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Local Housing Allowance

If you are a private tenant renting property or room from a private landlord and you are on a low income, you may be able to claim Housing Benefit and receive it under the Local Housing Allowance rules. Find out more, including how it's paid."

What is Local Housing Allowance

If you are renting a property or room from a private landlord, the Local Housing Allowance rules are used to work out how much Housing Benefit you get.

If you have been getting Housing Benefit since before 7 April 2008 the Local Housing Allowance rules will only apply to you if you:

  • change address
  • have a break in your claim

Under the Local Housing Allowance rules, your Housing Benefit is worked out according to where you live and who lives with you. Local Housing Allowance rates are set for different types of accommodation in each area. The rates range from a single room in a shared house up to properties with five bedrooms.

How is Local Housing Allowance calculated

Local Housing Allowance rates are calculated each month for individual areas, known as Broad Market Rental Areas.

The Local Housing Allowance rate for each property size is based on the 30th percentile of rental figures for the area. This means that almost one third of the rental properties of that size in the area will be affordable if you claim Housing Benefit under the Local Housing Allowance rules.

Where the rates are published

Local Housing Allowance rates are published at the end of each month for the following month. For example, the April rates will be made available at the end of March. You can check these locally on the NIHE website.

This will tell you how much help with your rent you might get before you find somewhere to live, making it easier for you to decide what property you can afford.

How much will you get

Your Housing Benefit will be based on the Local Housing Allowance Rate that applies to you. If your rent is higher than the Local Housing Allowance rate you will need to pay the difference from other sources of income or look for alternative accommodation.

Important changes to Local Housing Allowance from 1st January 2012

Housing Benefit is changing from 1st January 2012 for single people aged 25 to 34 who rent from a private landlord.

From that date, single people aged from 25 to 34 will only be entitled to the Housing Benefit shared accommodation rate. By single people we mean someone who is not living:

  • as a couple
  • with dependent children.

The shared accommodation rate is based on the level of local rents for properties that are not self contained. This usually means that there is a shared kitchen, bathroom, toilet or living room .

If you already get Housing Benefit at the one bedroom rate, your Housing Benefit may go down if you move to the shared accommodation rate.

If your Housing Benefit is paid directly to your landlord, the amount your landlord gets for your rent could go down.

If you are getting, or thinking of claiming Housing Benefit, you need to consider this change before you renew or make a new tenancy agreement with a private landlord.

Who will the changes affect?

These changes will affect you if you:

  • rent accommodation from a private landlord
  • already get Housing Benefit, or are going to make a new claim
  • are single
  • do not normally have children living with you
  • are under 35 years old
  • live in a self contained property

These changes will not affect you if you:

  • rent from the Housing Executive or a housing association.
  • are aged under 22 and have been in care.
  • live in supported housing provided by a housing association, registered charity, voluntary organisation or Health Trust
  • get the severe disability premium in your benefit because you are entitled to the middle or higher rate care component of the Disability Living Allowance.
  • need an extra bedroom for a carer who provides you with the overnight care you need but who doesn’t normally live with you.
  • have spent at least three months in a homeless hostel or hostel specialising in rehabilitating and resettling within the community. To benefit from this exemption you need to have been offered and accepted support services to enable you to be rehabilitated or resettled in the community.
  • are managed under active multi-agency management under the Public Protection Arrangements for Northern Ireland.

When will the changes affect me?

If you are already getting Housing Benefit and it appears to us that you would be affected by the change, you will receive a letter from us providing you with details of the date on which your claim will be affected. If you have an existing claim and fall into the affected group described above and do not receive a letter by 9th December 2011, please contact your local HB Service Centre in person or by phoning 03448 920 902

If you live in a privately rented home and make a new claim for Housing Benefit from 1 January 2012, the change will affect you straight away.

Additional financial assistance

If you are affected by the changes, depending on where you live, your award of Housing Benefit may be between £20 and £40 per week less than what would have been payable before the change is introduced. You may be entitled to some additional financial assistance to meet this shortfall through a Discretionary Housing Payment. Such payments however cannot be guaranteed in all cases and any award may not cover the full shortfall. Awards are made for a limited period only and are designed to provide you with some time to come to alternative arrangements with your landlord or to find cheaper accommodation.

Shared accommodation rates

You can find out your local shared accommodation rate on this website.

You can also compare the shared accommodation rate with the one bedroom rate. You should note that these rates are those that apply at present and are subject to regular review and updating.

More information

For more information, please contact your local HB Service Centre in person or by phoning 03448 920 902. Advice on Housing Benefit is also available from Citizens Advice Bureau, the Housing Rights Service and Advice NI.

How it's paid

The payment will normally be made to you or your landlord’s bank or building society account (if you have one) or by cheque.

If you do not already have a bank or building society account, you may want to set one up. That way you can arrange to pay the rent to your landlord automatically, using a standing order.

You can get advice about opening and running a bank account from any bank or building society. You can also get advice from your local advice centre.

It is up to you to pay the rent to your landlord. If you don't pay rent, you may be taken to court and evicted form the property.

If you are worried about managing your money, ask the Northern Ireland Housing Executive if it can help you. In some cases it will pay your benefit to your landlord.

You can get advice about opening and running a bank account from any bank or building society. You can also get advice from organisations like Citizens Advice. There is also advice on bank accounts available.

How to claim

You can claim the Local Housing Allowance rate of Housing Benefit as soon as you have a rent agreement with your landlord. Contact the Northern Ireland Housing Executive as early as possible to discuss your claim. If you delay you could lose benefit.

What to do if your circumstances change

If you are getting Housing Benefit and you move to a new address or other circumstances change, you should tell the Northern Ireland Housing Executive straight away. You may need to make a new claim for Housing Benefit.

Claiming Income Support, Jobseeker's Allowance or Employment and Support Allowance

If you claim Income Support, Jobseeker's Allowance or Employment and Support Allowance you will get forms to claim LHA with your claim pack. Complete and return the form with your Income Support or Jobseeker's Allowance claim form. If you do not claim Income Support or Jobseeker's Allowance, you can get forms to claim LHA from the Northern Ireland Housing Executive.

To get the LHA claim form from the Northern Ireland Housing Executive, follow the link below.

More useful links