
This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.