Looking for a new flat in London, would renting from this organisation be covered under LHA?

holdorflod

I found an organisation, "LHA London": https://lhalondon.com/

They provide flats in various parts of London, all bills included.

In one of the properties they provide either:

• a single room with ensuite at £255.00 a week
• a studio with ensutie and kitchenette for £320.00 per week

The LHA rates for London as far as I'm aware are:

• £154.19 pw for a room in shared accomodation
• £295.49 pw for a 1 bed flat / studio

So what I'm wondering is, would the studio with ensuite and kitchenette be treated as a 1 bed or would it still be treated as shared?

I was browsing a council's site re: LHA (https://hackney.gov.uk/local-housing-allowance) and found this quote:


Shared accommodation rate

• live in one room and share some facilities with other people (for example, a kitchen or bathroom)
• are a joint tenant (not a partner)
• are under 35 and live alone*
  

*note*: I'm over 35 years old

As the studio would have it's own kitchen and ensuite, you would not need to use the shared kitchen. I'm not sure if this means it would be treated as a 1 bed.

Another thing I found on the council's site is the following:

LHA will not apply to you if:

• you have a tenancy where a large part of the rent covers board and attendance (such as hotel accommodation)

The organisation include all bills, there is a gym etc. would this be a problem?

Thanks

Spoonie_Turtle

First part: the LHA rate (local housing allowance) is the maximum they will pay based on which bedroom rate you're entitled to.  So if you are entitled to the 1bedroom rate and find shared accommodation, the maximum they will pay is still the 1bed rate.  It's a maximum set in case the actual rent (minus anything for bills or other service charges) is lower than the LHA rate but in reality that is very rare now.  Usually the LHA rate is lower than actual rent and leaves people needing to find the shortfall out of their limited income.

Second part: I'm not 100% sure where the accommodation you're looking at falls, in this respect; others will hopefully be able to help.  But I do know they only pay for rent, so with charges including bills and more than basic communal facilities, they would want a breakdown of how much of the cost is rent and how much is other charges ineligible for help.

If you're not already claiming benefits then you need to be aware that your income will affect how much help, if any, you could be entitled to.

holdorflod

Thanks, I should have mentioned that I'm already on Universal Credit and in employment. I've been given a month's notice at my current place so am trying to find somewhere else pretty soon.

>>>LHA rate (local housing allowance) is the maximum they will pay based on which bedroom rate you're entitled to.  So if you are entitled to the 1bedroom rate and find shared accommodation, the maximum they will pay is still the 1bed rate. 

So this means that since I'm over 35 years of age, I will always be entitled to the 1 bed rate even if it's just a room in shared accommodation? So say I find a room in a shared house for £295pw, that would be covered by the LHA?

Spoonie_Turtle

holdorflod said:

Thanks, I should have mentioned that I'm already on Universal Credit and in employment. I've been given a month's notice at my current place so am trying to find somewhere else pretty soon.

… 

So this means that since I'm over 35 years of age, I will always be entitled to the 1 bed rate even if it's just a room in shared accommodation? So say I find a room in a shared house for £295pw, that would be covered by the LHA?

Yes.  Regarding the amount, yes if it's all rent not including any excluded charges.  And it changes by area, so you'd have to double check the rates for the area of any property you're considering.


(I don't think I linked the document I mentioned in my previous comment, actually, sorry!
https://assets.publishing.service.gov.uk/media/6245b44a8fa8f5276eb82a03/admf2.pdf )

HillStreetBlues

holdorflod said:

Thanks, I should have mentioned that I'm already on Universal Credit and in employment. I've been given a month's notice at my current place so am trying to find somewhere else pretty soon.

>>>LHA rate (local housing allowance) is the maximum they will pay based on which bedroom rate you're entitled to.  So if you are entitled to the 1bedroom rate and find shared accommodation, the maximum they will pay is still the 1bed rate. 

So this means that since I'm over 35 years of age, I will always be entitled to the 1 bed rate even if it's just a room in shared accommodation? So say I find a room in a shared house for £295pw, that would be covered by the LHA?

If it's a AST you should be given 2 months notice, that would start on the anniversary of your contract.
Yes you are entitled to the one bed rate,  doesn't matter if it's shared accommodation,  you will get that rate up to the rent you pay.

Robbie64

I've stayed in London Hostels Association accomodation before so have experience of the set-up in their various hostels.

Most rooms are shared and offer only a bed and a wardrobe in a 2, 3, 4 (or more) bed shared room. Very basic (it's why they are cheap for London). In my time there (many years ago) all but one hostel had a dining room with cooked food served up each evening. Now it's self catering with shared kitchen facilities and bathrooms on each corridor (for the latter, as in my time). 

There are a limited amount of single rooms (there were no ensuite facilities in my time there) but again it's shared kitchen space. I doubt the hostels have many single rooms with en suite facilities and kitchenettes. You might be lucky to find one. Again in my day everyone started in a shared room and had to join a waiting list for a single room. This was back in the days when the hostels catered largely for civil servants (the Civil Service owned the hostels until 1984 then privatised them but still provided most residents for many years afterwards). These days the residents are largely students and young people travelling with also some being people who are working in the London area.

I expect you'd be looking at the vast majority of rooms being classed as shared accomodation though if you are 35+ and on UC then I think you would qualify for the one bedroom rate (not 100% sure about that).

All heating, lighting etc is provided as part of the weekly charge and aren't broken down by cost. You might find some deductions from ameneties are made from the UC you get for day to day living costs.

Also, without trying to put you off... when I lived in a LHA property (I actually stayed in two, one for 4 months and one for 9 months) it was largely occupied by young people. I was aged between 21 and 23. While there were older people there, those aged over 30 were very few and far between. I believe this is still the case and the website targets younger people. If it is a short term stay you are after then this probably wouldn't be a problem. But for somewhere longer term it might not be what you are looking for.

Newcad

Actually in a private rental service charges, etc. are irrelevant.*

The  LHA rate is the maximum that can be paid towards private housing costs and is paid regardless of what else the 'rent' may include in the way of service charges or even all-inclusive bills.
That's because it is already a CAP on how much benefit you can get towards housing costs, and as said will hardly ever be more that the actual 'rent' portion.
(If LHA rate ends up paying a little bit towards your bills the DWP/government will stand that for the miniscule number of cases where it does happen).

By contrast in a social rental (what used to be called council housing) service charges and bills have to be taken into consideration.
That's because the LHA cap doesn't apply to social rentals, benefits will pay the full rent whatever it is** - and so they have to make sure that those housing cost benefits are not also paying utility bills or other non-included charges.
(eg. A common non-included charge is water which many social tenants pay for as part of their 'rent'. But it's a utility charge/bill, so housing cost benefits will not pay for it).

*NOTE that UC (and Housing Benefit for those who can claim it) will ALWAYS ask about service charges and included bills - regardless of whether you live in a private or social rental.
That's simply because they have found that often claimants aren't sure which type it is that they are living in, so they always just gather the information about charges whether it's needed or not.

**Subject to the under-occupancy charge. (Which doesn't apply in private rentals because it's already accounted for by LHA bedroom entitlement instead).

holdorflod

Robbie64 said:

I've stayed in London Hostels Association accomodation before so have experience of the set-up in their various hostels.

Most rooms are shared and offer only a bed and a wardrobe in a 2, 3, 4 (or more) bed shared room. Very basic (it's why they are cheap for London). In my time there (many years ago) all but one hostel had a dining room with cooked food served up each evening. Now it's self catering with shared kitchen facilities and bathrooms on each corridor (for the latter, as in my time). 

There are a limited amount of single rooms (there were no ensuite facilities in my time there) but again it's shared kitchen space. I doubt the hostels have many single rooms with en suite facilities and kitchenettes. You might be lucky to find one. Again in my day everyone started in a shared room and had to join a waiting list for a single room. This was back in the days when the hostels catered largely for civil servants (the Civil Service owned the hostels until 1984 then privatised them but still provided most residents for many years afterwards). These days the residents are largely students and young people travelling with also some being people who are working in the London area.

I expect you'd be looking at the vast majority of rooms being classed as shared accomodation though if you are 35+ and on UC then I think you would qualify for the one bedroom rate (not 100% sure about that).

All heating, lighting etc is provided as part of the weekly charge and aren't broken down by cost. You might find some deductions from ameneties are made from the UC you get for day to day living costs.

Also, without trying to put you off... when I lived in a LHA property (I actually stayed in two, one for 4 months and one for 9 months) it was largely occupied by young people. I was aged between 21 and 23. While there were older people there, those aged over 30 were very few and far between. I believe this is still the case and the website targets younger people. If it is a short term stay you are after then this probably wouldn't be a problem. But for somewhere longer term it might not be what you are looking for.

Looks like you apply for the type of room you want (ensuite / studio) etc. I would only stay here if I didn't have to share many facilities.

On the plus side though, seems like it would be no hassle to secure, just pay and stay. No agency fees, background checks, references etc. Could be useful for somewhere to stay while having more time to look for a proper place. I've got long-covid right now and I've had to send my current flat-mate to do viewings for me due to breathing difficulties. Not really the best time for this for me unfortunately!

I sent their customer services an enquiry as to whether they give a tenancy agreement, as on their site they say "no contracts" as a selling point. However, I'd need something to show UC. I got this back as a response:

Thank you for your message.

We do not provide tenancy agreements as we offer flexible stays.

Guests' stay is based on a license-to-occupancy basis.

Reception is able to issue a proof of address only.
-------------

I'm not sure if that's going to be enough for UC... plus I guess they'd need a breakdown of how much goes towards rent vs bills, not sure if this org will be able to provide. I wouldn't be too fussed if UC just knock £250 a month off  ~£1250pm and just cover the £1000, I wonder if they'd do that without any breakdown of bills etc. Seems reasonable to me.

holdorflod

Newcad said:

Actually in a private rental service charges, etc. are irrelevant.*

The  LHA rate is the maximum that can be paid towards private housing costs and is paid regardless of what else the 'rent' may include in the way of service charges or even all-inclusive bills.
That's because it is already a CAP on how much benefit you can get towards housing costs, and as said will hardly ever be more that the actual 'rent' portion.
(If LHA rate ends up paying a little bit towards your bills the DWP/government will stand that for the miniscule number of cases where it does happen).

By contrast in a social rental (what used to be called council housing) service charges and bills have to be taken into consideration.
That's because the LHA cap doesn't apply to social rentals, benefits will pay the full rent whatever it is** - and so they have to make sure that those housing cost benefits are not also paying utility bills or other non-included charges.
(eg. A common non-included charge is water which many social tenants pay for as part of their 'rent'. But it's a utility charge/bill, so housing cost benefits will not pay for it).

*NOTE that UC (and Housing Benefit for those who can claim it) will ALWAYS ask about service charges and included bills - regardless of whether you live in a private or social rental.
That's simply because they have found that often claimants aren't sure which type it is that they are living in, so they always just gather the information about charges whether it's needed or not.

**Subject to the under-occupancy charge. (Which doesn't apply in private rentals because it's already accounted for by LHA bedroom entitlement instead).

Are you saying that on UC, rent which is inclusive of all bills would be covered up to the maximum allowance?

I've read some reports of people getting deductions for bills when it's been included in their rent.

Newcad

Again that depends in if its a Social rental (Housing Assiciation or Council) or a Private rental (private landlord, or possibly private rental from a Housing Assiciation).

If it's  a Social housing rental then it is not subject to LHA rates - and so 'included' bills will be deducted from what is paid as UC Housing Element to make sure that UC-HE is not paying your utility bills.

If it's a Private rental then it is subject to the LHA cap - and you can only be paid UC-HE up to the LHA cap - so for 99.9999% of private rental claims any included bills won't be covered anyway. (The basic rent won't even be covered in most private rentals).

poppy12345

holdorflod said:

Newcad said:

Actually in a private rental service charges, etc. are irrelevant.*

The  LHA rate is the maximum that can be paid towards private housing costs and is paid regardless of what else the 'rent' may include in the way of service charges or even all-inclusive bills.
That's because it is already a CAP on how much benefit you can get towards housing costs, and as said will hardly ever be more that the actual 'rent' portion.
(If LHA rate ends up paying a little bit towards your bills the DWP/government will stand that for the miniscule number of cases where it does happen).

By contrast in a social rental (what used to be called council housing) service charges and bills have to be taken into consideration.
That's because the LHA cap doesn't apply to social rentals, benefits will pay the full rent whatever it is** - and so they have to make sure that those housing cost benefits are not also paying utility bills or other non-included charges.
(eg. A common non-included charge is water which many social tenants pay for as part of their 'rent'. But it's a utility charge/bill, so housing cost benefits will not pay for it).

*NOTE that UC (and Housing Benefit for those who can claim it) will ALWAYS ask about service charges and included bills - regardless of whether you live in a private or social rental.
That's simply because they have found that often claimants aren't sure which type it is that they are living in, so they always just gather the information about charges whether it's needed or not.

**Subject to the under-occupancy charge. (Which doesn't apply in private rentals because it's already accounted for by LHA bedroom entitlement instead).

Are you saying that on UC, rent which is inclusive of all bills would be covered up to the maximum allowance?

I've read some reports of people getting deductions for bills when it's been included in their rent.

You can't claim for help with your bills, even if the rent is including all bills. They will deduct the amount for the bills.