New formula for calculating local rent levels

New formula for calculating local rent levels

New Local Housing Allowance rules

Local Housing Allowance rates are set at the 30% rent level for the local Broad Rental Market Area after April 2011. This means that about 3 in 10 properties for rent in the area should be affordable to people on Housing Benefit.

Old Local Housing Allowance rules (pre-April 2011 claimants)

Local Housing Allowance rates are set at the median (50%) rent level for the local Broad Rental Market Area until April 2011. This means that about 5 in 10 properties for rent in the area should be affordable to people on Housing Benefit.

Date of Change

From April 2011 all new Housing Benefit claims by private sector tenants will be calculated under the new rules.

If you are already getting Housing Benefit you will not normally be affected until nine months after the anniversary date of your claim (the date you first made your current claim). For instance, if your Housing Benefit claim started on 1st May 2009 then your claim will be re-calculated from 1st February 2012 (your anniversary date is 1st May but a further nine months is allowed before the rule change affects you). However, if after 1st April 2011 someone stops living with you, or if you move house, then the new rules will take effect immediately. If there is an increase in your bedroom entitlement after 1st April 2011, for instance because someone comes to live with you, then, if your Local Housing Allowance under the old rules is higher than the new amount, your entitlement will be calculated under the old rules for the first nine months after which the new rules will take effect.
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