Cardiff Estate and Letting Agents
Properties in Cardiff, Penarth and the Vale of Glamorgan

As of April 1, 2008, Local Housing Allowance (LHA) replaces the old Housing Benefit system. The new legislation simplifies the rules governing benefit claims and allows tenants more freedom, in terms of increased financial benefits to claimants and a wider choice of accommodation.

Under the legislation each local authority will be divided into Broad Rental Market Areas (BRMA), with rental officers setting individual LHA rates for each BRMA. The major difference between the two systems is that prospective tenants will now be able to shop around for their allowance. If tenants find a property they like, with a rent that exceeds their LHA, they will be required, as before, to make up the difference. However, if the claimant finds a property with a rent below their allowance, they will be able to keep the difference: up to a maximum amount of £15.00 per week.

Benefit payments will still take the form of a flat-rate allowance (based on the size of household and the area in which a person lives), usually paid directly to the tenant, who is then liable for the rent. Entitlement rules also remain the same, based on a person’s income and savings and proof of a valid tenancy.