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  3. Local Reference Rent

Local Reference Rent

Legal words

The average rent for property of a suitable size for the Housing Benefit claimant, carried out by the Independent Rent Officer. The LRR provides a limit on the amount of Housing Benefit that can be paid - the claimant can only receive the lesser of the LRR and the Claim Related Rent.

An LRR is only set for the following types of accommodation:

  • Conventional private tenancies where the claimant has been getting HB for the same home since 2008
  • Unconventional privately rented accommodation (including accommodation in the voluntary and charitable sectors):
    • Caravans
    • Boats
    • Hostels
    • Accommodation where the rent includes a substantial amount for meals prepared and served (“board and attendance”)
  • Rarely, a registered housing association tenancy where the local authority considers that the rent charged for the dwelling is unreasonably high

Sources:

  • Meaning of LRR: Paragraph 4 of Schedule 1 to the Rent Officers (HB Functions) Order 1997 (SI 1997/1984)
  • Use of CRR to set level of HB: Regulation 13 of the Housing Benefit Regulations 2006 (SI 2006/213)
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