Local Housing Allowance 2026: How Much Housing Benefit for Private Renters?
LHA is set at the 30th percentile of local rents per bedroom category. How BRMAs, bedroom entitlement and regional LHA rates work in 2026/27, with London vs Manchester examples.
What is Local Housing Allowance?
Local Housing Allowance (LHA) is the rate used to calculate the maximum rent subsidy for private tenants claiming Housing Benefit or the housing element of Universal Credit. It was introduced in 2008, replacing the old system of individually assessed rent levels.
The key principle: LHA is set at the 30th percentile of local market rents. In other words, it represents the rent level at which 30% of properties of the relevant size in the area are available.
Why the 30th percentile matters
Before 2011, LHA was set at the 50th percentile (median) — meaning 50% of properties should be affordable. Cuts reduced it to the 30th percentile and then froze it entirely from 2020 to 2024, meaning LHA rates fell well below actual market rents in many areas. From April 2024, the government restored the 30th percentile link, providing a significant uplift for many claimants in high-rent areas.
How BRMAs work
The UK (in the context of LHA) is divided into approximately 150 Broad Rental Market Areas (BRMAs), each set by the Valuation Office Agency (VOA). A BRMA broadly reflects a travel-to-work catchment area.
London is divided into 12 BRMAs:
- Inner London: Central London, Inner East London, Inner North London, Inner South East London, Inner South West London, Inner West London
- Outer London: Outer East London, Outer North East London, Outer North London, Outer South East London, Outer South West London, Outer West London
Each BRMA has its own LHA rates for each bedroom category. You are allocated to the BRMA for the area where you live (not where you work).
Bedroom entitlement rules
Your LHA rate is based on how many bedrooms you are entitled to:
| Household | Bedrooms |
|---|---|
| Single person under 35 | SAR (shared room) |
| Single person aged 35+ | 1 bedroom |
| Couple without children | 1 bedroom |
| Single parent: 1 child under 16 (opposite sex to parent) | 1 bedroom if parent + child can share, else 2 |
| Single parent: 1 child 10+ (same sex) | 2 bedrooms |
| Couple: 1 child | 2 bedrooms |
| Couple: 2+ children of same sex under 16 | 2 bedrooms |
| Couple: 2 children of different sex, both under 10 | 2 bedrooms |
| Couple: 2 children, one aged 10+, different sex | 3 bedrooms |
| Larger households | Up to 4 bedrooms maximum |
The rules are complex and HMRC provides a bedroom entitlement calculator. The key principle is that children under 10 are expected to share regardless of sex; children 10 and over of different sexes each need their own room.
Regional LHA rate examples (2026/27 indicative)
LHA rates change annually in April. The figures below are indicative of the 2026/27 rate bands based on the 30th percentile methodology. Always check the current rate for your specific BRMA at gov.uk.
Inner North London BRMA
| Category | Approximate weekly LHA | Monthly equivalent |
|---|---|---|
| Shared accommodation (SAR) | £210–£230 | £910–£996 |
| 1 bedroom | £340–£370 | £1,473–£1,603 |
| 2 bedrooms | £450–£490 | £1,950–£2,123 |
| 3 bedrooms | £560–£610 | £2,427–£2,643 |
| 4 bedrooms | £710–£760 | £3,077–£3,293 |
Greater Manchester (Manchester City) BRMA
| Category | Approximate weekly LHA | Monthly equivalent |
|---|---|---|
| Shared accommodation (SAR) | £90–£105 | £390–£455 |
| 1 bedroom | £135–£155 | £585–£671 |
| 2 bedrooms | £175–£200 | £758–£867 |
| 3 bedrooms | £215–£245 | £932–£1,062 |
| 4 bedrooms | £280–£320 | £1,213–£1,386 |
Leeds BRMA
| Category | Approximate weekly LHA | Monthly equivalent |
|---|---|---|
| Shared accommodation (SAR) | £85–£100 | £368–£433 |
| 1 bedroom | £120–£140 | £520–£607 |
| 2 bedrooms | £155–£175 | £672–£758 |
| 3 bedrooms | £190–£215 | £823–£932 |
| 4 bedrooms | £250–£285 | £1,083–£1,235 |
The contrast between Inner London and Leeds is stark — a family with 3 bedrooms entitled may receive over twice the LHA rate in Inner London compared to Leeds.
The SAR (Shared Accommodation Rate) for under-35s
Single people under 35 are entitled only to the SAR — the cost of a single room in a shared house, not a self-contained flat. This applies even if the person lives alone in a one-bedroom flat.
If your rent for a one-bedroom flat is £900/month and the SAR for your BRMA is £500/month, your LHA is capped at £500. You fund the remaining £400 yourself.
Exemptions from the SAR
The following groups are entitled to the one-bedroom rate even if they are under 35:
- You have a dependent child living with you for whom you receive Child Benefit or the child element of UC.
- You are a care leaver under 25.
- You have been rough sleeping and are receiving support from a local outreach or resettlement service.
- You receive the daily living component of PIP or the care component of DLA.
- You have been assessed as unable to share accommodation due to severe disability.
- You are a former prisoner who has been homeless since release and are in certain support accommodation.
Discretionary Housing Payments
If your rent is higher than your LHA rate and you are struggling to meet the shortfall, you can apply to your local council for a Discretionary Housing Payment (DHP). These are discretionary — the council is not obliged to award one and has a limited budget — but they are specifically designed to bridge short-term rent gaps for claimants in difficulty.
DHPs can be awarded as weekly payments added to your HB/UC, one-off lump sums, or both. They are typically short-term (weeks to months) and require reapplication.
Frequently asked questions
How is Local Housing Allowance calculated?
LHA is set at the 30th percentile of local market rents for each bedroom category in a Broad Rental Market Area (BRMA). This means 30% of properties of the relevant size in the area should be at or below the LHA rate.
What is a BRMA?
A Broad Rental Market Area is a geographic zone defined by the Valuation Office Agency. Each BRMA broadly corresponds to a travel-to-work area — large urban areas may have multiple BRMAs (London has 12), while rural areas may have one covering a large region.
What happens to the LHA gap between my rent and the allowance?
You pay the difference yourself. If your rent is £900/month and your LHA rate is £750/month, you must find £150/month from other income. There is no automatic entitlement to extra help, though local councils have Discretionary Housing Payments for temporary shortfalls.
Am I entitled to a one-bedroom LHA rate if I live alone?
It depends on your age. Single people under 35 are restricted to the Shared Accommodation Rate (SAR) — the cost of a room in a shared house — unless you qualify for an exemption (disability, care leaver status, etc.). Those aged 35 and over are entitled to the one-bedroom rate.
Are LHA rates different in London?
Yes, significantly higher. London is divided into 12 BRMAs with different rates. Inner London BRMAs (e.g. Central London, Inner North London) have substantially higher rates than Outer London BRMAs. Even so, LHA rates often fall well below actual central London market rents.
When are LHA rates updated?
LHA rates are reviewed and updated annually from April. The Valuation Office Agency (VOA) collects rental market data from lettings agents and other sources each autumn. Since 2024, the government has committed to maintaining rates at the 30th percentile of local rents.
Try the calculators
Related reading
Housing Benefit and Local Housing Allowance: Complete Guide 2026/27
Who can still claim Housing Benefit in 2026/27, how Local Housing Allowance (LHA) rates work, bedroom entitlement rules, and how the benefit cap affects your award.
Habitual Residence Test UK 2026: Who Qualifies for Benefits?
The Habitual Residence Test (HRT) applies to Universal Credit, Housing Benefit, JSA, and Pension Credit. Who passes, who fails, and how returning UK nationals and EEA nationals are assessed.
Universal Credit Housing Costs 2026: LHA, Bedroom Caps & What You Can Claim
Universal Credit housing element in 2026 is based on Local Housing Allowance rates, bedroom entitlement, and rent charges. We explain how to calculate your housing cost element.