Local Housing Allowance
(LHA)
Local Housing Allowance is the basis for calculating Housing Benefit or Universal Credit housing costs for private renters. The rate is set at the 30th percentile of local rents in each Broad Rental Market Area and depends on the number of bedrooms the claimant is entitled to based on their household size. LHA rates are reviewed annually and have been frozen in many areas, creating a growing gap between benefit levels and actual rents.