SERVICE POLICY MUTUAL EXCHANGES AND SUCCESSIONS OF TENANCY

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1 SERVICE POLICY MUTUAL EXCHANGES AND SUCCESSIONS OF TENANCY INTRODUCTION This policy was reviewed following the introduction of Choice Based Lettings for the North Yorkshire Sub-Regional area. In light of the Welfare Reform changes introduced from April 2013 whereby tenants of working age under occupying properties have a percentage of the eligible Housing Benefit deducted before the entitlement is calculated, this policy was reviewed in September 2012, to enable tenants to move with arrears of rent arising solely as a result of the Spare Room Subsidy. The policy is consistent with the aims of the Strategic Tenancy Policy to: a) target our resources most effectively to those in the greatest need b) make better use of our stock c) support more tenants to improve their lives d) to contribute to the maintenance of sustainable communities Yorkshire Coast Homes consider applications for exchanges and succession in line with the legislation contained in the Housing Act 1985 as those tenants whose tenancy transferred from Scarborough Borough Council are legally entitled to the rights conferred by this legislation. To ensure that the consideration of Mutual Exchanges and Rights of Succession are kept straightforward a deliberate decision has been made not to consider new tenants after transfer of the housing stock under the Housing Act KEY OBJECTIVES To ensure that Yorkshire Coast Homes (YCH) policy on Mutual Exchange and Successions of Tenancy:- is fair, equitable and consistent in its application; does not discriminate against minority groups. 2. KEY POLICY STANDARDS Responsible Officer: Kev Bradshaw Reviewed by Service Improvement and Property Committee June 2016 Approved by the Board July 2017 Review Date: June 2019 Version 1.0

2 2 2.1 YCH will adopt practices to encourage and facilitate exchanges in order to provide tenants with the best possible prospects of mobility across North Yorkshire and further afield, some of whom will have only low priority for a move through the CBL scheme. Tenants who hold an Assured Shorthold tenancy and have been tenants for less than 12 months or where we have deferred conversion to a full Assured tenancy, due to a breach of tenancy, will not be allowed to exchange. Any tenant holding a Fixed Term Tenancy will also not be able to move by way of a mutual exchange. 2.2 Yorkshire Coast Homes sponsor HomeSwapper the largest national provider of possible mutual exchange matches. HomeSwapper is a direct home swap service for social housing tenants who want to swap accommodation. Tenants in a council house or housing association property can do a house exchange and swap homes with another tenant through HomeSwapper. As members of HomeSwap Direct they will also support tenants to search for swap partners across all members' sites on their websites. Every provider of social housing is required to sponsor one of the HomeSwap Direct partners. 2.3 In general it is the policy of YCH to approve exchanges provided that certain conditions are met. YCH may refuse a mutual exchange under the grounds set out in Schedule 3 of the Housing Act 1985 as if they applied to assured tenancies, in particular where:- one of the properties would be overcrowded: (as set out in the related North Yorkshire Common Allocation policy); one of the properties would be under occupied: (as set out in the related North Yorkshire Common Allocation policy); YCH, another Registered Provider or a Council have commenced legal action by the serving of a Notice of Seeking Possession (NOSP) of the home of any of the tenants involved; the property is not suitable for the needs of the proposed tenant; (as set out in the related North Yorkshire Common Allocation policy); the exchange would mean that a home adapted in some way for disabled or elderly people would have no one living there who needed the adaptation. (as set out in the related North Yorkshire Common Allocation policy); 2.4 In addition, the tenant must not be in breach of their tenancy agreement, for example:-

3 3 tenants must not owe any rent (other than solely as a result of the Spare Room Subsidy from April 2013), court costs or rechargeable repairs; the property and garden must be in acceptable condition. In these circumstances if all other conditions appertaining to the exchange are met permission must be granted for the exchange conditional to the clearing of the debt and/or the tidying of the property and garden to the satisfaction of YCH. 2.5 All applications for mutual exchanges will be processed within a maximum of 42 days of receiving the fully completed applications from all interested parties. 2.6 In the event of an exchange proceeding without YCH's express authorisation, YCH will promptly seek to ensure that the tenants return to their authorised tenancy through legal action if necessary. 2.7 Methods of Exchange YCH has two main types of tenant:- Transferred Tenants" who were previously tenants of Scarborough Borough Council and who became tenants on completion of the transfer. "New Assured Tenants" who became tenants after the date of transfer. "Transferred" and "new assured" tenants are entitled (with the consent of YCH) to seek an exchange with either another tenant of YCH, a tenant of another qualifying landlord such as a Local Authority or Registered Provider. All mutual exchanges must be undertaken by assignment by deed. Where a transferred tenant of YCH exchanges with a new assured tenant of YCH (which would mean giving up certain contractual rights to buy and also the balance of the transferred tenant's rent guarantee), YCH will extend the transferred tenant's Tenancy Agreement of their new home to add back lost rights under the assignment. This variation will be affected and confirmed by letter. 2.8 Types of Exchange (a) (b) All parties to the exchange are transferred tenants of YCH All parties will take over each other s Tenancy Agreement and all the rights and obligations contained in them. The types of tenancy will be identical. The only practical difference will be the difference in the level of rent charged for the particular properties involved. Exchange between a transferred tenant of YCH and a new assured tenant of YCH The new assured tenant will take over the transferred tenants Tenancy Agreement, they will pay the same rent as the transferred tenant previously paid. Although the transferred tenant's tenancy agreement states that the tenant has the preserved right to buy, this will not apply to the new assured tenant as they are not a "qualifying person" as defined in section 171 B of the Housing Act 1985.

4 4 The transferred tenant will take over the new assured tenant's tenancy agreement. As a matter of law this means that they will pay the higher rent previously charged to the new assured tenant, they will not have the rent guarantee and will also lose certain contractual rights, in particular, the contractual Right to Buy to be given to a non-tenant member of the family successor. However, see paragraph 2.7 above. (c) (d) Exchange between new assured tenants of YCH Each tenant will take over the others Tenancy Agreement. These agreements will be identical (except for the level of rent charged) and therefore no complications should arise. Mutual exchange between a transferred tenant of YCH and a Local Authority (or Non Charitable Registered Provider) secure tenant. The incoming local authority tenant will take the benefit of the transferred tenant's tenancy agreement with the balance of the rent guarantee. The incoming Local Authority tenant will lose the Right to Buy (even if it is referred to in the tenancy agreement which they will take over) as they are not a "qualifying person" as defined in Section 171B of the Housing Act The transferred tenant will take over the local authority tenants' Tenancy Agreement and will become a secure tenant of that local authority. (e) Mutual exchange between a transferred tenant of YCH and a secure tenant of a Charitable Registered Provider (RP) The incoming secure tenant of a charitable RP takes over the transferred tenants' tenancy agreement but, for the reasons given above does not acquire the Right to Buy. The outgoing transferred tenant will take over a tenancy agreement with similar rights to YCH's transferred Tenancy Agreement but will lose the Right to Buy. (f) Mutual exchange between a transferred tenant of YCH and an assured tenant of another Registered Provider The incoming RP tenant will take over the transferred tenant's Tenancy Agreement but will not have the Right to Buy. The outgoing transferred tenant will take over the other RP's assured tenant's Tenancy Agreement, but will lose the balance of the rent guarantee and the Right to Buy. (g) Mutual exchange between a new assured tenant of YCH and an assured tenant of another Registered Provider Both types of tenancy agreement will be broadly similar apart from differential rents with no loss of rights to any tenant. 2.9 Procedure All parties to a proposed exchange must apply in writing to YCH for consent to exchange using YCH's standard request form. YCH will only consider multiple exchange applications from up to three applicants. Where an applicant has applied for then cancelled 3 or more exchanges, a fee may be charged for gas & electric checks to be carried out in order for an exchange to take place (fee payable on

5 5 application). YCH must within 42 days of receipt of the original application give the tenant in writing a decision either granting consent to the exchange, granting conditional consent or refusing the application. This is the statutory time limit after which the tenants have a legal right to complete the exchange without a decision. YCH aims to give a decision to all applicants within this timescale. Approval will only be given following a visit to the property by appropriate YCH staff. The tenant may be asked to make good elements of their property before permission to exchange is granted Conditional consent may be given to an exchange where one or both of the parties are in rent arrears. The exchange is conditional on the parties bringing their rent accounts up to date prior to the exchange taking place. Where a tenant is in arrears of rent solely as a result of under-occupying their accommodation consent will be given to them exchanging with the arrears on the provision that they meet the following criteria: The tenant has their income and outgoings examined by one of YCH s Money Management Officers who agrees that the rent liability is causing financial hardship. The tenant has not been served with NOSP due to arrears of rent and the total indebtness is less than 500 The move is to a property which is the right size for the tenant and their household and where the rent for the property would be fully covered by the payment of housing benefit. The tenant agrees to a suitable arrangement plan for the payment of the arrears on moving 2.11 Information Whenever a tenant of YCH requests consent to exchange with another tenant, YCH will give advice on the implications of taking over another tenants' tenancy agreement. This will include:- rights or liabilities which the tenant may lose or incur as a result of the mutual exchange; differences in rent setting regimes applicable to different types of tenancy; effects on succession rights Succession (a) (b) Succession is the right enjoyed by assured tenants that provides for the transfer of a tenancy to another specified person. This usually takes place when the original tenant has died, but it can be exercised when the tenant is alive (provided the person claiming to succeed would be eligible had the tenant died). Succession has to be distinguished from any right to remain in the dwelling. In law, only the spouse (or partner living with the tenant as man/wife at the time

6 6 of death) is entitled to remain in the property but YCH can, at its discretion, allow other successors to remain in the property. (c) (d) Applications from people with a statutory or contractual right to succeed will be dealt with promptly, taking account of legislation, the requirements of the applicant and the requirements of YCH. In considering applications for succession, YCH will also consider the implications arising from the following factors, in accordance with its Lettings policy:- Under-occupation by statutory successors. Properties converted for tenants with special needs, when the successor has no such requirements. Applications from those with no contractual or statutory right to succeed. (e) Second Succession Where a statutory succession has already taken place, YCH may allow a further discretionary succession to a member of the tenant s family:- in circumstances described in the YCH tenancy agreement; and where this is consistent with the criteria contained within YCH s Allocations Policy. In considering this regard will be given to any resulting under-occupancy of the property, the impact if any of the removal of the bedroom subsidy and the degree of housing need in the locality. (f) Other Household Members YCH will exercise discretion and will treat same sex partners on the same basis as cohabiting partners of different sexes when deciding claims for succession. There will be instances in which a tenant has another person living with them who is not a cohabiting partner or a member of family (for example a companion or carer) who provides a vital role in looking after them or their dependants. Under existing law, the tenancy agreement or current policy, other such members of the household would not have the right to succeed. YCH will use its discretion to allow succession to the tenancy (but with no right to remain) if:- the person has resided with the tenant for a minimum period of twelve months and; they have been looking after the tenant (e.g. as a carer); or they had taken responsibility to look after the tenant s dependants. again having regard to any resulting under-occupancy and the degree of housing demand in the area

7 7 Members of the household with no right to remain will be offered suitable alternative accommodation. Each case will be looked at individually and alternative accommodation will be offered in the area. In reality it often proves difficult to find suitable alternative accommodation and, in these cases, the member of the household will be allowed to remain in the property until such time as suitable alternative accommodation is available. (g) Right to Remain The introduction to this section of the policy sets out the legal position with regard to successors being allowed to remain in the property: only the spouse (or partner living with the tenant as man/wife at the time of death) are entitled to remain in the property. This policy allows discretion to the Head of Housing Services or other authorised senior officer to allow the right to remain to those members of the family who can demonstrate a long standing commitment to the tenant and the property in which they live. This will include family members who have spent a considerable period of their adult life living with the original tenant, have contributed to the household expenditure and have devoted time and money to the property in which they live. In exercising this discretion regard will be given to any resulting under-occupation, affordability of the property and the level of housing demand in the area. The only exceptions will be where the successor is not of pensionable age and the property is specifically designed for elderly people; or, where the property has been designed or adapted to meet the needs of a disabled person, and there is no disabled person in the household. 3. KEY TARGETS AND PERFORMANCE INDICATORS Compliance with any relevant regulatory code. To process all mutual exchanges and successions of tenancy within agreed timescales. 4. MONITORING, REVIEW AND CONSULTATION PROCESS The Board will receive regular reports on the performance of the Mutual Exchange Scheme and performance against agreed targets and indicators. Reports to the Regulator. Benchmarking through review comparisons on best practice elsewhere as part of Continuous Improvement. Consultation with tenants and other representative groups on performance. 5. SERVICE DEVELOPMENT AND CONTINUOUS IMPROVEMENT A service review is to be undertaken in September 2014 to establish how exchanges are assisting people to move due to welfare reform, the performance of the exchange services provided and to learn from good practice to improve services.

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