How are LHA levels calculated?
The Valuation Office Agency uses areas known as Broad Rental Market Areas (BRMA) to set the level of LHA. Each LHA is the midpoint of the range of rents for all types of property with that number of rooms in the BRMA. A BRMA area will cover a number of neighbourhoods. In this broad area there will be a mix of property types and other places to live within a reasonable travelling distance of similar public amenities. The Valuation Office Agency continually monitors the local rental market and collects details about properties available to rent and the rents that have been agreed for properties let recently. This information comes from different sources including letting agents, landlords and tenants, and a range of advertisements.
