Local Housing Allowance (LHA) is the rate at which Housing Benefit — now mostly absorbed into Universal Credit — is paid to private renters on low incomes. It is one of the most significant factors shaping whether people experiencing homelessness can access the private rented sector — and its current levels create a fundamental barrier that prevents many people from accessing any affordable housing.
Understanding LHA — what it is, how it is calculated, and how the gap between LHA rates and actual rents has grown — is essential knowledge for anyone working in homelessness services. It explains a great deal about why move-on is so difficult, and why many people remain in temporary or supported accommodation far longer than intended.
This is a Developing-level module within Subject 7: Housing and Homelessness Systems.