Increase in Local Housing Allowance rates
Following a four year freeze, Local Housing Allowance (LHA) rates will increase on 1 April 2024. A table showing the new rates can be found here.
The LHA rate determines the amount that tenants in receipt of benefit can receive towards their housing costs. LHA rates are calculated based on the open market rates for different property sizes in each local authority area, with the rate being set at the 30th percentile of open market rates in that area. If a tenant’s rent is more than the LHA rate they are responsible for making the top up payment directly to their landlord.
Landlords wishing to do a rent increase should follow the guidance on rent increases set out in SAL’s factsheet here. Please note in particular that to increase the rent by more than 3%, in most cases landlords must wait until April to issue the 3 month rent increase notice.