How are Local Housing Allowance payments worked out?
Each local authority will be divided into Broad Rental Market Areas (BRMA). The Rent Service will set individual Local Housing Allowance (LHA) rates for up to 5 rooms in each of the BRMA areas. Walsall Council will have 2 BRMAs depending on what area the customer resides in. These figures will be published by the local authority so that landlords and prospective LHA customers can find out the amount of rent that the LHA will cover. See the Local Housing Allowance Rates for Walsall. If a customer finds a property that they like with a rent that exceeds their LHA they will need, as they do now, to make up the difference themselves. But if a customer finds somewhere with a rent below their allowance, they will be able to keep the difference up to a maximum of £15 a week. The amount of LHA is dependant on the following factors: • the number of rooms the customers needs • the area that he or she lives in • their income and savings • whether someone lives with them who is not a dependant The
