Local Housing Allowance Policy:

This has become a serious issue in recent times and many landlords are refusing to accept LHA claimants. The reasons for this are set out below together with our policy on this issue.

The government has determined that the LHA (formerly housing benefit) should be paid directly to the tenant as opposed to the landlord. This has resulted in a situation where the LHA is simply treated as part of the applicant's income rather than a reliable payment from local government. LHA claimants are therefore assessed for affordability in exactly the same way as working applicants. The calculation we use is that the rent should be no more than 40% of your total gross income per month. Accordingly, many people in receipt of LHA are now required to provide a guarantor before their applications may be considered on account of their affordability assessment failing. A guarantor must be able to prove affordability at the level previously mentioned.

As the government have ceased paying landlords directly we are unwilling to consider altering the rental payment dates of any tenancy on account of when the council pay LHA to the tenant. Our standard terms are monthly in advance and failure to pay in full and on time may result in tenancy being terminated.

Please note that, as yet, the government has not given the tenant the right to ask for payment to be sent directly to the landlord however, this may be considered in a small number of circumstances. For details, please contact your LHA officer.