Local Housing Allowance

What is local housing allowance

Local Housing Allowance was introduced in April 2008 and became a new way of working out new claims for Housing Benefit for tenants renting accommodation from a private landlord. It also affects tenants already getting Housing Benefit who move into accommodation rented from a private landlord. Local Housing Allowance will not affect people living in council accommodation or other social housing. 


With Local Housing Allowance, benefit is not usually based on the property in which the tenant lives. It is based on:


  • who lives with the tenant
  • which area the property is in
  • how much money the tenant has coming in
  • what savings the tenant has


In some cases the amount of benefit will be affected by other things. These can include:


  • how much the rent is
  • whether anyone living with the tenant is expected to contribute to their rent


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