Local Housing Allowance landlords FAQs (Frequently Asked
Questions)
- What is Local Housing Allowance (LHA)?
- Who
is not affected by LHA?
- What about single people under 25 years?
- Why are you removing a landlord's right to
receive payment of housing benefit?
- What safeguard exists for landlords?
- How can I be sure that the council will put
these safeguards into effect?
- Isn't it likely that tenants may spend their
housing benefit on other things?
- How will you equip tenants to manage their own
affairs?
- Landlords may be reluctant to take housing
benefit tenants. What will you do about the resulting
homelessness?
- Isn't it unreasonable to expect landlords to
collect the rent every week or month?
- If I receive direct payments under LHA, how
long will they go on for?
- How will the council know that my tenant has
rent arrears of 8 weeks or more?
- What appeal rights do I have against a payment
decision?
- How will the rent officer decide on the
amounts for various sized properties?
- Will I still need to make sure my tenant gets
a pre tenancy determination?
- Will I still get letters telling me my
tenant's benefit has changed?
- Where can I get more information about
LHA?
1. What is Local Housing Allowance (LHA)?
It is a new way of working out housing benefit. The rent is
based on the number of bedrooms the occupants are allowed depending
on who lives there. The allowances are one bedroom each for:
- Every adult couple
- Any other adult aged 16 or over
- Any 2 children of the same sex
- Any 2 children regardless of sex under age 10
- Any other child.
return to
top
2. Who is not affected by LHA?
- Tenancies with registered social landlords (housing
associations).
- Protected cases, such as supported housing.
- Social landlords, charities and voluntary organisations.
- Tenancies which are excluded from current rent
restrictions.
- Tenancies in caravans, houseboats and hostels.
- Tenancies where a substantial part of the rent is for board and
attendance, such as hotel accommodation.
return to
top
3. What about single people under 25?
These claimants will be entitled to the standard rate for a room
in shared accommodation – this will however, be based on a more
generous definition than the existing single room rent.
return to
top
4. Why are you removing a landlord's right to receive
payment of housing benefit?
There has never actually been a right in legislation for a
landlord to receive housing benefit payments direct (unless a
tenant has rent arrears of 8 weeks or more). There is a right for
tenants to request this arrangement and it is the right that is
being replaced. LHA will encourage tenants to take greater
responsibility for managing their financial affairs and should
equip people of working age with the skills they need when they
move into work.
We will continue to provide landlords with information about
claims as long as we have authorisation from the tenant to do
so.
return to
top
5. What safeguards exist for landlords?
There are a range of safeguards to protect the interests of
tenants and landlords. For example, where the claimant is 8 weeks
or more in arrears with their rent, we can make the first payment
payable to the landlord. Payments can be made to the landlord where
the claimant is deemed by the council to be 'vulnerable' (this
means they are unable to manage their affairs or it is unlikely
they will pay their rent.
return to
top
6. How can I be
sure that the council will put these safeguards into
effect?
Guidance will be provided by the Department for Work and
Pensions and we will be working closely with landlords, advice
agencies, other council departments and the medical profession to
make sure the necessary safeguards are implemented.
return to
top
7.Isn't it likely that tenants may spend their housing
benefit on other things?
Many tenants in the private rented sector already receive their
housing benefit themselves and regularly pay their rent on time.
Where a tenant is moving from direct payments we will be making it
clear to them what their responsibilities are and of the potential
consequences of falling into rent arrears. There will be examples
of some tenants misusing their housing benefit and where this
becomes a habit we will make provision for the landlords to be paid
direct provided we are satisfied that we have the necessary
evidence to justify our decision.
return to
top
8. How will you equip tenants to manage their own
affairs?
A person's ability or willingness to manage their own affairs
will vary. Our One Stop Shop advisers and the Citizens Advice
Bureau will ensure that good money management advice is available
to those who need it.
return to
top
9. Landlords may be reluctant to take housing benefit
tenants. What will you do about the resulting
homelessness?
LHA has merits for both landlords and claimants and we hope that
landlords will give the reforms a chance to work rather than decide
not to let property to people on housing benefit. The reforms are
intented to create a more transparent system that will be simple
for people to understand and for the council to administer.
The safeguards regarding direct payments will strike the right
balance between protecting the interess of both landlord and
tenant. We do not see any need for landlords to feel vulnerable
from letting to housing benefit tenants or for them to cease
letting to housing benefit tenants.
return to
top
10. Isn't it unreasonable to expect landlords to collect
the rent every week or month?
In most cases we hope that landlords will not have to physically
collect the rent. We want to encourage tenants to receive their LHA
into a bank account and set up a direct debit or standing order
arrangements to pay their rent in the same way as some other
tenants.
return to
top
11. If I receive direct payments under LHA, how long
will they go on for?
Where the tenant is considered 'vulnerable' and there is no
prospect of the situation changing, landlords can expect to receive
direct payments indefinitely. In cases where the vulnerability may
be temporary or direct payments are being made because the claimant
has more than 8 weeks rent arrears or did not pay the rent
regularly, then we will encourage the claimant to seek money
advice. The intention is that the claimant will be in a better
position in the future to manage their own finances and you may no
longer receive LHA payments direct.
return to
top
12. How will the council know that my tenant has rent
arrears of 8 weeks or more?
It will be up to you, the landlord, to tell us if they know that
a claimant is having problems paying their rent (it is advisable to
let us know before the arrears reach 8 weeks). It should be noted
that we may not pay LHA direct to the landlord in every case where
there are 8 weeks of arrears or more (for example, we may not pay
the landlord direct if the claimant is witholding rent payments
because of a dispute over repairs or maintenance).
return to
top
13. What appeal rights do I have against a payment
decision?
Appeal rights will not change as a result of the new scheme. You
will not be able to appeal against the LHA rates set for the area
or the council's decision to pay the tenant.
return to
top
14. How will the rent officer decide on the amounts for
various sized properties?
The rent service will identify broad market rental areas and as
now, will gather evidence regarding rental levels in those areas.
Knowsley will be treated as having three broad market rental areas
and will therefore have three sets of LHA figures for Knowsley
claimants, depending on the area where they live. View areas and
rates.
return to
top
15. Will I still need to make sure my tenant gets a pre
tenancy determination?
No, these will no longer be issued. The details of the LHA
amounts will be widely publicised each month in the local press,
One Stop Shops and on the website so it will be clear to all
landlords and tenants what the amount of LHA will be. This is the
maximum amount which can be paid but it is still a means tested
benefit so your tenant may get less.
return to
top
16. Will I still get letters telling me my tenant's
benefit has changed?
No.
return to
top
17. Where can I get more information about
LHA?
The Department for Work and Pensions website has information and
we will keep you informed through quarterly newsletters and
forums.
return to
top