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What is Local Housing Allowance?

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In short: Local Housing Allowance is the maximum rent the state will use when working out Housing Benefit or the Universal Credit housing element for a private tenant. It is set by Broad Rental Market Area and bedroom need, not by the rent on your tenancy agreement. Look up your rate on LHA Direct.

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Reviewed by Kaiser Khan

LHA is a cap, not a payment you apply for. If your rent is higher, you pay the difference unless your council awards extra help (a Housing Payment in England from April 2026, or a Discretionary Housing Payment in Wales and often in Scotland).

Single people under 35 are usually limited to the shared-accommodation rate. Social housing tenants are not on LHA but can still lose money under spare-room rules. Official rates: lha-direct.voa.gov.uk

Full cluster: Housing Benefit, LHA and extra housing payments.

Primary source: gov.uk/guidance/local-housing-allowance

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