Local Housing Allowance Increase

ikcdab

I am a private landlord with a tenant who is on UC and claims LHA.
As LHA has been frozen for 4 years, I have not increased his rent. However, rising costs for me and the fact that LHA has now increased means that I must look at this again.
I do not want my tenant to lose out - he is a good tenant and I do not wish him to lose any of his money at all.
Currently his rent is £500 a month and he gets £450 LHA. So he has to add £50 a month from his basic UC.
I see that the LHA (in his category) for our area has now increased to £575 a month.
If I were to increase his rent to £575, would the LHA then automatically cover all of this? If so, he would be better off as he would no longer need to add the £50 a month from his basic UC.
Any comments please?

poppy12345

If he's entitled to the amount and it's the same as the rent then he will receive all of that rent.https://lha-direct.voa.gov.uk/

HillStreetBlues

ikcdab said:

 If so, he would be better off as he would no longer need to add the £50 a month from his basic UC.

Yes, he would be £50 better off as there wouldn't be a shortfall.

Bigwheels1111

I did this every year for my tenant, 2 adults and 2 children were entitled to a 2 bed.
Mine was a three bed.
They were good tenants, so after the first year I put the rent down, Just a touch over the 2 bed LHA rate.
Same as you, they needed to find about £50 a month out of their own money.
When they had a third child, the LHA rate was more than I would have charged for my 3 bed.
I don’t know if they kept any extra money from rent payments.
It’s hard to find and keep good tenants.
Glad I’m out of the renting game.

poppy12345

Bigwheels1111 said:

I did this every year for my tenant, 2 adults and 2 children were entitled to a 2 bed.
Mine was a three bed.
They were good tenants, so after the first year I put the rent down, Just a touch over the 2 bed LHA rate.
Same as you, they needed to find about £50 a month out of their own money.
When they had a third child, the LHA rate was more than I would have charged for my 3 bed.
I don’t know if they kept any extra money from rent payments.
It’s hard to find and keep good tenants.
Glad I’m out of the renting game.

No, they wouldn't have because you can't receive anymore than what your maximum rent is. 

Newcad

LHA is a 'Housing Costs Cap' on benefits paid towards private rents,

If the actual rent amount is less than the claimants applicable LHA rate then only the actual rent amount is paid as benefit towards rent.
There is no 'surplus' for the tenant to keep.

If the actual rent amount is more than the claimants applicable LHA rate then only the applicable LHA rate is paid as benefit toeards rent.
The tenant then has to top-up to the actual rent from elsewhere.