You’re a landlord. You know the local market you operate in. You’ve a finger on the pulse. In fact, you hold a unique and valuable insight into the market. And as a subscriber to www.residentiallandlord.co.uk, you’re likely interested in finding out more about the private rented sector and Local Housing Allowance.
Be a part of our Landlord Survey
We’ve created a brief online Landlord Survey. It’s a chance for residential landlords to give us some feedback, help build an insight into the world of private landlords and the market you operate in and kick off more regular contact with VOA Rent Officers.
Please take a few minutes to participate. As a thank you, VOA Rent Officers will email an early overview of responses back to those that participate. www.residentiallandlord.co.uk will also share the outcomes wider at a later stage. The more landlords that take part, the more representative and interesting the results we can share with you.
Why is it in the interest of private landlords to work with Rent Officers?
- Local Housing Allowance (LHA) plays a key role in helping many people meet their rental commitments and maintain their private sector residential tenancies. Providing lettings information will help to ensure that LHAs include a representative sample of the market private landlords work in.
- LHA rates are important to landlords and tenants alike - there are over 900,000 claims for LHA. Whether or not it is a conscious decision to take on a tenant who intends claiming housing benefit, landlords may still find that their tenant needs support with their rent at some stage of the tenancy.
- even one individual example of private letting makes a difference - each LHA rate is calculated on a monthly basis – a regular supply helps maintain a representative sample and LHA rates track market trends.
- the lettings information Rent Officers use for LHA is provided voluntarily by landlords, agents and tenants – it is a credit to the whole sector that we can produce LHA rates in England based over 450,000 records of actual lettings.
- a comprehensive database of residential lettings represents an important resource for the wider Private Rented Sector (PRS). It is in the interest of the whole sector to know the levels of rents actually being achieved as against those advertised. We are exploring forms of publication that will benefit and engage the whole PRS.
Why not invite a Rent Officer to your next local landlord meeting or forum?
Rent Officer Lettings Research work
VOA Rent Officers work closely with the Private Rented Sector (PRS). Our aim is to gather a truly representative sample of actual lettings across England. Sources of information include estate and letting agents, private landlords, large corporate landlords, registered social landlords, tenants, universities and colleges.
There is no obligation on landlords to provide Government or any other organisations with details of the rents achieved on their lettings. Our lettings data is the result of the goodwill and co-operation of those working and living within the PRS.
 Steve Peters, Lettings Research Business Manager (South) explains “The greater the range of sources of information, types of rental properties and the areas within which they are let, the more comprehensive the information used to determine the LHAs. We are working hard to engage private landlords and make sure the market they operate in, especially where they let privately rather through an agent, is properly represented in the LHA rates we produce. The information from a landlord with just one property is as important to us as one with a hundred.”
All lettings information collected is treated in confidence and can only be accessed by authorised Rent Officers.
You can contribute details rental information via the Landlord Survey or contact us in person. Our website also includes details of events or local landlord forums where you can meet a Rent Officer and Contact Details for Lettings Research Teams(www.voa.gov.uk/rentofficers).
All about Rent Officers
VOA Rent Officers are employed by the Valuation Office Agency (VOA). They are valuers of private residential property with a range of duties, or statutory functions, that are set out in legislation.
What do VOA Rent Officers do?
All Rent Officer valuations are based on market rents. This involves compiling a representative sample of private rented sector lettings in England. The current sample stands at over 450,000 lettings.
The three main statutory functions are:
1. Local Housing Allowance (LHA)
Local Housing Allowance (LHA) rates are used by local authorities to calculate housing benefit. Rent Officers determine Broad Rental Market Areas (BRMAs), the area within which a set of LHA rates apply. Using market rents, they then determine the LHA rates that apply to the six categories of LHA (Room in a shared property and 1 to 5 bedrooms). LHA rates are published monthly on the LHA-Direct website (https://lha-direct.voa.gov.uk).
2. Local Reference Rent (LRR) Scheme
For most on-going housing benefit claims which commenced before April 2008 Rent Officers make determinations for individual claims referred by local authorities. This is referred to as the LRR Scheme. Last business year Rent Officers dealt with 460,336 cases under the LRR Scheme.
3. Fair Rents
Rent Officers maintain a register of Fair Rents for regulated tenancies under the Rent Act 1977 and Rent (Agricultural) Act 1976. This is a form of rent control, based on market rents, for most private tenancies that commenced before 15th January 1989.
How are Local Housing Allowances produced?
There are the steps to producing Local Housing Allowances (LHAs):
 Step 1. Determine the Broad Rental Market Areas (BRMAs) - the geographical area used to determine the LHA rate. These are determined considering where a person could reasonably be expected to live taking into account access to facilities and services for the purposes of health, education, recreation, personal banking and shopping. When determining BRMAs the Rent Officer takes account of the distance of travel, by public and private transport, to and from these facilities and services. Each BRMA must contain residential premises of a variety of types, including such premises held on a variety of tenures; and sufficient privately rented residential premises.
Step 2. Collect and maintain representative sample of private rented sector lettings in each BRMA. These are known as the List of Rents. Maps and graphical illustrations of the List of Rents for each BRMA in England can be found at the LHA-Direct website.
Step 3. Determine the LHA rates each month - LHA rates are the median, or mid-point rent level, of achieved market rents for each category of LHA within the BRMA.
Proposed changes to LHA in 2011
The Chancellor announced a range of proposed changes to LHA in the June 2010 Budget that will come
into effect from 2011:
From April 2011:
- LHA levels will be restricted to the 4 bedroom rate;
- A new upper limit will be introduced for each property size, with upper limits set at:
- £250 a week for a 1 bedroom property
- £290 a week for a 2 bedroom property
- £340 a week for a 3 bedroom property
- £400 a week for a 4 bedroom property or larger.
- The £15 weekly excess provision currently payable within the LHA rules will be removed.
- The size criteria will be adjusted to provide for an additional bedroom for a non-resident carer where a disabled person has an established need for overnight care.
From October 2011:
The Local Housing Allowance will be set at the 30th percentile of rents in each Broad Rental Market Area, rather than the median (50th percentile).
Click here to have your say and take part in the 2010 landlord survey now >>>
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