Local Housing Allowance: How Housing Support Is Calculated
Local Housing Allowance caps how much help private renters get toward their rent through Universal Credit or Housing Benefit. This guide explains how the cap is set, how your bedroom entitlement is worked out, and what to do if your rent is above the cap.
Local Housing Allowance (LHA) sets the maximum amount of help toward private rented sector rent that the housing element of Universal Credit, or Housing Benefit, will pay. It is not based on your actual rent — it is a capped rate set for your local area and your household size. If your real rent is higher than the applicable LHA rate, the difference is not covered and you must find it from other income.
How Bedroom Entitlement Is Worked Out
LHA rates are set per bedroom category, and your entitlement is calculated allowing one bedroom for:
Each adult or couple
Any other adult (16 or over)
Two children under 10, regardless of sex
Two children under 16 of the same sex
A child who cannot share a bedroom for a disability-related reason, evidenced appropriately
The maximum bedroom category for LHA purposes is 4 bedrooms, even if your household would technically need more — any additional bedrooms above 4 are simply not funded.
The Shared Accommodation Rate
Most single claimants under 35 with no dependent children are restricted to the shared accommodation rate — the going rate for a single room in a shared house — regardless of whether they actually rent a self-contained flat. This is often significantly lower than the one-bedroom self-contained rate for the same area.
Exemptions from the shared rate include, among others:
Care leavers up to age 25
People who have lived in a homeless hostel for at least 3 months
Claimants receiving the severe disability premium, or certain other specified disability benefits
Some victims of domestic abuse under sanctuary scheme arrangements
Broad Rental Market Areas
LHA rates are set for each Broad Rental Market Area (BRMA) — a geographic area defined as having a reasonably consistent private rental market, which does not necessarily follow council or postcode boundaries exactly. Two neighbouring streets can technically sit in different BRMAs with different rates, so it is always worth checking the specific BRMA rate that applies to your actual address, not just the name of your town.
How Often Rates Are Reviewed
LHA rates are not automatically uprated every year in line with actual rent inflation. Rates were frozen for several years, then reset in April 2024 to the 30th percentile of local market rents in each BRMA before being frozen again. Because private rents can rise faster than LHA between reviews, the gap between real rent and the capped LHA rate tends to widen the longer rates stay frozen. Always check gov.uk or your local council for the current rate rather than relying on an older figure.
If Your Rent Is Above the LHA Rate
If there is a gap between your LHA entitlement and your actual rent, you can apply to your local council for a Discretionary Housing Payment to bridge it temporarily, particularly if you are at risk of losing your home. See our Discretionary Housing Payment guide and use our Benefit Entitlement Calculator to estimate your wider Universal Credit position.
FAQs
What is Local Housing Allowance?
Local Housing Allowance (LHA) is the maximum amount of help with private rent that Universal Credit or Housing Benefit will pay, set for each Broad Rental Market Area (BRMA) and each bedroom category. If your actual rent is higher than the LHA rate, you have to cover the shortfall yourself.
How is my bedroom entitlement worked out?
You are allowed one bedroom for each adult or couple, each additional adult over 16, each pair of children under 10 regardless of sex, each pair of children under 16 of the same sex, and any child who cannot share for a disability-related reason, up to a maximum of 4 bedrooms under LHA rules.
What is the shared accommodation rate?
Most single claimants under 35 with no dependents are restricted to the shared accommodation rate — the cost of a single room in a shared house — rather than a self-contained one-bedroom rate, regardless of what type of property they actually rent. Certain exemptions apply, including some care leavers, people who have been in a homeless hostel, and those receiving certain disability benefits.
How often are LHA rates reviewed?
LHA rates were frozen for several years before being uprated in April 2024 to the 30th percentile of local market rents, then frozen again. Rates do not automatically track rent inflation each year, so the gap between actual rents and LHA can widen between reviews — check the current rate for your area on gov.uk or your local council's website.
Does LHA apply to council or housing association tenants?
No. LHA rates only apply to private rented sector tenancies. Universal Credit and Housing Benefit for social housing (council and housing association tenants) is instead usually based on actual eligible rent charged, subject to the separate bedroom tax (Removal of the Spare Room Subsidy) rules for working-age claimants.
Can I get extra help if my rent is above the LHA rate?
Yes, potentially, through a Discretionary Housing Payment from your local council, which can top up the gap between your LHA and your actual rent for a temporary period, particularly if you are at risk of losing your home.
Is Local Housing Allowance the same as Housing Benefit?
Not exactly. LHA is the method used to cap the amount of rent support paid — it applies both to the housing element of Universal Credit and to Housing Benefit for private tenants. Housing Benefit itself is being phased out and replaced by Universal Credit for most working-age claimants, but the LHA cap works the same way under either benefit.
How do I find out the LHA rate for my area?
You can look up the current LHA rate for your Broad Rental Market Area and bedroom category on gov.uk or through your local council's website, which usually publishes a rates table. Universal Credit and Housing Benefit calculators, including our own Benefit Entitlement Calculator, also apply the correct local rate automatically once you enter your postcode and household details.
Does the shared accommodation rate still apply if I have children?
No. The under-35 shared accommodation rate restriction only applies to single claimants without dependent children. If you have a dependent child living with you, you are normally entitled to at least the one-bedroom self-contained rate rather than the shared rate, subject to your usual bedroom entitlement.
What happens to my LHA if I move to a different area?
Your LHA rate is tied to the Broad Rental Market Area you live in, so moving changes which rate applies to you — it can go up or down depending on local rents. You should report a change of address to the DWP or your council as soon as possible so your housing support is recalculated for the new BRMA and bedroom category.
Disclaimer: This guide is general information, not personal benefits advice. LHA rates vary by area and are updated periodically — check the current rate for your Broad Rental Market Area on gov.uk or with your local council before relying on it.
