The UK Government's Welfare Reform Act 2007 changed the current housing benefit system for private sector tenants from April 2008.
Housing benefit was replaced by the Local Housing Allowance which is:
- paid directly to tenants rather than landlords in the majority of cases; and
- paid at fixed rates depending on the area and the household size, instead of directly related to the property involved.
The Rent Registration Service sets Local Housing Allowance (LHA) levels in Scotland. Rent Officers determine Broad Rental Market Areas (BRMAs) and then set individual LHA rates for each type of property by collecting information about local rents.
Market evidence is used to determine local housing allowances.
For more information about Housing Benefit, visit the Department of Work and Pensions' website.