SHEPHERDS BUSH HOUSING ASSOCIATION UNDEROCCUPYING AND OVERCROWDING POLICY

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1 (UNCONTROLLED WHEN PRINTED) SHEPHERDS BUSH HOUSING ASSOCIATION 1. INTRODUCTION Shepherds Bush Housing Association (SBHA) intend to avoid underoccupation of our properties and to minimise and avoid overcrowding where possible. We plan to free up underoccupied homes to better house overcrowded families. We will provide various means to enable, encourage and support downsizing, and will seek to prevent underoccupation where possible. This policy applies only to general needs and sheltered housing tenants. Provisions concerning downsizing apply only to our tenants downsizing within or beyond our housing stock, and not to tenants of other social landlords downsizing into our housing stock. 2. AIMS This policy aims to: Suitably accommodate households Provide solutions, options and incentives for downsizing Free up underoccupied homes to house overcrowded families Consider the impact of welfare reform upon underoccupation 3. UNDEROCCUPYING AND OVERCROWDING SBHA recognise that resolving overcrowding is a key factor in improving life chances; overcrowded homes can affect health and educational attainment and impact negatively on opportunities. Underoccupied homes can be expensive to heat and difficult to run, especially for elderly tenants, and contribute to trapping other households in overcrowded homes due to a general shortage of large properties in London. Larger family properties have three or more bedrooms, while significant family properties four or more; these properties are in great demand yet represent less than 20% of our housing stock. We will include larger family properties in our development programme where feasible, but recognise that our primary focus must be on the best use of our existing housing stock. 1

2 We will therefore focus on reducing underoccupation through downsizing, with a particular emphasis on our larger family properties. 4. HOUSEHOLD OCCUPANCY SBHA will determine the designation of rooms as bedrooms, and number of bedrooms required, in accordance with our Allocations and Lettings Policy. We will not count non-dependent adults aged 21 and over as members of the household other than when determining bedroom need for downsizing. We will ensure that all household members currently with their own bedroom retain such entitlement for voluntary downsizing, except where there are welfare reform implications. There are varying definitions and quantifications concerning household occupancy: Underoccupation occurs where a tenant has more bedrooms than required to adequately accommodate their household Overcrowding occurs where a tenant has fewer bedrooms than required to reasonably accommodate their household Statutory overcrowding occurs where there are more occupants than the law says there is room for in the property Intentional overcrowding occurs where a tenant allows non-dependents to join their household causing it to become overcrowded or for existing overcrowding to worsen Whilst child birth may contribute to overcrowding, the addition of new-borns to the household is not in itself considered intentional overcrowding. 5. OVERCROWDING Overcrowding typically occurs where a property is allocated based on housing need, and over a period of time the household grows, from birth or adoption or through multigeneration occupancy. We will include in occupancy agreements the maximum number of residents permitted to occupy the property. We will not tolerate intentional overcrowding, and will expect tenants to avoid creating a situation where their home becomes avoidably overcrowded. We will not normally assist with cases of intentional overcrowding due to its wilful nature STATUTORY OVERCROWDING The Housing Act 1985 establishes criteria for assessing and determining overcrowding. A standard number of rooms and a standard amount of floor space are calculated for the 2

3 household, and occupancy in excess of either of these standards constitutes statutory overcrowding. Both landlord and tenant may, in certain circumstances, be prosecuted for allowing statutory overcrowding of a property. We will not grant a tenancy which would lead to statutory overcrowding, nor will we normally renew such a tenancy. We will notify the relevant local authority of any cases of statutory overcrowding which we identify, and will seek their assistance to resolve or alleviate the overcrowding. We will work with tenants to explore solutions to cases of statutory overcrowding, and may seek possession where ultimately necessary CROWDING AND SPACE The Housing Health and Safety Rating System s Crowding and Space factors provide a statutory framework for the local authority to appraise whether the space and facilities available in the current property are sufficient for the present household or may constitute hazards under the rating system PREVENTION SBHA expect tenants to avoid statutory overcrowding and crowding and space hazards, and to take appropriate steps to mitigate overcrowding (such as requiring a non-dependant adult to seek suitable accommodation elsewhere) and or to use all reasonable endeavours to seek and obtain alternative accommodation which meets the needs of their household. In appraising non-statutory overcrowding we will disregard any non-dependant adults aged 21 or over and their dependent children as reasonably able to be accommodated independently of the household REMEDY Overcrowded households have the right to apply to their local authority as homeless on the basis that it is unreasonable for their household to continue to occupy their current property due to significant overcrowding; we will expect eligible tenants to do so as part of their attempts to resolve overcrowding. We will give additional priority to overcrowded households seeking an internal transfer under our Allocations and Lettings Policy. We will refer overcrowded households to relevant services, schemes and initiatives which could help address overcrowding. We will consider partitioning particularly large bedrooms where feasible and achievable without remodelling. We will encourage overcrowded households to explore mutual exchange opportunities with underoccupying households. We will refer non-dependents to employment and training support where this may help them to gain independence to leave the family home and thus alleviate overcrowding. 3

4 6. UNDEROCCUPATION Underoccupation typically occurs where a property is allocated based on housing need, and over time the household composition changes, such as children growing up and leaving the family home. We intend to address underoccupation through encouraging and facilitating downsizing MAJOR ADAPTATIONS SBHA expect any major adaptations to remain required, and will usually permit underoccupation where a property has a major adaptation and downsizing would be disproportionate. Refer to the Aids and Adaptations Policy for further information on adaptations WELFARE REFORM The government s welfare reforms impact particularly on working-age underoccupying households. The bedroom tax and Local Housing Allowance limitations mean that claimants who are underoccupying according to specific rules may find their Housing Benefit or Universal Credit payment reduced, creating a rent shortfall. We expect tenants who are legitimately underoccupying and affected by relevant welfare reform measures to downsize to appropriate accommodation or otherwise pay the rent shortfall. We will be proactive in encouraging and assisting these tenants to downsize, such as through making unsolicited direct offers where we consider this appropriate. Some tenants may consider taking in lodgers or subtenants in accordance with our Subletting and Lodging Policy to fund the rent shortfall and or reduce underoccupation. 7. DOWNSIZING SBHA recognise that most underoccupying tenants have been in their home for many years, and many will have fond memories of raising a family in the home. We understand that many such tenants will have been allocated their home at a time when larger family homes were aplenty, and reasonably expect that households in need today will be accommodated just as easily and swiftly. Downsizing moves will fall into one of two distinct streams; most downsizing will be voluntary and therefore incentivised and facilitated accordingly, while downsizing under certain circumstances will be compulsory and therefore managed alternatively. We will explain and encourage tenants to consider voluntarily downsizing in order to assist households in desperate need of family homes, and will provide incentive and support to encourage and facilitate downsizing where appropriate. 4

5 7.1. LOGISTICS The key method for downsizing moves will be a housing transfer, whether internal or external, however we may also make direct offers, and facilitate mutual exchanges. Tenants will be granted a new tenancy of equivalent security when they transfer with us, and we may guarantee where appropriate that rent will not increase as a result of transfer. We may commute the notice period for transfers, or waive all or a portion of the rent due during this period should we consider it appropriate to facilitate the transfer. We will award eligible tenants wishing to downsize a higher banding in accordance with our Allocations and Lettings Policy in order to assist them to move to a suitable property of their choice. We may on occasion make a direct offer of suitable accommodation to a tenant who wishes to downsize. We may permit an internal mutual exchange to a property with an additional bedroom where in accordance with a premium housing offer VOLUNTARY DOWNSIZING SBHA recognise that downsizing involves short-term disruption and upheaval for tenants and can sometimes be of little personal advantage; we must therefore ensure that the positives offered by voluntary downsizing outweigh or counterbalance the negatives. We will seek to incentivise downsizing of larger family homes by accommodating the tenant s housing preferences in addition to their housing needs, negotiating a premium housing offer from a downsizing menu. We will apply discretion where appropriate to obtain the best possible outcome for the tenant and ourselves in freeing up larger homes. We will discuss the tenant s housing desires, and identify what we can reasonably offer, and which compromises may be necessary. The premium housing offer will be relative to the size and desirability of the property we stand to gain. The downsizing menu could include: a small house a ground floor property a property with a balcony a property with car parking a sole garden a shared or communal garden a spare room painting and decorating Spare rooms would only be considered where there are no rent shortfall implications and reasonable existing utilisation (eg grandchildren regularly spending the night). A spare room would usually be a single bedroom for accommodation purposes, or otherwise a boxroom or similar for storage. We will only make premium housing offers to lifetime tenants who voluntarily downsize and are not likely to be subject to compulsory downsizing in future. 5

6 7.3. COMPULSORY DOWNSIZING SBHA have the ability to enforce downsizing in particularly limited circumstances and will normally do so where there is underoccupation. In such cases we may pay Downsizing Expenses but will not grant any Downsizing Incentive, and will require the tenant to downsize to a property strictly meeting their housing needs with no possibility of a premium housing offer. We will enforce downsizing during or following succession in accordance with our Succession Policy, and during tenancy renewal in accordance with our Tenancy Policy. 8. DOWNSIZING PAYMENTS SBHA will operate downsizing incentive and expenses payment schemes to encourage, support and facilitate downsizing. Eligibility for the downsizing incentive and expenses payment schemes will be at our sole discretion, as agreed in advance, and subject to sufficient budget. The schemes are designed to assist tenants to downsize who would otherwise be unable or unwilling to. In order to qualify for the schemes, tenants must downsize to a property meeting but not exceeding their housing needs, unless such enhancement is a premium housing offer for voluntary downsizing. Third-parties receiving a discretionary tenancy have no entitlement to either scheme. Payments will be made in accordance with the principles of the Compensation Policy; any rent arrears, recharges or other debts will be offset against an incentive payment but will not normally be offset against an expenses payment DOWNSIZING INCENTIVE SBHA will operate a downsizing incentive scheme whereby we make a payment to tenants who downsize, subject to eligibility. The payment will be 1,000 per bedroom forgone. We will only make a payment to lifetime tenants who voluntarily downsize, and where there is no possibility of compulsory downsizing. We will not normally pay an incentive payment to those tenants who benefit from a discretionary tenancy because the value of a social tenancy far exceeds that of an incentive payment DOWNSIZING EXPENSES SBHA will operate a downsizing expenses scheme to assist tenants with the expenses incurred in moving home, such as removal, mail redirection, and utility and facilities connections, subject to eligibility. 6

7 The downsizing expenses payment will be up to 750 per move, and may depend on size of property and distance between properties. We may alternatively assist and arrange and fund removals and other logistics in lieu of an expenses payment. We expect to make payment in cases of voluntary and compulsory downsizing; where eligible tenants mutually exchange with another SBHA tenant who is currently overcrowded; and where a tenant undertakes a split tenancy. 9. DISCRETIONARY TENANCIES A discretionary tenancy is a tenancy granted to a third-party outside the usual eligibility rules in accordance with our Allocations and Lettings Policy. The third-party will always be a permanent, established adult member of the tenant s household, and would be offered a property meeting their housing needs. We may consider a discretionary tenancy in certain circumstances in order to address underoccupation or alleviate overcrowding. Discretionary tenancies are awarded at our sole discretion and must be agreed by both a relevant Head of Service and Director, and must be balanced against the principles of the standard allocations system. We will require any tenant entering into a split or relief tenancy deal to sign a binding contract to end their existing tenancy before we grant any discretionary tenancies; should the tenant fail to uphold their side of the deal then we will seek possession against both the tenant and the third-party at the earliest opportunity as appropriate SPLIT TENANCY A split tenancy is a discretionary tenancy granted to a third-party, whereby the tenant agrees to downsize to a smaller property in return for the granting of the split tenancy. A split tenancy is only available to lifetime tenants, and no underoccupation would be permitted of either the third-party or tenant following the split tenancy. We should normally gain a minimum of two bedrooms, or a significant family property. We will not normally split a tenancy in multiple ways, nor on multiple occasions. The tenant would retain their existing security of tenure in their new property, while the third-party would be granted a new tenancy in accordance with our Tenancy Policy. We may offer the third-party a two year non-renewable tenancy where we consider it appropriate; the tenancy particulars will form a core term of any split tenancy deal. 7

8 9.2. RELIEF TENANCY A relief tenancy is a discretionary tenancy granted to a third-party, whereby the tenant agrees to surrender their own tenancy and vacate their home in return for the granting of the relief tenancy. Relief tenancies are usually suited to underoccupying multi-generation households conferring their continued housing right upon a non-dependent member of their household in return for vacating a significant family property. The third-party would be granted a brand new tenancy in accordance with our Tenancy Policy; they neither succeed to nor are assigned the tenant s existing tenancy DETATCHED TENANCY A detached tenancy is a discretionary tenancy granted to a third-party, whereby the tenant is overcrowded and assisting a non-dependant to move out will alleviate the overcrowding. We may on occasion offer a detached tenancy where an overcrowded household have explored all other options to address their overcrowding, and the detached tenancy would resolve or significantly alleviate the overcrowding. Such detached tenancies would usually be awarded to an adult member of the household who is able to live independently, along with any of their dependants, but otherwise unable to obtain suitable accommodation. The tenant s tenancy would remain unchanged, while the third-party would be granted a tenancy in accordance with our Tenancy Policy. 10. EQUALITY AND DIVERSITY SBHA will ensure that this policy is applied fairly and consistently. We will not directly or indirectly discriminate against any person or group of people in line with our Equality and Diversity Policy. We will act sensitively towards the diverse needs of individuals and communities and will take positive action where appropriate. 11. TRAINING SBHA will provide all staff responsible for implementing this policy with comprehensive training as required. 12. MONITORING SBHA will monitor occupancy of our homes. We will report on our performance to our Senior Management Team and Board on a regular basis. 8

9 13. REVIEW SBHA will formally review this policy every two years, unless changes in legislation or regulation require an earlier review. 14. SCOPE This policy applies to employees with statements of terms and conditions from the following organisations: Shepherds Bush Housing Association 15. STATUTORY AND REGULATORY FRAMEWORK This policy is informed by the following legislation and regulation: Tenancy Standard Housing Act 1985 Housing Act 1996 Housing Act 2004 Housing Health and Safety Rating System (England) Regulations 2005 Welfare Reform Act 2012 Welfare Reform and Work Act ASSOCIATED DOCUMENTS This policy is supported by the following documents: Downsizing Procedure Allocations and Lettings Policy Tenancy Policy Succession Policy Mutual Exchange Policy Aids and Adaptations Policy Subletting and Lodging Policy 9

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