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The Rent Service and Local Housing Allowance

The Rent Service and Local Housing Allowance. The role of The Rent Service in Local Housing Allowance:. Setting the Broad Rental Market Area [BRMA] Collecting lettings information Setting the Local Housing Allowance [LHA]. Local Housing Allowance Timescales.

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The Rent Service and Local Housing Allowance

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  1. The Rent Service and Local Housing Allowance LHA Implementation 2007

  2. The role of The Rent Service in Local Housing Allowance: • Setting the Broad Rental Market Area [BRMA] • Collecting lettings information • Setting the Local Housing Allowance [LHA] LHA Implementation 2007

  3. Local Housing Allowance Timescales • The new system will be introduced for new claims from 7 April 2008 • Every month, Local Housing Allowance rates for each property size will be published for each BRMA • These figures will be generated automatically without rent officers making a valuation LHA Implementation 2007

  4. The Broad Rental Market Area • Set by the rent officer • The BRMA is the area used for the LHA determination under the new scheme • How are these defined? LHA Implementation 2007

  5. BRMAs – defined in lawRent Officers (Housing Benefits Functions) Amendment Order 2007 These factors must be considered by the rent officer: • Have regard to access and standards of Health, Education, Recreation, Banking and Shopping • Distance of travel by public and private transport • Residential premises of a variety of types and tenancies LHA Implementation 2007

  6. The BRMA • The aim of the BRMA determination is to identify a geographical area in which it would be objectively reasonable for a tenant of the dwelling in question to consider alternative places to live. • The BRMAs will be mapped on a Geographic Information System and published • The BRMAs will be regularly reviewed LHA Implementation 2007

  7. The LHA figures • Once the BRMA is set, the LHA figure for each category is calculated • Standard categories include 1 to 5 bedrooms • The LHA is based on the median figure from a list of rents LHA Implementation 2007

  8. The median rent is the figure halfway up the distribution of the list of rents in the BRMA. £175.00 £185.00 £185.00 £190.00 £195.00 £195.00 £200.00 £200.00 £200.00 £200.00 £205.00 £205.00 £210.00 So what is a Median LHA? LHA Implementation 2007

  9. Lettings Research Teams • How does the rent officer compile a list of rents? • Teams of rent officers collecting lettings data and analysing the market. • Analysis of the lettings data held and the PRS • Targeted collection • The aim is to ensure that our database reflects the volume and range of properties within the Private Rented Sector. LHA Implementation 2007

  10. Lettings Research Methods • Analyse the data we already have • Identify any gaps in our database • Contact landlords for information about the local market • We collect information from all available sources but are particularly interested in lettings for self managed properties LHA Implementation 2007

  11. How Can You Help? • LHA levels are determined by the actual rental levels in each BRMA – in other words, the ‘market’ • Landlords are the best source of lettings data • The more lettings data we gather, the more robust and reflective the LHA figures are LHA Implementation 2007

  12. So what’s new? • No Pre Tenancy Determinations • LHA figures will be published so that people know the rates before signing a tenancy • Median figure generated from 12 months of data using an automatic process • Fixed rate of benefit LHA Implementation 2007

  13. So what’s new? • Personal entitlement based on household size • Claimant can choose smaller or larger accommodation according to price and ability to pay • By definition it will be the lower half of the market that is affordable LHA Implementation 2007

  14. Information you provide will.... • Be held securely and confidentially • Ensure that the LHA reflects the market • Give confidence to all our customers LHA Implementation 2007

  15. Contact Details • Visit our website:www.therentservice.gov.uk • E-mail us a completed lettings form: lettingsresearch@therentservice.gov.uk • Call your local office to contact a lettings research rent officer • Fax us your lettings details on the lettings form LHA Implementation 2007

  16. Further Information • Your Local Authority • The Rent Service (www.therentservice.gov.uk) • DWP (www.dwp.gov.uk/welfarereform/legislation) LHA Implementation 2007

  17. The Rent Service and Local Housing Allowance LHA Implementation 2007

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