LHA by area › Luton
LHA rates in Luton
The Valuation Office Agency's Local Housing Allowance for the Luton Broad Rental Market Area, April 2026 to March 2027, and what those rates return against what houses actually sold for in each postcode district.
3-bed LHA: £1,097 a month. 4-bed: £1,346. Room in a shared house: £435.
Best 3-bed LHA yield in the area: 5.1% in LU1, where a terraced house sold for a median £260,000 in the last 12 months.
Rates
| Bedrooms | Per week | Per month |
|---|---|---|
| shared accommodation (room) | £100 | £435 |
| 1 bedroom | £161 | £698 |
| 2 bedrooms | £201 | £873 |
| 3 bedrooms | £253 | £1,097 |
| 4 bedrooms | £311 | £1,346 |
3-bed LHA yield by postcode district
3-bedroom LHA for the year against the median terraced sale price in the district, last 12 months, districts with at least 10 sales. Sold data as of September 2026.
| District | Median terraced sale | Gross LHA yield |
|---|---|---|
| LU1 Central Bedfordshire | £260,000 (97 sales) | 5.1% |
| LU3 Central Bedfordshire | £272,250 (83 sales) | 4.8% |
| LU2 Central Bedfordshire | £282,500 (97 sales) | 4.7% |
| LU4 Central Bedfordshire | £290,000 (58 sales) | 4.5% |
| LU5 Central Bedfordshire | £300,000 (124 sales) | 4.4% |
| LU6 Buckinghamshire | £318,000 (99 sales) | 4.1% |
4-bed LHA yield against a semi
| District | Median semi sale | Gross LHA yield |
|---|---|---|
| LU4 Central Bedfordshire | £327,000 (131 sales) | 4.9% |
| LU3 Central Bedfordshire | £345,000 (168 sales) | 4.7% |
| LU1 Central Bedfordshire | £350,000 (71 sales) | 4.6% |
| LU2 Central Bedfordshire | £350,000 (210 sales) | 4.6% |
| LU5 Central Bedfordshire | £350,000 (161 sales) | 4.6% |
| LU6 Buckinghamshire | £390,000 (116 sales) | 4.1% |
What the yield figure is
Local Housing Allowance is the most housing benefit will pay towards rent in an area, set by the Valuation Office Agency for each Broad Rental Market Area and bedroom count. It is a floor for rent, not a forecast: a tenant on benefits can pay it, and market rents usually sit above it. The yield here is the 3-bedroom LHA rate for the year, divided by the median price paid for a terraced house in the district over the last 12 months (HM Land Registry). Gross, before costs, before voids, before finance. It is a screening number for comparing areas, not an appraisal of any house.
April 2026 to March 2027 (the same figures as April 2024, per the 2026 Modification Order).
Sources: VOA Local Housing Allowance rates, VOA BRMA boundaries, HM Land Registry Price Paid Data. Districts are assigned to an area by their centre point; a district straddling two areas is shown in one.