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Local Housing Allowance

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Author Topic: Local Housing Allowance  (Read 165 times)
Newbie
Posts: 3

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« on: August 06, 2020, 05:13:25 PM »

Hi

I am new to this forum.

I shall be grateful if someone can help me with the following:

My tenant is on Universal Credit and is entitled to money towards her rent.

My tenant gets the full LHA and tops up the difference in rent. I had informed my tenant in May of this year that i will be increasing her rent in September when her tenancy is due for renewal, by whatever the new housing allowance was and her top up would be the same as what she is paying.

The LHA up to April was 1081 per month and she topped up the difference for her rent.

My tenant has not had a rent increase for 3 years and is paying approximately 200.00 less per month for similar properties in the area. Furthermore, In January of this year i had the whole place freshly painted, had new kitchen and bathroom lino laid and had new carpets fitted, therefore,I felt a rent increase is justified and well overdue. My tenant was fine with this as she herself knows she is getting a good deal on the rent foe the area.

The new LHA from April is 1247.00 for the area.

My question is,will my tenant get the new April LHA rate from UC as she tops up her rent from April of this year, or would she have to "apply" for it?

My tenant is claiming that she is not getting the new LHA allowance for her rent, which is a bit odd, however, anything is possible with UC.

Can UC refuse to pay the new LHA rate when her tenancy is renewed in September?


Regards
Radhika

Any information or advise would be much appreciated as UC will not give me any information because of data protection.

Regards

Radhika

Sr. Member
Posts: 395

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« Reply #1 on: August 10, 2020, 10:29:44 AM »

The claimant get whatever the rent is (that DWP is aware of) up to the LHA whichever is lower. Then there's the benefit cap to consider.
Newbie
Posts: 30

I like property

« Reply #2 on: August 17, 2020, 04:53:21 PM »

Once you have put the rent, only then can the tenant contact the council and tell them her rent has gone up.
My only concern as a landlord is if your tenant can't afford the rent increase for whatever reason are you willing to lose a tenant. If your tenant is otherwise a good tenant its worth keeping them. Better the devil you know.

Its irrelevant what repairs or decorating you have done since its your legal duty to maintain the property.

I think it would be better for both of you to see what happens with the payments  and come to some sort of compromise with your tenant. You want your rent money, but you don't want a struggling un-happy tenant either.
Newbie
Posts: 6

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« Reply #3 on: August 23, 2020, 02:19:03 AM »

I am on UC and whenever my landlord increases my rent I notify UC of the change of circumstances and they give me the LHA I am entitled to.
Newbie
Posts: 3

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« Reply #4 on: August 26, 2020, 05:18:45 PM »

Thank you all for your replies and advise.

My tenant understands that the rent increase is to match the increase in the Local Housing Allowance for the area and her top ups will remain the same as the previous rent, therefore, She is no worse off.

She informed me yesterday that she has informed UC of the rent increase and has sent a copy of the tenancy agreement with the new rent as requested by her work coach.

Danmagnamius, I take your point about the rent increase. I am only increasing the rent by the increase in the Local Housing Allowance for the area and her top up will remain the same as the previous rent, which she has always paid as it is a very affordable amount. If the LHA had not gone up for the area, then i would not have increased the rent, as she has been my tenant for 9 years and could not have afforded the increase. However, if for any reason there is a problem, then i will not increase the rent and continue to charge the tenant the "old" rent, as like you said, i don't want a strugglng unhappy tenant.

Bermudj, thank you for your post, i am assuming the same will apply to my tenant and the benefit cap does not apply to her.

I will give an update as her new rent is due on the 13th of September 2020.

Once again, many thanks for your advise/help.

Regards

Radhika

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