The housing element is often the largest part of a Universal Credit claim. Here’s how it works for private and social housing tenants.
For the wider overview of housing support, LHA caps, DHPs and council-cost relief beyond Universal Credit alone, use the main Housing Benefits & Support hub.
Read more: See our Universal Credit guide for a complete overview of this topic.
How the Housing Element Works
| Tenure Type | How Rent Help Is Calculated |
|---|---|
| Private renter | Based on Local Housing Allowance (LHA) rates for your area |
| Social housing tenant | Based on your eligible rent minus any bedroom tax |
| Supported housing | Usually through Housing Benefit (not UC) |
| Homeowner | Support for Mortgage Interest (SMI) — separate scheme |
The housing element is added to your other UC elements (standard allowance, child, disability, etc.) to form your maximum UC entitlement before the earnings taper.
Private Renters — Local Housing Allowance
What LHA Covers
LHA sets the maximum amount of housing element you can receive. It’s based on:
- Your Broad Rental Market Area (BRMA) — Your local area for rent comparisons
- The number of bedrooms you’re entitled to — Based on household size (see below)
Bedroom Entitlement
| Household Composition | Bedrooms Allowed |
|---|---|
| Single person under 35, no children | Shared accommodation rate (1 room in shared house) |
| Single person 35+, no children | 1 bedroom |
| Couple, no children | 1 bedroom |
| 1 child | 2 bedrooms |
| 2 children of same sex under 16 | 2 bedrooms (shared room) |
| 2 children of different sex, one 10+ | 3 bedrooms |
| 3 children (2 same sex under 16 + 1 other) | 3 bedrooms |
| Overnight carer needed | +1 additional bedroom |
| Disabled child who can’t share | +1 additional bedroom |
LHA Rates 2026-27
LHA rates vary a lot between areas. Look up your area’s rate with the GOV.UK LHA rates tool or ask your local council.
Shared Accommodation Rate
If you’re single, under 35, and have no children, you usually get the shared accommodation rate — enough for a room in a shared house, not a self-contained flat. Exceptions include:
- You’re a care leaver under 25
- You’re aged 25 or over and have lived in a homeless hostel for at least 3 months
- You get the daily living part of PIP, or the middle or highest care rate of DLA
- You need an overnight carer
- You’ve been a victim of domestic abuse or modern slavery
- You’re an ex-offender managed under multi-agency public protection arrangements (MAPPA)
Social Housing Tenants
How Your Housing Element Is Calculated
For council or housing association tenants, your housing element is based on your eligible rent — the rent your landlord charges minus ineligible service charges.
Ineligible charges include:
- Water and sewerage
- Meals
- Personal laundry
- Cleaning (unless communal areas)
- TV licence
The Bedroom Tax (Spare Room Subsidy)
If you have more bedrooms than DWP says your household needs, your housing element is reduced:
| Spare Bedrooms | Reduction |
|---|---|
| 1 spare bedroom | 14% of eligible rent |
| 2+ spare bedrooms | 25% of eligible rent |
Example: Your eligible rent is £400/month and you have one spare bedroom. Your housing element is reduced by £56 (14% × £400), so you receive £344.
Bedroom Tax Exemptions
The reduction does not apply if:
- You or your partner are pension age and claim Housing Benefit instead of UC
- You’re in supported or temporary housing
- A member of your household needs an overnight carer
- You’re a foster carer (or have been in the last 12 months)
- A child cannot share a bedroom due to disability
Service Charges Covered by UC
Some service charges are eligible and included in your housing element:
| Eligible | Not Eligible |
|---|---|
| Communal area maintenance | Contents insurance |
| Communal heating and lighting | Water/sewerage |
| Communal cleaning | Personal cleaning |
| Lift maintenance | Meals |
| Entry systems | TV licence |
| Communal laundry | Personal laundry |
Support for Mortgage Interest (SMI)
If you own your home, you don’t get a housing element. Instead, you may qualify for SMI. Support for Mortgage Interest is a loan towards the interest on your mortgage, usually on up to £200,000 of it, repaid with interest when you sell or transfer your home; on Universal Credit it starts after 3 months in a row on the benefit.
- On Universal Credit it starts after you've got it for 3 months in a row; on Pension Credit, from the date you start getting it.
- It usually covers the interest on up to £200,000 of the loan, but only up to £100,000 if you get Pension Credit or started claiming another qualifying benefit before January 2009 while below State Pension age.
- It's worked out at a set interest rate, currently 3.66%, not your own mortgage rate.
The full rules are in our guide to Universal Credit if you own a house.
Discretionary Housing Payments (DHP)
If your housing element doesn’t cover your full rent, your local council may award a DHP to bridge the gap. DHPs are:
- Usually temporary
- Based on your individual circumstances
- Not guaranteed — councils have limited budgets
- Particularly aimed at those affected by the bedroom tax, LHA shortfalls, or the benefit cap
Apply through your local council’s housing benefit team.
Housing Element and the Benefit Cap
If your total benefits are above the benefit cap, the housing element is usually the part that’s reduced: see the benefit cap explained for the limits and exemptions.