This Order amends the Rent Officers (Housing Benefit Functions) Order 1997 (“the Rent Officers Order”) and the Rent Officers (Housing Benefit Functions) (Scotland) Order 1997 to make changes to the way in which rent officers determine broad rental market areas (“BRMAs”) and the local housing allowance (“LHA”).

Article 2(3) amends article 4B of the Rent Officers Order. Sub-paragraph (a) amends paragraph (1A) so that where a rent officer considers that one or more BRMAs need to be determined, a determination will only be made where the Secretary of State agrees the rent officer should do so.

Sub-paragraph (b) substitutes paragraph (2A) so that a rent officer determines LHA rates annually in accordance with Schedule 3B no more than 20 working days after the publication of the consumer prices index (“CPI”) as at September of that year.

Sub-paragraph (c) substitutes paragraph (3A) so that a BRMA determination take effect on the day it is made for the purpose of allowing a rent officer to determine an LHA and from the 1st April after it is made for other purposes. Sub-paragraph (c) also inserts a new paragraph (3B) which provides that an LHA determinations take effect from the 1st April after it is made.

Article 2(4) amends Schedule 3B to the Rent Officers Order. Sub-paragraph (a) makes an amendment to paragraph 1 consequential on the substitution of article 4B(2A) by article 2(3)(b) of this Order.

Sub-paragraph (b) amends paragraph 2 to change the way in which the LHA is determined. A new sub-paragraph (1A) is inserted so that the LHA is the lower of the rent at the 30th percentile of listed rents or the previous year’s LHA increased by reference to CPI.

Sub-paragraphs (11) and (12) are substituted by new sub-paragraphs (11) to (13) which have the following effect. Sub-paragraph (11) provides for the method of increasing the LHA by reference to CPI. Where the CPI published in any year is not a positive number or is zero, the rent at the 30th percentile will be compared with the previous year’s LHA rate. Sub-paragraph (12) provides for the LHA to be rounded to the nearest whole penny.

Article 3 makes equivalent amendments to the Rent Officers (Housing Benefit Functions) (Scotland) Order 1997.

A full impact assessment has not been published for this instrument as it has no impact on the private sector or civil society organisations.