January 2017 – Increase in Local Housing Allowance
New regulations have been issued to provide for a 3 per cent increase in local housing allowance (LHA) rates in designated areas where there are high rent increases.
In force from 23 January 2017, the Rent Officers Order 2016 makes provision for a 3 per cent uplift in LHA rates in designated broad market rental areas across England, Wales and Scotland.
The explanatory memorandum to the new regulations states:
The Government recognises that freezing LHA rates may have very different effects across the country, as rents in some areas might increase at different rates. In view of this, the Government committed to make provision for high rent areas, and will use 30 per cent of the savings from the LHA freeze, to create Targeted Affordability Funding. This funding will be used to increase some LHA rates by 3 per cent in those areas where there are high rental increases. Any increases to the designated rates, however, will not be able to exceed the maximum LHA levels.
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