New formula for calculating local rent levels
Local Housing Allowance rules
Local Housing Allowance rates are set at the 30% rent level for the local Broad Rental Market Area. This means that about 3 in 10 properties for rent in the area should be affordable to people on Housing Benefit or the Housing Costs element of Universal Credit.
Old Local Housing Allowance rules (pre-April 2011 claimants)
Local Housing Allowance rates were previously set at the median (50%) rent level for the local Broad Rental Market Area before April 2011. This meant that about 5 in 10 properties for rent in the area were affordable to people on Housing Benefit.