The goal for us at Finefair Ltd is providing clients with stand out services. At the same time, we want to give them as much information as possible. Our areas of expertise include management, lettings, guaranteed rent, and others. We are also happy to advise about local housing allowance in Lewisham and other parts of London. If this is what you want to know about, keep on reading.
Where did LHA come from?
Local Housing Allowance (LHA) originated in 2008. It’s a way for councils to calculate the Housing Benefit Entitlement for those in the private sector. It applies to tenants in England and Wales as well as Scotland.
The move to LHA was interesting to say the least. In the past, housing entitlement was in line with the 50th percentile or median value of private rental accommodation in the community. Following the change, it was based on the 30th percentile.
One of the best things about this allowance is that those eligible for help can claim appropriate amounts for where they live. The amount will mirror the price other individuals receive to keep it fair. So, entitlement represents similar properties with the same quantity of bedrooms.
Local Housing Allowance in Lewisham
Lewisham has specific information about Housing Benefit and LHA that is important to take note of. We are going to go over some of these facts to get you started.
The amount of weekly LHA people will receive depends on their savings and income. If they gain job seeker’s allowance or income support, the benefit will be based on the maximum LHA. The local authority could also make a deduction from it for any other adults living in the property. Housing benefit awards for those tenants of private sector landlords get based on LHA.
The three steps
There are three steps necessary to use to figure out the total LHA. Firstly is determining the area. Rates differ depending on the rents people are paying locally.
The second step is figuring out how many rooms. There will be one bedroom available for each single adult or couple. Also, there will be one extra bedroom for any two children under age 10 and any two kids of the same sex under age 16. It’s the same for any other child and any other adult aged 16 or over.
The maximum payable for new claims would be the four bedroom rate. However, single claimants beneath the age of 35 are typically only entitled to the shared accommodation rate.
The final step is to look at income and savings. People won’t be able to make a claim if their income is high enough to be able to cover the rent and other bills. They also can’t get LHA if they have sufficient savings.
Exemptions
Certain exemptions for local housing allowance in Lewisham do exist too. Some claims won’t be part of it. They include registered social landlord tenancies. Also included here are protected cases like supported housing supplied by voluntary organisations, charities, social landlords, and certain local authorities.
Another exemption is those tenancies with existing rent restrictions and exceptional cases. Said cases include hostels, houseboats, and caravans.
Finally, there are cases where the rent officer judges that a considerable portion of the rent can be because of maintenance and board. Exempt cases will have their benefits figured out using separate housing benefit rules.
Let Finefair Ltd help you
We understand that there is a lot to consider with housing. This can make things difficult for anyone, including tenants, landlords, and investors. However, plenty of information exists that can help you find out about local housing allowance in Lewisham. Current rates for areas are available here.
In addition, feel free to get in touch with us anytime if you’d like to know more about any of our services. We excel at guaranteed rent and more, so you can get the best support.
