Local Housing Allowance (LHA) Rates to Increase from 01 April 2024
Posted on February 28th, 2024
Local Housing Allowance (LHA) determines the maximum financial support available for renters in the private rented sector. The Secretary of State has committed to reviewing the level of LHA rates annually.
Each year Rent Officers at the Valuation Office Agency (VOA) determine LHA rates for the coming financial year.
On 22 November 2023 the Chancellor announced in the Autumn Statement that the government will raise LHA rates in Great Britain to the 30th percentile of local market rates in April 2024.
The Department for Work and Pensions (DWP) uses LHA rates to calculate the maximum housing support for claimants of either the housing element of Universal Credit or Housing Benefit. LHA rates are set within Broad Rental Market Areas (BRMA).
A BRMA is an area within which a person could reasonably be expected to live, taking into account access to certain facilities and services, for example with regards to health and education.
LANDLORDS WHO CHARGE LHA RATE RENT MAY WANT TO LOOK AT INCREASING THEIR RENT FROM 01 APRIL 2024 TO REFLECT THE INCREASE.