Local Housing allowance

Oldernotwiser

lil_me wrote: »

What as in the old fashioned sh*t goes to sh*t while the rich get richer?

I didn't really mean it like this although I know that it could be taken that way. I was thinking more that if you were paying your own rent and were badly off, you'd choose a cheaper area to live in, wouldn't you? Even if it meant moving away from family and friends. I don't think that people should be better off, just because they're on benefits, for whatever reason.

I think a vital point that you're missing is that many people don't pay the advertised rental rates when taking on a property, they negotiate around 10% lower, so your comparisons are unfair. Also, where I used to live, on the Isle of Wight, the LHA amount is quite a bit more than local rentals. Have you taken into account that the LHA rate is 4 weekly and most rental rates are calender monthly? That can make quite a difference.

Chrysalis

oldernotwiser the problem is the areas might be quite a distance, eg. opposite side of city.

Also some areas are actually dangerous to live in due to racist tensions etc.

Of course disabled people etc. likely need to be in proximity to shops etc. so have less choice.

LHA shouldnt assume you can negotiate it is supposed to be based on 'market rates'.

robpw2

seven-day-weekend wrote: »

AFAIK, people on Housing Benefit do not get all their rent paid if the house has more rooms than deemed necessary (and a corresponding rent). So I don't think a pensioner in a large house (unless it's a Council house) would get all their rent paid.

This new Benefit (LHA) appears to me to give people more choice, although it is still based on the number of rooms, because if a tenant can find a place that is less than the LHA for that size of property,they can keep the change.

Don't know if it works like that in practise.

upto a maximum of £15
thought lha in our area is 145 1 room rate but because im on a joint tenancy and our house only has one kitchen
they only pay the 0 room rate or shared house figure of 55.30

the benefits officer at council told me i would be better off under old system or i should move out of my property , find a 1 bed flat on my own and i would get the full amount

robpw2

oh yeah im 26 so the older than 25 gets 1 room rate is wrong

Oldernotwiser

Chrysalis wrote: »

LHA shouldnt assume you can negotiate it is supposed to be based on 'market rates'.

Surely the market rate is the amount actually paid, rather than the amount asked? Why shouldn't people on LHA negotiate - as they get to keep the difference between the LHA and the rent actually paid, it's very much to their advantage to do so.

robpw2

:beer:

Oldernotwiser wrote: »

Surely the market rate is the amount actually paid, rather than the amount asked? Why shouldn't people on LHA negotiate - as they get to keep the difference between the LHA and the rent actually paid, it's very much to their advantage to do so.

they only get to keep the difference up to a maximum of £15.00

Oldernotwiser

robpw2 wrote: »

:beer:
they only get to keep the difference up to a maximum of £15.00

You're absolutely right but £15, when on a low income, is worth having.

Chrysalis

I negotiate as I am sure others do Oldernotwiser, in my case I failed, I expect others fail to. This is why the market rates should be used. An assumption cannot be made that by default negotation yeilds a discount. So my point is still valid and that is that (a) the areas are too large for rent valuations, and (b) in my area the LHA rate is lower than the lowest rent I find on the rightmove website, will check local paper this week to see if cheaper in there as I remain very curious and concerned now. LHA certianly doesnt offer more choice from what I can see, it appears it will force people to congregate in certian areas. Of course I did predict a year ago LHA was a way for them to reduce housing benefit payouts via confusion.

Chrysalis

Oldernotwiser wrote: »

You're absolutely right but £15, when on a low income, is worth having.

indeed, but likewise the shortfall is also a noticeable hit, judging by what I am reading in this thread the majority are probably having a shortfall.

robpw2

yes i get a shortfall