Move to Single Broad Rental Market Area (BRMA)

In preparation for the new national Local Housing Allowance Scheme, the Rent Officer has proposed that we go to a single Broad Rental Market Area (BRMA) covering the whole of Argyll & Bute with effect from 1st January 2008. The rates for this can be found under LHA rates. He considered that for nearly all sizes of properties and for most parts of Argyll and Bute, the new unified rates are more generous than the rates published for the 5 existing BRMAs.

IMPORTANT CHANGES FROM 7/4/08

The Local Housing Allowance Scheme is being introduced nationwide on 7th April 2008. A number of changes are being made to Local Housing Allowance when it is introduced nationally. The main changes are:

• Local Housing Allowance rates will be based on the number of bedrooms a family needs, not bedrooms and living rooms. This is to reflect the way property for rent is advertised.


• The way the Rent Service works out the Local Housing Allowance rates will change. The calculation of the Local Housing Allowance rates will be based on a wider range of local rents than they are at the moment.

• If the local Housing Allowance rate that applies to a tenant is more than their rent, the maximum amount of benefit they can get is their rent plus £15. This is to ensure that Local Housing Allowance does not become a disincentive for people moving into work
• LHA (new scheme) will be applied to new claims and changes of address

WHAT DO THESE CHANGES MEAN?

To ease the move to the New Local Housing Allowance rates, existing tenants whose benefit was calculated using the Local Housing Allowance rates will have their current level of benefit protected for up to a year, unless their circumstances change. This will mean they will:

• Get more benefit under the new scheme if the local housing allowance rate has increased


• Be no worse off than before and will get a protected amount of benefit if the Local Housing Allowance rate has decreased


• Not be affected by the CAP on the amount of benefit they can get if it is more than their rent until 7th April 2009, unless their circumstances change.

Anyone who makes a claim for Housing Benefit on or after 7th April 2008 will have their benefit entitlement calculated under the new rules. Anyone who is getting benefit on 7th April 2008 and has a break in their claim on or after this date will lose any protection they have. They will have their benefit entitlement calculated under the new rules