LHA Implementation 2007 The Rent Service and Local Housing Allowance

LHA Implementation 2007 The role of The Rent Service in Local Housing Allowance: Setting the Broad Rental Market Area [BRMA] Collecting lettings information Setting the Local Housing Allowance [LHA]

LHA Implementation 2007 Local Housing Allowance Timescales The new system will be introduced for new claims from 7 April 2008 Every month, Local Housing Allowance rates for each property size will be published for each BRMA These figures will be generated automatically without rent officers making a valuation

LHA Implementation 2007 The Broad Rental Market Area Set by the rent officer The BRMA is the area used for the LHA determination under the new scheme How are these defined?

LHA Implementation 2007 BRMAs – defined in law Rent Officers (Housing Benefits Functions) Amendment Order 2007 These factors must be considered by the rent officer: Have regard to access and standards of Health, Education, Recreation, Banking and Shopping Distance of travel by public and private transport Residential premises of a variety of types and tenancies

LHA Implementation 2007 The BRMA The aim of the BRMA determination is to identify a geographical area in which it would be objectively reasonable for a tenant of the dwelling in question to consider alternative places to live. The BRMAs will be mapped on a Geographic Information System and published The BRMAs will be regularly reviewed

LHA Implementation 2007 The LHA figures Once the BRMA is set, the LHA figure for each category is calculated Standard categories include 1 to 5 bedrooms The LHA is based on the median figure from a list of rents

LHA Implementation 2007 So what is a Median LHA? The median rent is the figure halfway up the distribution of the list of rents in the BRMA. £ £ £ £ £ £ £210.00

LHA Implementation 2007 Lettings Research Teams How does the rent officer compile a list of rents? Teams of rent officers collecting lettings data and analysing the market. –Analysis of the lettings data held and the PRS –Targeted collection The aim is to ensure that our database reflects the volume and range of properties within the Private Rented Sector.

LHA Implementation 2007 Lettings Research Methods Analyse the data we already have Identify any gaps in our database Contact landlords for information about the local market We collect information from all available sources but are particularly interested in lettings for self managed properties

LHA Implementation 2007 How Can You Help? LHA levels are determined by the actual rental levels in each BRMA – in other words, the ‘market’ Landlords are the best source of lettings data The more lettings data we gather, the more robust and reflective the LHA figures are

LHA Implementation 2007 So what’s new? No Pre Tenancy Determinations LHA figures will be published so that people know the rates before signing a tenancy Median figure generated from 12 months of data using an automatic process Fixed rate of benefit

LHA Implementation 2007 So what’s new? Personal entitlement based on household size Claimant can choose smaller or larger accommodation according to price and ability to pay By definition it will be the lower half of the market that is affordable

LHA Implementation 2007 Information you provide will.... Be held securely and confidentially Ensure that the LHA reflects the market Give confidence to all our customers

LHA Implementation 2007 Contact Details Visit our website: us a completed lettings form: Call your local office to contact a lettings research rent officer Fax us your lettings details on the lettings form

LHA Implementation 2007 Further Information Your Local Authority The Rent Service ( DWP (

LHA Implementation 2007 The Rent Service and Local Housing Allowance