Local Housing Allowance (LHA) covers housing costs for private renters on Universal Credit or Housing Benefit. Rates are set at the 30th percentile of local rents in each Broad Rental Market Area (BRMA) and updated annually in April.
How LHA rates are set
- Rates set by the Valuation Office Agency at the 30th percentile of local rents per BRMA
- Rates vary by BRMA and bedroom entitlement -- singles under 35 typically get only the Shared Accommodation Rate
- In many areas LHA does not cover median market rents -- check the shortfall before agreeing a tenancy
- Current rates published on GOV.UK -- update in April each year
Universal Credit direct payments
- UC housing costs are paid to the claimant by default, not the landlord
- Direct payment (Alternative Payment Arrangement) available with tenant consent, in 2+ months' arrears, or on vulnerability grounds
- Register on the GOV.UK UC Landlord Portal to request APAs and check payment status
- APAs stop if the tenant's UC is sanctioned -- monitor regularly
RRA 2025 -- blanket DSS refusals are a civil penalty offence
- From 1 May 2026, blanket refusals on benefit status attract penalties up to £7,000 (first) or £40,000 (repeat)
- Advertising 'No DSS' or 'working professionals only' constitutes a blanket refusal
- Landlords can still assess affordability individually -- total income (LHA + other) assessed against rent
- Buy-to-let mortgage covenants restricting DSS tenants should be reviewed -- many lenders have updated policies