LHA Rates from April 2024

Yamor

These have now been published.

https://www.gov.uk/government/statistics/local-housing-allowance-indicative-rates-for-2024-to-2025/indicative-local-housing-allowance-rates-for-2024-to-2025

Newcad

Note that they are 'indicative' at this stage so may change before being finalised.

"The data is indicative, confirmed rates will be released in accordance with legislation on 31 January 2024."

It's unlikely that they will change, but it is possible.

HillStreetBlues

How they calculate it is totally beyond me. I have checked a few times and there has never been a a property that is equal to even the new rate( or even close to it). Currently within 40 miles even the cheapest is £75 above a one bedroom rate.
Even the cheapest  HMO is above the new one bed rate.

Yamor

Which area are you in?

HillStreetBlues

I'm in Powys, If you search the whole of Powys on Rightmove  apart from one on Open Rent  that has no pictures,so discount it (that's still £350) on there are 42 properties in Powys, the cheapest are about £400pm  the new rate £325 (up from £295).

nannytone_2

The benefit cap isn't rising So even if the  Rise in Lha rates Was helpful, It won't make any difference to entitlement

poppy12345

nannytone_2 said:

The benefit cap isn't rising So even if the  Rise in Lha rates Was helpful, It won't make any difference to entitlement

Wow, i didn't realise that. Not that i'm affected but so many people are.

Yamor

HillStreetBlues said:

I'm in Powys, If you search the whole of Powys on Rightmove  apart from one on Open Rent  that has no pictures,so discount it (that's still £350) on there are 42 properties in Powys, the cheapest are about £400pm  the new rate £325 (up from £295).

Right. I thought perhaps you were in London and therefore affected by the overall cap applied to the LHA rates.

I suppose the main reason will be because the LHA rates are based on existing rents actually being paid, which will generally be significantly lower than advertised rents.

HillStreetBlues

Yamor said:

HillStreetBlues said:

I'm in Powys, If you search the whole of Powys on Rightmove  apart from one on Open Rent  that has no pictures,so discount it (that's still £350) on there are 42 properties in Powys, the cheapest are about £400pm  the new rate £325 (up from £295).

Right. I thought perhaps you were in London and therefore affected by the overall cap applied to the LHA rates.

I suppose the main reason will be because the LHA rates are based on existing rents actually being paid, which will generally be significantly lower than advertised rents.

AFAIK  it's not based on existing rents, it suppose to be based on current rental prices within the year. So new figures should show 2023 rents.

Yamor

When I say existing rents, I mean current rents paid by existing tenants (i.e., not simply the rents as advertised by letting agents when looking for new tenants). These will be significantly lower than advertised rents.

The VOA says:

The Valuation Office Agency (VOA) Rent Officers collect rental information from letting agents, landlords, tenants and other sources. LHA rates are based on private market rents being paid in the BRMA which can differ from advertised rents.

These data do not include all rents that might exist in each BRMA. In accordance with DWP legislation, Rent Officers are tasked with collecting a sufficient sample from the 12 month period ending 30 September prior to DWP publishing LHA rates on 1 April. These published data are the rents collected and comprises both new and renewal rents in payment, as negotiated between landlord and tenant. These rents do not include any value attributed to services which are ineligible for housing benefit (effectively net rents). Housing benefit supported rents are also removed where possible.

scottleag

It would be impossible to rent a property round here other than social housing on these rates. In my own case, based on the indicative figures, it's a £176.50 pcm shortfall. And that's now. It's likely to go up later this year.