Unlocking Opportunities: LHA Rates Set to rise in April 2024

?Attention, private landlords! Local Housing Allowance (LHA) rates are set to increase from April 2024, potentially improving the landscape for millions of renters and impacting your rental business.

Since its freeze in 2020, the Local Housing Allowance has dictated the maximum amount tenants renting from private landlords can claim in Housing Benefit or Universal Credit. This means that the upcoming rate increase could significantly impact your rental income.

From April onwards, these rates will be on the rise, ensuring that tenants can cover a greater portion of their rental costs with their benefit payments. Specifically, the adjustments will reflect the cheapest 30% of local market rents in the year leading up to September 2023. This translates to potential full coverage of rental costs for tenants residing in properties within the lowest 30% of the market in their area.

It's crucial to note that these rates vary based on accommodation size, ranging from shared to four-bedroom properties, and are contingent on the region and household size. Consequently, the precise amount tenants can claim will fluctuate depending on their location.

The method of calculation ensures that some areas will experience more substantial increases in payments than others. For instance, tenants in a three-bedroom property might witness their housing allowance skyrocket by £350.01 per month, amounting to an impressive £4,200.12 increase annually.

As a private landlord, staying informed about these changes is vital for understanding how they may affect your rental business and income streams. Prepare to navigate the evolving landscape of rental housing with this significant adjustment in Local Housing Allowance rates.

You can find out how much Local Housing Allowance tenants in your area could be entitled to using the Government's Local Housing Allowance rates calculator on the Valuation Office Agency's (VOA) website here.

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