diff --git a/synapse/handlers/login.py b/synapse/handlers/login.py
index 5c7d503a24..0220fa0604 100644
--- a/synapse/handlers/login.py
+++ b/synapse/handlers/login.py
@@ -16,7 +16,6 @@
 from twisted.internet import defer
 
 from ._base import BaseHandler
-from synapse.types import UserID
 from synapse.api.errors import LoginError, Codes
 
 import bcrypt
@@ -36,7 +35,7 @@ class LoginHandler(BaseHandler):
         """Login as the specified user with the specified password.
 
         Args:
-            user (str): The user ID or username.
+            user (str): The user ID.
             password (str): The password.
         Returns:
             The newly allocated access token.
@@ -48,9 +47,6 @@ class LoginHandler(BaseHandler):
         if not hasattr(self, "reg_handler"):
             self.reg_handler = self.hs.get_handlers().registration_handler
 
-        if not user.startswith('@'):
-            user = UserID.create_local(user, self.hs).to_string()
-
         # pull out the hash for this user if they exist
         user_info = yield self.store.get_user_by_id(user_id=user)
         if not user_info:
diff --git a/synapse/rest/login.py b/synapse/rest/login.py
index 88a3218332..bcf63fd2ab 100644
--- a/synapse/rest/login.py
+++ b/synapse/rest/login.py
@@ -16,6 +16,7 @@
 from twisted.internet import defer
 
 from synapse.api.errors import SynapseError
+from synapse.types import UserID
 from base import RestServlet, client_path_pattern
 
 import json
@@ -45,12 +46,17 @@ class LoginRestServlet(RestServlet):
 
     @defer.inlineCallbacks
     def do_password_login(self, login_submission):
+        if not login_submission["user"].startswith('@'):
+            login_submission["user"] = UserID.create_local(
+                login_submission["user"], self.hs).to_string()
+
         handler = self.handlers.login_handler
         token = yield handler.login(
             user=login_submission["user"],
             password=login_submission["password"])
 
         result = {
+            "user_id": login_submission["user"],  # may have changed
             "access_token": token,
             "home_server": self.hs.hostname,
         }
diff --git a/webclient/login/login-controller.js b/webclient/login/login-controller.js
index 53756be9ea..8bd6a4e84f 100644
--- a/webclient/login/login-controller.js
+++ b/webclient/login/login-controller.js
@@ -79,7 +79,7 @@ angular.module('LoginController', ['matrixService'])
                     $scope.feedback = "Login successful.";
                     matrixService.setConfig({
                         homeserver: $scope.account.homeserver,
-                        user_id: $scope.account.user_id,
+                        user_id: response.data.user_id,
                         access_token: response.data.access_token
                     });
                     matrixService.saveConfig();
diff --git a/webclient/login/login.html b/webclient/login/login.html
index 0fbeeabed7..a8b2b1f12d 100644
--- a/webclient/login/login.html
+++ b/webclient/login/login.html
@@ -24,7 +24,7 @@
         <!-- Login with an registered user -->
         <div>{{ login_error_msg }} </div>
         <div>
-            <input id="user_id" size="70" type="text" auto-focus ng-model="account.user_id" placeholder="User ID (ex:@bob:localhost)"/>
+            <input id="user_id" size="70" type="text" auto-focus ng-model="account.user_id" placeholder="User ID (ex:@bob:localhost or bob)"/>
             <br />
             <input id="password" size="70" type="password" ng-model="account.password" placeholder="Password"/><br />
             <br/>