The amount of LHA awarded depends on:
the number of bedrooms deemed to be required by the claimant, and
the region in which they live (called the Broad Rental Market Area) which determines the market level of rents within this area.
the percentile chosen by LHA rules as applicable - currently this is set at the 30th percentile.[6] meaning the rate is set amongst the lower rental rates for a wide region that includes many towns. If the tenant lives in a town with a higher than average rent, the lower 30th percentile rent for the region as a whole is still applied.
Bedroom Requirement
Local Housing Allowance will be calculated on the number of rooms the claimant's household needs not the number of rooms in the property or the amount of rent charged.
The number of bedrooms needed is based on the number, age and sex of people who live in the claimant's household. The bedroom requirement is calculated as follows:
one bedroom for the claimant and partner (over 16 - including same sex couples)
one bedroom for other person aged 16 or over
one bedroom for any two children of the same sex aged under 16
one bedroom for any two children regardless of sex who are less than ten years old
one bedroom for any other child
If the claimant is single and aged under 35, the category of property considered appropriate is a bedroom in shared accommodation. This means a property in which the claimant has the exclusive use of one bedroom, but shares one or more of a kitchen, a bathroom, a toilet or a room suitable for living in.
The maximum LHA rate covers a four bedroom property.