Local Housing Allowance rates determine the maximum housing benefit the government pays toward rent. Set at the 30th percentile of local market rents, LHA rates create a government-backed revenue floor for investors in specific areas. Investors maximising rental income with LHA strategies use this data to identify high-yield opportunities with tenant stability.
Why This Matters
In the North and Wales, low property prices combined with robust LHA rates deliver 8-11% gross yields—learn more about the UK property investment market dynamics. Meanwhile, London and the South East see high capital values crush yields.
LHA rates were increased in April 2024 but frozen again in April 2025. Rates remain frozen through at least 2026, meaning your LHA income is fixed while market rents rise.
The gap between LHA rates and market rent now exceeds £100/month in some areas. Investors must screen for affordability carefully.
How to Use the LHA Map:
Select your property type
Choose from 1-bed, 2-bed, 3-bed, or 4-bed to see relevant rates.
Browse the map
Darker blue regions show higher LHA rates for your selected property type.
Click any region
View detailed rates for all property types in that Broad Rental Market Area (BRMA).
*The map updates in real-time as you change selections. LHA rates are set by the Valuation Office Agency and represent government-backed rental income.*
For HMO properties
Adjust the number of lettable rooms to see total rental income potential based on the Shared Accommodation Rate.
Before investing in LHA-dependent areas, find the best areas for your strategy using live market data and yield comparisons.
Sunderland & Teesside: 2-bed terraces under £70k delivering 8-11% yields
Wales: Currently showing the UK's strongest yield growth
The North: Low capital values with robust LHA rates create genuine cash flow
A 2-bedroom terraced house attracts small families who stay longer than single tenants, while remaining liquid enough to sell when needed.
Under-35 Rule: Singles under 35 only qualify for Shared Rate.
No DSS Illegal: Blanket bans are illegal under Renters' Rights Act 2025.
Verify exact LHA rates using the map for your target postcode
Calculate yields at multiple purchase prices using the built-in calculator
Screen for tenant affordability—guarantors are essential for any shortfall
Source specialist DSS landlord insurance (15-20% higher than standard)
Stress test cash flow at 7-8% interest rates
Factor in the frozen rate environment through 2026
Match property bedroom count to expected household size
LHA rates updated April 2025. Rates subject to annual review by the Valuation Office Agency. This calculator is for indicative purposes only and does not constitute financial advice. Always conduct thorough due diligence and consult with qualified professionals before making investment decisions.