The Rent Service and Local Housing Allowance LHA Implementation - - PowerPoint PPT Presentation

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

• fficer:
• 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.

• £175.00
• £185.00
• £185.00
• £190.00
• £195.00
• £195.00
• £200.00
• £200.00
• £200.00
• £200.00
• £205.00
• £205.00
• £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: www.therentservice.gov.uk
• E-mail us a completed lettings form:

lettingsresearch@therentservice.gov.uk

• 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

(www.therentservice.gov.uk)

• DWP

(www.dwp.gov.uk/welfarereform/legislation)

LHA Implementation 2007

The Rent Service and Local Housing Allowance