Rent and the Local Housing Allowance rates

Rent and the local housing allowance rates

We guarantee the rent at the Local Housing Allowance (LHA) rate to landlords on the scheme. The purpose of this is to ensure we provide affordable housing to customers we are trying to help. 

The rent cannot be topped-up by the tenant or council and is a fixed rate set by the government.

*Note that the  LHA rate is capped at the 4 bed rate, so any property larger than this will only receive this amount.

4 week rent bonus

The scheme also rewards landlords with a one-off annual bonus worth 4 weeks' rent upon the completion of a 12 month tenancy. 

For example, a 2 bed with a LHA rate of £132.33 a week with the 4-week bonus, would give you a total of £142.51 a week for that year.

How rent is paid

The rent is paid by the tenant via Universal Credit or Housing Benefit. The tenant can arrange for the rent to go directly from Universal Credit/Housing Benefit to the landlord each month. 

The rent is paid in arrears, meaning a landlord will receive the rent the month after a tenant signs the AST. For example, if a tenant moved in on 12 August 2021, the first rent payment would be paid on 12 September 2021. If the tenant is employed, or does not receive full benefits, they pay the remainder of rent to the landlord each month via bank transfer.

Unpaid rent

If the tenant fails to pay their rent or accrues arrears, the council helps the tenant to apply for a Discretionary Housing Payment (DHP) to help make the payment. If approved, the DHP is paid directly to the landlord to clear any rent arrears.

If further rent arrears occur after a DHP has been awarded or if the DHP is unsuccessful, the council guarantees the rent to the landlord. This is paid via bank transfer.

Rent guarantee for the length of the scheme

The scheme runs for 12-24 months per property, which means the rent guarantee is in place for this length of time. At the end of the contract with the council, we would hope that the landlord and tenant have built a good relationship so the tenancy continues on. However this is a decision that is made with the landlord and tenant. A landlord cannot replace the tenant with the aim of securing another 12-24 months of guaranteed rent. After this period, the council no longer guarantees the rent.

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