LHA Increase to trigger rent increase?

LHA Increase to trigger rent increase?

13:00 PM, 22nd April 2020, About 2 years ago 35

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I note that the LHA rates have been increased from 1st April 2020 – March 2021. A couple of questions…

1. Anyone know if this is ONLY a temporary measure only till March 2021, what happens after this? Will it stay at the same level going forward, or is this increase only because of Covid-19 and therefore after March 2021 there will be a reduction to another (lower) rate?

2. Are any landlords now upping their rents in light of this LHA increase going forward?

I appreciate the delicacy of the current situation, but I think its a valid question!

Many thanks

Reluctant Landlord



Comments

by SimonF

13:18 PM, 20th October 2020, About A year ago

Reply to the comment left by WP at 20/10/2020 - 13:14
I am guessing that this tenant is affected by the benefit cap so may be losing part of his increased personal allowance due to the increase in personal allowance due to Covid. As discussed previously as far as LHA rates are concerned a studio has the same rate as a 1 bed however this may not be the view of the tribunal.

by DSR

13:27 PM, 20th October 2020, About A year ago

Reply to the comment left by SimonF at 20/10/2020 - 13:18
aaahhh I see. As far as I am aware (I am sure I saw it somewhere) that if the bedsit/studio has full private facilities then it will be classed for LHA purposes as a one bed flat and it will be paid on that basis. I think the crux is if LL's know it is only a studio then they could charge less, so more appealing for tenants where they have a cap. There is nothing to say you can't charge the LHA rate for this classification though.

by DSR

13:28 PM, 20th October 2020, About A year ago

Reply to the comment left by SimonF at 20/10/2020 - 13:18
...and like you say if UC have already been paying it then its fine???

by Prakash Tanna

14:15 PM, 20th October 2020, About A year ago

Hi. Is the issue here not where the increase in rent is fair and proportionate? You mentioned you have not increased the rent for quiet some time so the question would be be what % did you increase it earlier this year and is it reasonable, without tenant consent?

by Bill irvine

19:14 PM, 20th October 2020, About A year ago

Reply to the comment left by SimonF at 20/10/2020 - 12:57
Hi Simon

Your tenant is challenging the new rental charge, presumably on the basis, it's been pitched too high. If that's the case, you need to explain to the tribunal how you reached your determination and convince it, the charge is reasonable in all the circumstances.

Normally you'd do so by comparing your charge with rents for similar studio properties or suitable alternatives in the same area. I'd be wary about relying on the LHA rate for a 1 bedroom property, even though the figure is assessed by the Rent Officer on the lower 3/10ths of rental charges for similar 1 bed properties in the BRMA.

Bill


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