Glossary · UK
What is Local Housing Allowance (LHA)?
The maximum Housing Benefit rate payable to private renters, set by the Valuation Office Agency at the 30th percentile of local rents in each Broad Rental Market Area.
Full Definition
Local Housing Allowance (LHA) is the method used to calculate the maximum amount of Housing Benefit or the housing cost element of Universal Credit that can be paid to a private tenant. It replaced the older "rent officer referral" system in 2008. LHA rates are set by the Valuation Office Agency (VOA) for each of the Broad Rental Market Areas (BRMAs) across England, Scotland and Wales based on the 30th percentile of rents paid for properties of different sizes in that area. The size of LHA entitlement depends on the number of bedrooms the claimant is entitled to under the "bedroom standard" -- broadly, one bedroom per adult couple, per single adult aged 35 or over, per two same-sex children under 16, per two children under 10, and per other child. Single adults under 35 are generally entitled only to the Shared Accommodation Rate (SAR), regardless of the type of property they actually rent. LHA does not determine how much a landlord can charge -- it sets a cap on housing support. If the rent is higher than the LHA rate, the tenant must make up the difference from their other income or benefits. LHA rates were frozen for several years following 2012 before being unfrozen and reset for 2024/25. The Department for Work and Pensions (DWP) announces annual LHA rates, and the VOA publishes the rate for each BRMA and bedroom category.