Local Housing Allowance – Rights and Responsibilities
What is Local Housing Allowance?

Local Housing Allowance (LHA) is a new way of working out Housing Benefit for tenants in private rented accommodation. It is based on:
•what area you live in
• who lives with you
• what money you have coming in
• what savings you have

Local Housing Allowance gives you more choice

You will be able to choose the quality and price of your accommodation and shop around with your LHA. It is up to you how much of your LHA you want to spend on renting a property.
If you are looking for somewhere to rent you can choose to:
• pay more than the LHA to rent a more expensive property;
• rent a property where the rent is lower than the LHA and you can use the rest of your LHA for other things; or
• look for somewhere suitable where the rent is the same as the LHA.
If you already renting and do not need or do not wish to move you will be in a better position to negotiate with your landlord on:
• future rent increases; and
• any improvements to the property.
LHA is usually paid to you and not to your landlord. You are responsible for paying your rent to your landlord. If your LHA is more than your rent, you can keep the difference. Any extra money you get will not be taken into account for benefit purposes.

Local Housing Allowance is fairer

Tenants with similar circumstances living in the same area will get the same amount of LHA. LHA is based on the area you live in and how many people live with you and not the amount of rent that you pay.
To check LHA rates for the area you want to live in see the local council.
If the number of people living in your household changes the amount of LHA you get may change.

Local Housing Allowance is clearer

If you move within the same area you will usually get the same amount of LHA.
By knowing how much LHA you are entitled to before you look for a new place to live, it is easier for you to decide what type of property you can afford.
To check the LHA rates for the area you want to live in, see the local council. Rates for the Isle of Wight will be advertised on www.iwight.com or contact the Housing Benefit office on 01983-823950

Paying your rent

LHA is usually paid directly to you. You are then responsible for paying the rent to your landlord.
You must agree with your landlord about how and when you will pay your rent. Being responsible for paying your rent to your landlord gives you greater opportunity to negotiate with your landlord about how much rent you pay.
We can pay your benefit straight into your bank account. If you do not already have one, you may want to set up a bank account. If you have a bank account there are a number of ways you can pay the rent to your landlord. You can:
• set up a standing order or a direct debit
• pay by cheque if you have a chequebook; or
• pay your landlord with cash that you have withdrawn from the bank.
You should talk to your landlord about how he or she would prefer you to pay the rent.
You can get advice about opening and using a bank account from any bank or building society. We have a list of local banks and building societies in our area. You can telephone 01983 823950 for more information. You can also get advice from organisations such as Citizens Advice.

What happens if you don’t pay your rent?

If you do not pay your rent, your landlord can ask the courts to evict you from your home.
Eviction means that:
• you will lose your home
• you may to have difficulty finding new accommodation, as your landlord is unlikely to give you a reference
• you will still have to pay the landlord the money you owe and possibly extra money to cover any court costs
• an application for rehousing could be affected as you may be considered to have made yourself intentionally homeless

Can my landlord increase my rent?

Your landlord can increase your rent at any time as long as you agree to the increase. If you do not agree with the increase you should get advice from a Solicitor, Law Centre, Citizens Advice or Local Authority Housing Advice Centre.
Your landlord must give you 28 days notice in writing that he or she is going to increase your rent.
Your landlord cannot increase the rent without your agreement if the rent has been increased in the last 52 weeks.
You can get advice from:
The Citizen's Advice Bureau Exchange House St Cross Newport PO30 5BZ. Telephone No : 01983 521885
Or look at our website
www.iwight.com
You can also get information from:
www.odpm.gov.uk/stellent/groups/odpm_housing/documents/divisionhomepage/036727.hcsp
You can also get advice if you are unhappy about the condition of your property or you are having difficulties with your landlord.
Even if your landlord increases your rent you may only get the same amount of Local Housing Allowance.

What if I have problems paying my rent to the landlord?

In special cases we may be able to pay your rent to your landlord. If you are worried about managing your money, or have had problems in the past, let us know and we can help.

What if my circumstances change?

If you move to a new address or other circumstances change, you need to tell us straight away.

Where can I get more information?

For more information or advice about Local Housing Allowance telephone our Local Housing Allowance Team on 01983 823950 or visit: Revenues & Benefits, Council Offices, Broadway, Sandown, PO369EA
Citizens’s Advice Bureau
Tel: 0845 120 2959
Web: http://www.citizensadvice.org.uk/

The Law Centre
Tel: 01983 524715

Frontline Advice Centre
Tel: 01983 291552
Email: [email protected]
Web: http://www.frontlinedebtadvice.org.uk/

Bankruptcy-Insolvency.co.uk - debt advice service
Tel: 0800 074 6918
Email: [email protected]
Web: http://www.bankruptcy-insolvency.co.uk/

National Debtline
Tel: 0808 808 4000
Web: http://www.nationaldebtline.co.uk/


Consumer Counselling Service
Tel: 0800 138 1111
Email: [email protected]
Web: http://www.cccs.co.uk/



Page last updated on: 06/02/2012