Local housing allowance (LHA) rates changes

The Government’s Valuation Office Agency (VOA) have now published an indicative table showing the impact of one of the proposed changes to local housing allowance. The Government have announced that instead of calculating LHA rates based on the median rent (the fiftieth percentile point) in a broad market rental area it will now be calculated on the basis of the thirtieth percentile point. To help landlords we have displayed this information in a table. Click here to view the table.

You should note that these figures are based on June 2010 LHA rates. These could well change before the new rules are implemented. It is also important to note that the first change will be the cap to LHA rates. If the cap applies then the capped amount is the maximum amount payable even if the recalculation based on the thirtieth percentile is higher. The Government have also announced that the maximum number of bedrooms which LHA will be payable is 4 and this is taken into account in the table.

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