Local Housing Allowance Rates Explained

Local Housing Allowance rates are set annually by the Valuation Office Agency (VOA) for each Broad Rental Market Area (BRMA) in England. There are around 150 BRMAs covering different local areas. The LHA rate for each bedroom category is set at the 30th percentile of local rents — meaning 30% of rents in the area are at or below the LHA rate, and 70% are above it.

In practice, this means that in most areas the LHA rate is below the median rent, and in high-cost areas it may be significantly below what private landlords charge. Rates are uprated each April, though historically they have been frozen for extended periods, widening the gap between benefit entitlement and market rents.

You can check the current LHA rates for your area using the VOA's online tool. Search for "LHA rates" on the GOV.UK website and select your local BRMA and bedroom category.

Your LHA rate is determined by the number of bedrooms you are entitled to under the LHA rules, based on your household composition:

• Shared accommodation rate: Single people aged under 35 (with some exceptions)
• One bedroom: Single people aged 35 or over; couples without children
• Two bedrooms: Couple or lone parent with one child; lone parent with a child who stays overnight regularly
• Three bedrooms: Couple or lone parent with two or three children
• Four bedrooms: Households with four or more children

Exceptions to the under-35 shared accommodation rule include: those who have spent three months or more in care since age 16; ex-offenders under supervision; and people who have a severe disability. Even if you rent a two-bedroom flat by yourself, you will only receive the rate for the bedroom size you are entitled to.

If your LHA rate is lower than your actual rent, you have several options to help bridge the gap:

• Discretionary Housing Payment (DHP): Apply to your local council. DHPs are one-off or short-term top-up payments to help with housing costs, awarded at the council's discretion. They are commonly used to cover the LHA shortfall for disabled people who need a specific size or type of property.
• Negotiate your rent: In some cases, if you tell your landlord you cannot afford the shortfall, they may be willing to reduce the rent to the LHA rate — particularly if the alternative is a void period.
• Budgeting: If you use your LHA to pay towards a higher rent, ensure you budget carefully. Falling into arrears of more than eight weeks can trigger direct payment of housing benefit to the landlord and may lead to eviction proceedings.

If you are struggling to find accommodation at the LHA rate in your area, Shelter's website includes a LHA calculator and advice on finding affordable housing.

The Shared Accommodation Rate (SAR) is a particularly important feature of the LHA system for younger private renters. Under current rules, single people aged under 35 are entitled only to the SAR — which is based on the cost of renting a single room in shared accommodation — regardless of whether they are actually renting a self-contained property.

In practice, this means a 28-year-old renting a studio flat will receive housing benefit or the UC housing element based on the SAR, which is substantially lower than the one-bedroom LHA rate. In high-cost areas the difference can be hundreds of pounds per month, creating serious affordability problems for young single renters.

However, the SAR does not apply to everyone under 35. Exemptions include:

• People who have spent three months or more as a looked-after child (in care) since the age of 16
• Ex-offenders who are subject to Multi-Agency Public Protection Arrangements (MAPPA) and for whom a self-contained property is required on risk grounds
• People with a severe disability — specifically those in receipt of the middle or higher rate care component of Disability Living Allowance, the daily living component of Personal Independence Payment, or Armed Forces Independence Payment
• People who were previously homeless and are placed in self-contained accommodation by the council or a housing association
• People who have lived in a hostel for homeless people for at least three months and are moving to self-contained accommodation through a resettlement programme

If you believe you qualify for an exemption from the SAR, notify your council or your DWP Universal Credit case manager in writing and provide evidence of the relevant circumstance. If you are currently subject to the SAR and believe it should not apply, you can request a mandatory reconsideration of the decision. Citizens Advice and welfare rights organisations can assist you in making this case effectively.