Changes to LHA - did they happen?

Svenena

Did these changes take place?

http://www.direct.gov.uk/en/Nl1/Newsroom/DG_192415

According to my local council, the LHA rates are still around double those limits:

http://www.cambridge.gov.uk/ccm/content/benefits-and-council-tax/housing-benefit/local-housing-allowance/rates.en

If the changes are taking place at some point, how are people supposed to afford it? A quick search of rightmove and 3 local lettings agencies hasn't even bought up a room in a shared house for less than £330 per month, which is considerably over the limit the government was talking about.

Svenena

Anyone? According to Directgov the changes were coming into effect in April, but it doesn't look like they did?

JenJen70

As far as I know the changes did come into effect though the limits are still fairly generous. A cap of £340 per WEEK for a 3 bedroom property, or £1473 per month, is surely enough to cover the rent on a standard 3 bed property wherever you are in the country, even in London I should think - or am I being naive?!

JenJen70

I'm confused!! The cap on properties in Cambridge for a 3 bed is £150p/w so nowhere near the maximum of £340p/w stated on the Direct Gov website.

Ulfar

Didn't the overall limit come in from April and the 30th Percentile (this is worked out by area, so different limits will apply) comes in from October.

Given that you have quoted £330.00 for a house share and the new limit is £310.18, that is less than £5.00 a week you would have to pay yourself.

Checking on Globrix there are properties available to rent in Cambridge at the levels of the new LHA, they may not be in the nicest areas but then housing benefits are a safety net and not there to allow people to rent properties in the top end of the market.

These changes are no surprise and have been very widely discussed both in the media and forums such as this one. The intention from the government is to put downward pressure on rental prices rather than benefits setting the going rate.

RAS

JenJen70 wrote: »

As far as I know the changes did come into effect though the limits are still fairly generous. A cap of £340 per WEEK for a 3 bedroom property, or £1473 per month, is surely enough to cover the rent on a standard 3 bed property wherever you are in the country, even in London I should think - or am I being naive?!

In London, you are being naive, £1200 for a one room flat is not unusual and £750 for a house share.

Ulfar

London is a special case but it is also the prime reason the changes are being implemented.

Landlords will have no option but to alter there expectations of housing benefit clients or tenants will have to live further out. After all if you aren't working then is there really a need for you to be living at the centre of London.

ukcarper

http://www.direct.gov.uk/en/Diol1/DoItOnline/DG_196239 here is a useful link.