Local housing allowance rates make no sense. Where are people supposed to live?

[Dundundun]

I'm a single parent and claim UC and work part time due to health issues.

I am looking to rent a 2 bed property in Anglesey and the local housing allowance is £396pcm. I have been looking since September and not one single 2 bed property has come up for less than £425pcm anywhere and 90% or more are over £500.

How do they work out the LHA? Surely that can't be right that it's set so low? I thought it was supposed to be the bottom 30% of properties or something? What are people supposed to do?

It's the average of the bottom 30% of properties in their defined "broad market area" which could well be enormous (wouldn't be surprised to find it was the whole of Gwynedd for example).

So it will include areas that are incredibly cheap even if they're miles away.

I am unable to work due to my health, and my LHA is the same as yours. I have a 2 bed property and the rent (average for my area) is £595. I have to use my disability benefit to pay the extra.

Live in well built, affordable, sustainable social housing.
But that's like rocking horse shit.

There you go - it's the whole of North West Wales

Nonsensical because not everyone can live in the cheapest areas especially in huge rural areas where you need to live near work or spend more than you'd save on driving everywhere. And as you say - what do you do when all the houses you could afford are already lived in?

I managed to find a 2 bed property and the landlord even lowered the rent he was asking so I could have it- my shortfall is £410 a month which is all my maintenance. I don't know what I would do if I didn't have that money coming in. I have no idea how they calculate these amounts because I can't find any properties cheaper then mine where I live (and I have no money to move even if I did)

YANBU they are ridiculously low. Even then most landlords won't accept housing benefit

It's £700 here which hasn't been reviewed in many years and now 3 beds are typically 1100 a month

meteorshower thank you for that, I didn't realise it was such a big area. Even that seems ridiculous though I don't personally think it's reasonable to say someone who has been born and raised in one area where all their family, friends and jobs etc are can be expected to move 50 miles away. A lot of people on low income don't drive etc. I only drive because my mum and dad pay for my tax and insurance etc. Because the public transport on Anglesey is nearly non extant in some areas.

I didnt think UC took LHA into account. Our LHA is 558 and our rent is 675. We get all of that back through universal credit, although our is an 'affodable' social housing property so whether LHA only applies to private lets is another thing.

I should add that DH and I both work, so we don't actually get 675 a month, because it's all deducted based on our monthly earnings. Some months we get £1.50 UC!

They don't make any sense and along with the bedroom tax, are adding to homeless and poverty.