How LHA Works — Key Facts
- LHA is set at the 30th percentile of rents in each Broad Rental Market Area (BRMA)
- Maximum entitlement: 4 bedrooms regardless of household size
- Single claimants under 35: limited to shared accommodation rate
- LHA applies to private renters only — not social housing
- If your rent exceeds LHA you must cover the shortfall yourself
LHA Calculator
LHA rates shown are representative 2025/26 figures. Actual rates vary by precise BRMA and are set by the Valuation Office Agency. Check gov.uk for exact rates in your area.
Understanding Local Housing Allowance
Local Housing Allowance is the rate used to calculate how much help private renters can receive with their housing costs through Housing Benefit or Universal Credit. It is not paid directly as a benefit in all cases — instead the LHA rate sets a ceiling on how much of your rent can be supported.
LHA rates are set at the 30th percentile of market rents for each bedroom size in each Broad Rental Market Area. This means 30% of comparable properties in your area should theoretically be affordable at the LHA rate. If you rent at above this rate, you must cover the difference yourself.
Rates were frozen for several years but were increased from April 2024 in recognition of rising private rents. For 2025/26 the rates reflect the 30th percentile of rents recorded in 2023-24. In high-demand areas like London, the gap between LHA and market rents can still be significant.
Bedroom Entitlement Rules
The number of bedrooms you qualify for under LHA depends on the composition of your household. The rules are specific and differ from what you might consider a common-sense allocation.
| Household member | Bedroom entitlement |
|---|---|
| Adult couple | 1 bedroom (shared) |
| Single adult (16+) | 1 bedroom each |
| Children under 10 | 1 bedroom per 2 children (gender-neutral sharing) |
| Children 10-15, same gender | 1 bedroom per 2 children |
| Children 10-15, different genders | 1 bedroom each |
| Maximum LHA entitlement | 4 bedrooms |
Single claimants under 35 without children are generally limited to the shared accommodation rate — covering a room in a shared property rather than a self-contained flat. Exemptions exist for care leavers under 22, severely disabled people, former rough sleepers, and others in specific vulnerable categories.
LHA Rates by Area 2025/26
| Area | Shared/1 bed | 2 bed | 3 bed | 4 bed |
|---|---|---|---|---|
| Inner London | £1,450 | £1,800 | £2,200 | £2,700 |
| Outer London (typical) | £1,100 | £1,350 | £1,650 | £2,000 |
| Manchester | £650 | £800 | £950 | £1,150 |
| Birmingham | £600 | £750 | £900 | £1,100 |
| Leeds | £550 | £700 | £850 | £1,050 |
| Edinburgh | £700 | £900 | £1,100 | £1,400 |
| Glasgow | £500 | £650 | £800 | £950 |
| Bristol | £800 | £1,000 | £1,250 | £1,500 |
| Brighton | £900 | £1,100 | £1,350 | £1,650 |
| Oxford | £850 | £1,050 | £1,300 | £1,600 |
These are representative figures for guidance. Always check exact rates on gov.uk or with your local council.
Frequently Asked Questions
What is Local Housing Allowance?
LHA is the rate used to calculate housing support for private renters on Housing Benefit or Universal Credit. It is set at the 30th percentile of rents in each Broad Rental Market Area.
How is bedroom entitlement calculated?
Adults get one bedroom each (couples share one). Children under 10 share regardless of gender. Children 10-15 of the same gender share. Different-gender children 10-15 get separate rooms. Maximum is 4 bedrooms for LHA.
What is the shared accommodation rate?
Single claimants under 35 are generally entitled to only the shared accommodation rate, covering a room rather than a self-contained property. Exemptions apply for disabled people, care leavers, and other vulnerable groups.
Can LHA cover all my rent?
Only if your rent is at or below the LHA rate for your BRMA and bedroom entitlement. If your rent is higher, you must cover the difference. The LHA rate is capped at the 30th percentile, not the median rent.
Does LHA apply to social housing?
No. LHA is only for private renters. Social housing tenants have their housing benefit calculated differently, and the bedroom tax (under-occupancy charge) may reduce benefit for spare bedrooms.
What is a Broad Rental Market Area?
A BRMA is a geographical area defined by the Valuation Office Agency. LHA rates are set separately for each BRMA based on local private rental market data. Your postcode determines which BRMA you are in.
How often are LHA rates updated?
Rates are reviewed annually and typically uprated in April. For 2025/26, rates reflect the 30th percentile of rents recorded in the 2023-24 survey period.
What if my family needs more than 4 bedrooms?
LHA is capped at the 4-bedroom rate regardless of household size. A family needing 5 or more bedrooms still receives the 4-bedroom rate only.
Can I get LHA if I work?
Yes. Working does not automatically exclude you from LHA. Your earnings are taken into account in the means test for Housing Benefit or Universal Credit housing costs but do not simply disqualify you.
What is Discretionary Housing Payment?
DHP is a top-up payment local councils can make to help cover a rent shortfall above LHA. It is not a right and is awarded at the council's discretion, usually for short-term or exceptional circumstances.
Does having a lodger affect LHA?
Yes. A lodger may be counted as a non-dependant, which can reduce your LHA or Housing Benefit entitlement. Income from a lodger above certain thresholds may also affect your overall benefit amount.
Are foster carers entitled to an extra bedroom?
Approved foster carers may be entitled to one extra bedroom in their LHA calculation. This depends on local authority rules and individual assessment.