LHA increase – BAP and S13 confusion?

LHA increase – BAP and S13 confusion?

9:25 AM, 1st February 2024, About 2 months ago 8

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Hello, I am trying to prepare in advance of 1st April when the new LHA rate is applied. According to S13, a rent increase has to happen on the same day the tenant moved in so for this example let’s say the 29th of the month.

So in this example, I issue the S13 on 28th Feb (giving the month’s notice) – new rent applicable from 29th March.

The tenant’s Universal Credit Benefit Assessment Period (BAP) period 16th March – 15th April. If the tenant then informs UC on the 29th March of the change as it happened/effective that day – then according to the ‘one month rule’ the change in circumstance is noted and therefore applied to this whole period.

But does that mean the new LHA rate is also applied to this period?

As the 1st of April falls part way through this BAP of 16th March – 15th April, does that mean that the full rate is or is not applied for the whole of this period? Does it only get applied in the following BAP period (16th April – 15 May) because that is the first full BAP period AFTER the date the LHA increased?

I am trying to determine if it is the change of circumstance declared within a BAP period that takes precedence here (and the new LHA rate therefore paid for the whole of that month) OR does the new rate only kick in once the LHA increase date itself has passed.

I need to give clarity to tenants as they will want to know if any top-ups are applicable and how much exactly.

Thanks,

Reluctant Landlord


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Comments

Cider Drinker

11:48 AM, 1st February 2024, About 2 months ago

The benefits are not your issue. These are between the claimant and the DWP/Local Authority.

Your concern is that the rent is paid. Let the tenants deal with their claim.

The Forever Tenant

12:14 PM, 1st February 2024, About 2 months ago

The DWP can be slow with updating the information they have.

The increase I had in October 2022 was not updated at all. The increase in October 2023 was only just updated last week.

The rent has always been over the LHA amount, so it didn't affect me in any way. I'm glad they sorted it out for April however.

Mick Roberts

14:00 PM, 1st February 2024, About 2 months ago

They will get paid the new rent AFTER the 1 April as long as their BAP is after 1 April. So anything that happens in their BAP will take effect on their next pay day.
So if BAP 3rd March to 2nd April, payment day 9th April, they will get new Housing Element amount on 9th April.
UC DWP don't care what u do. Same as when tenant leaves us, one day before payment day, new Landlord gets whole new rent for one days occupation.

UC also won't let tenant put new rent in (unlike HB who are human & would take it early), until after 1 April.
UC also won't apportion rent-DWP UC are very thick like that-In fact, the second thickest on the planet behind Selective Licensing.

In your case, tell tenant to put it on journal 1st or 2nd April, he she will be paid new rent on 22nd April. Welcome to UC world which is making many thousands homeless.

Reluctant Landlord

16:27 PM, 1st February 2024, About 2 months ago

Reply to the comment left by Cider Drinker at 01/02/2024 - 11:48not if the rent is paid to me directly it isn't!

Reluctant Landlord

17:05 PM, 1st February 2024, About 2 months ago

Reply to the comment left by Mick Roberts at 01/02/2024 - 14:00cheers Mick. Giving all the T's a heads up today as their rents will need to be increased so that they new LHA pays the lot.
I have been a good LL and the kept the rent literally just above the current LHA by £25 a month. (and therefore way bellow market rate)
As the new LHA new rate (£700) exceeds the current rent (£625) , I have to put up the rent to £700 to match the new LHA amount - or T 's will continue to pay £25 a month.
Problem is that I raised the rent for some to £625 middle of last year, so I cant increase the rent until then. It means that some tenants will have to keep paying the £25 a month top ups until I can legally increase the rent..while the same tenant in the same flat, next door gets the whole lot paid by the new LHA.

More fool me for not putting the rent up to market rate eh, but instead letting to tenants on the basis of what they could actually afford...

Mick Roberts

8:06 AM, 2nd February 2024, About 2 months ago

Reply to the comment left by Reluctant Landlord at 01/02/2024 - 17:05
Yes more fool many of us for not putting rent up to market rent over the years.
And now tenants will say Ooh u making money out of me, where is my help? Forgetting we've been helping & undercharging them for years.

And same again when Labour get in & tell us we only increasing rent by 3% a year, with no thought that we already starting from a low base of £300pm below market rent.

Reluctant Landlord

12:21 PM, 2nd February 2024, About 2 months ago

Reply to the comment left by Mick Roberts at 02/02/2024 - 08:06
which is why all my rents are going up now. Ahead of what may well prove to be hell on earth if Labour get in.....
Scotland Part 2 - coming to England soon....

Jim K

21:42 PM, 5th February 2024, About 2 months ago

Reply to the comment left by Mick Roberts at 02/02/2024 - 08:06I think 'rent controls as you state at 3% or so are a given. Best to at least start at a decent point.

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