How we calculate LHA rates

Updated: 21 May 2018
In 2018/19 more than half of the Local Housing Allowance (LHA) rates will remain at the 2015 LHA rate, or the 30th percentile of local market rents, whichever is the lowest value. No LHA rates have been reduced and nineteen will increase by 3% from 1st April 2018.
The Government has provided limited additional funding to increase LHA rates in those areas where the shortfall between the 2015 LHA rate and the 30th percentile 2018 was greatest. This funding has been used to increase nineteen LHA rates as indicated below. More information is available on these methods of calculation below.
The tables below indicate which method was applied to calculate each LHA rate.

BRMA 1 South

Number of bedrooms 2015 LHA rate 30th percentile rate for 2018 2018 LHA rate Method of calculation
Single Room £45.80 £50.99 £45.80 Frozen at 2015 rate
1-Bed £60.68 £74.03 £62.50 Increased by 3%
2-Bed £80.43 £87.77 £82.84 Increased by 3%
3-Bed £88.44 £96.44 £91.09 Increased by 3%
4-Bed £99.58 £112.73 £102.57 Increased by 3%

BRMA 2 North

Number of bedrooms 2015 LHA rate 30th Percentile rate for 2018 2018 LHA rate Method of calculation
Single room £38.19 £38.67 £38.19 Frozen at 2015 rate
1-Bed £69.45 £75.00 £69.45 Frozen at 2015 rate
2-Bed £83.32 £89.18 £83.32 Frozen at 2015 rate
3-Bed £89.42 £96.34 £92.10 Increased by 3%
4-Bed £97.66 £105.13 £100.59 Increased by 3%

BRMA 3 Lough Neagh Lower

Number of bedrooms 2015 LHA rate 30th percentile rate for 2018 2018 LHA rate Method of calculation
Single room £43.63 £55.80 £44.94 Increased by 3%
1-Bed £66.94 £72.06 £66.94 Frozen at 2015 rate
2-Bed £77.92 £85.54 £80.26 Increased by 3%
3-Bed £89.43 £99.86 £92.11 Increased by 3%
4-Bed £106.83 £117.72 £110.03 Increased by 3%

BRMA 4 North West

Number of bedrooms 2015 LHA rate 30th percentile rate for 2018 2018 LHA rate Method of calculation
Single Room £50.52 £65.76 £52.04 Increased by 3%
1-Bed £74.31 £83.60 £76.54 Increased by 3%
2-Bed £89.53 £98.48 £92.22 Increased by 3%
3-Bed £99.60 £102.87 £99.60 Frozen at 2015 rate
4-Bed £108.13 £110.09 £108.13 Frozen at 2015 rate

BRMA 5 South West

Number of bedrooms 2015 LHA rate 30th percentile rate for 2018 2018 LHA rate Method of calculation
Single room £45.70 £46.01 £45.70 Frozen at 2015 rate
1-Bed £60.69 £61.53 £60.69 Frozen at 2015 rate
2-Bed £76.07 £82.15 £76.07 Frozen at 2015 rate
3-Bed £87.10 £91.12 £87.10 Frozen at 2015 rate
4-Bed £96.79 £97.43 £96.79 Frozen at 2015 rate

BRMA 6 South East

Number of bedrooms 2015 LHA rate 30th percentile rate for 2018 2018 LHA rate Method of calculation
Single room £52.09 £56.00 £52.09 Frozen at 2015 rate
1-Bed £78.97 £81.47 £78.97 Frozen at 2015 rate
2-Bed £93.09 £98.96 £93.09 Frozen at 2015 rate
3-Bed £102.92 £111.58 £106.01 Increased by 3%
4-Bed £120.93 £136.77 £124.56 Increased by 3%

BRMA 7 Lough Neagh Upper

Number of bedrooms 2015 LHA rate 30th percentile rate for 2018 2018 LHA rate Method of calculation
Single room £48.45 £53.19 £48.45 Frozen at 2015 rate
1-Bed £69.85 £75.83 £69.85 Frozen at 2015 rate
2-Bed £85.70 £91.26 £85.70 Frozen at 2015 rate
3-Bed £93.27 £99.65 £93.27 Frozen at 2015 rate
4-Bed £104.86 £109.30 £104.86 Frozen at 2015 rate

BRMA 8 Belfast

Number of bedrooms 2015 LHA rate 30th percentile rate for 2018 2018 LHA rate Method of calculation
Single room £42.15 £47.92 £42.15 Frozen at 2015 rate
1-Bed £83.65 £90.55 £86.16 Increased by 3%
2-Bed £92.44 £99.51 £95.21 Increased by 3%
3-Bed £101.90 £112.08 £104.96 Increased by 3%
4-Bed £118.51 £140.17 £122.07 Increased by 3%

Notes

30th percentile of market rents

The 30th percentile figures shown here are derived from twelve months worth of lettings information, collected from 1 October 2016 to 30 September 2017. This means that in each market area, if there were 100 properties available for letting of the appropriate size, the LHA would be based on the 30th lowest rent charge of those 100 properties.
In other words tenants who receive LHA should have access to the bottom 30% of the market.

Map of Broad Rental Market Areas (BRMAs) in Northern Ireland.

Map showing the eight Broad Rental Market Areas (BRMAs) in Northern Ireland