MUTUAL EXCHANGE POLICY (Approved - Board Meeting 21 July 2009) Page 1 of 7
Southway Housing Trust Mutual Exchange Policy 1. Objectives of Policy 1.1 To encourage exchanges, so that Southway Housing Trust will achieve the best utilisation of company stock and meet housing demand. 1.2 To provide tenants with a positive means whereby they can improve their housing situation at a time of limited supply. 1.3 To make sure the legal rights of tenants to exchange are protected and acted upon. 1.4 To consider applications from assured tenants of Southway Housing Trust, of qualifying Registered Social Landlords and tenants of a Local Authority. 1.5 To act promptly in making a decision within 42 days of the tenant s application. 1.6 To withhold permission on exchanges that do not meet the criteria and provide advice and assistance in such cases. 1.7 To give conditional consent in appropriate circumstances in accordance with the tenancy agreement. 1.8 To make sure that in the event of an unauthorised exchange taking place appropriate action is taken to return those tenants to their authorised tenancy. Links to Tenant Services Authority (formerly Housing Corporation) Regulatory Criteria (2005) and Regulatory Code: Properly Governed: 2.1.2, 2.3.4 Properly Managed: 3.5.2, 3.5.3, 3.5.5, 3.5.6 2. Definition of an Exchange 2.1 Assured tenants of Southway Housing Trust have the right to exchange and this is broadly the same as the right enjoyed by secure tenants under Section 92 of the Housing Act 1985:- It is a term of the tenancy agreement that the tenant, with the written consent of the landlord, may assign their tenancy to another tenant. This will be subject to the qualifications that apply under Section 92 as these are reproduced in Southway Housing Trust tenancy agreements. Page 2 of 7
2.2 The tenancy agreement relating to a Southway Housing Trust property and the terms of the tenancy can therefore be assigned to another tenant. 3. Implementation of Policy 3.1 Procedures will be put in place and staff will be trained to deliver a consistent service in line with legal requirements and policy objectives. 3.2 Withholding of permission must be in accordance with the terms of the Tenancy Agreement and permission can be conditional. Permission can only be refused on certain grounds and provided notice of the ground is given within 42 days of the application being made. 3.3 Consent will be withheld based on the grounds contained in Schedule 3 of the Housing Act 1985. These includes the following circumstances:- Either tenant has been issued a Notice of Seeking Possession on certain grounds Either tenant is subject to a Possession Order made by the Court Proceedings have been commenced for possession on certain grounds The tenancy is a Starter or Demoted tenancy Either tenant (or person residing with tenant) is subject to a Suspended Possession Order on anti-social behaviour grounds or an application has been made for such an Order Either tenant (or person residing with tenant) is subject to one of certain Orders including anti-social behaviour injunction, ASBO or an application for such an Order Either property is specifically designed or adapted to help a disabled person or has other features the new tenant does not need Either property is too large or too small for either tenant. We will use discretion in certain cases to make best use of our stock The grounds for withholding consent to an exchange are provided in full at Appendix 1. 3.4 Consent can be conditional on payment of all outstanding rent arrears under 150 or any breach of tenancy being remedied. 3.5 Furthermore, in respect of rent arrears, consent can be conditional on a tenant paying regular agreed payments for three months for arrears over 150 but under 250, six months for arrears over 250 but under 500 and nine months for arrears over 500. These payments to continue once the exchange has taken Page 3 of 7
place and until the debt is cleared. Thereafter they will be monitored (and pursued) as Former Tenant Arrears. 3.6 All mutual exchanges will be by way of Assignment. An assignment is where a person takes over an existing tenancy. Either tenant will be advised of the loss of a secure tenancy as a result of this assignment if this applies and of the implications of this. In the event of exchanges to and from the Southway area, a secure tenant who is to exchange with an assured tenant of Southway will lose certain rights which are attached to a secure tenancy. A Southway assured tenant with protected rights who exchanges outside the area will lose some of their rights. Southway tenants who exchange within the area will retain all their existing rights. 3.7 All mutual exchanges will be taken through the standard sign up procedure and an incoming tenant from outside the Southway area will be issued with a Tenants Handbook and other relevant information. 3.8 Prior to agreeing to a mutual exchange a property inspection and tenancy check will be carried out. Any tenancy breaches must be remedied. Similarly any damage or alteration to the property will be reinstated by the leaving tenant or will be accepted by the incoming tenant with any future maintenance or reinstatement responsibilities. 4. Monitoring 4.1 Monitoring of performance against this policy will take place on a quarterly basis to make sure that the provisions of the policy are applied correctly and consistently. 5. Linkages with Other Southway Policies and Government Legislation 5.1 This policy should be read in conjunction with the following policy/policies:- Customer Care Policy and Standards Customer Compliments and Complaints Voids and Repairs Equal Opportunities and Diversity Allocations 1985 Housing Act 1998 Housing Act Legal Document Deed of Assignment Legal Document Licence to Assign Tenancy Page 4 of 7
POLICY IMPLEMENTATION AND REVIEW HISTORY Date Approval by Board: 21/7/09 Date Implemented: 3/8/09 Projected Date of Review: 7/2011 Review Date: / / Amendment(s) Made/Reason Date Approved by Resources Committee: / / Date Implemented: / / Page 5 of 7
Appendix 1 GROUNDS FOR WITHHOLDING CONSENT TO ASSIGNMENT BY WAY OF EXCHANGE - SCHEDULE 3 OF THE HOUSING ACT 1985 Ground 1 The tenant or the proposed assignee is obliged to give up possession of the dwellinghouse of which he is the secure tenant in pursuance of an order of the court, or will be so obliged at a date specified in such an order. Ground 2 Proceedings have been begun for possession of the dwelling-house of which the tenant or the proposed assignee is the secure tenant on one or more of grounds 1 to 6 in Part I of Schedule 2 (grounds on which possession may be ordered despite absence of suitable alternative accommodation), or there has been served on the tenant or the proposed assignee a notice under section 83 (notice of proceedings for possession) which specifies one or more of those grounds and is still in force. Ground 3 The accommodation afforded by the dwelling-house is substantially more extensive than is reasonably required by the proposed assignee. Ground 4 The extent of the accommodation afforded by the dwelling-house is not reasonably suitable to the needs of the proposed assignee and his family. Ground 5 The dwelling-house:- (a) forms part of or is within the curtilage of a building which, or so much of it as is held by the landlord, is held mainly for purposes other than housing purposes and consists mainly of accommodation other than housing accommodation, or is situated in a cemetery, and Page 6 of 7
(b) was let to the tenant or a predecessor in title of his in consequence of the tenant or predecessor being in the employment of:- Ground 6 the landlord, a local authority, a new town corporation, a housing action trust, an urban development corporation, or the governors of an aided school. The landlord is a charity and the proposed assignee s occupation of the dwellinghouse would conflict with the objects of the charity. Ground 7 The dwelling-house has features which are substantially different from those of ordinary dwelling-houses and which are designed to make it suitable for occupation by a physically disabled person who requires accommodation of the kind provided by the dwelling-house and if the assignment were made there would no longer be such a person residing in the dwelling-house. Ground 8 The landlord is a housing association or housing trust which lets dwelling-houses only for occupation (alone or with others) by persons whose circumstances (other than merely financial circumstances) make it especially difficult for them to satisfy their need for housing and if the assignment were made there would no longer be such a person residing in the dwelling-house. Ground 9 The dwelling-house is one of a group of dwelling-houses which it is the practice of the landlord to let for occupation by persons with special needs and a social service or special facility is provided in close proximity to the group of dwelling-houses in order to assist persons with those special needs and if the assignment were made there would no longer be a person with those special needs residing in the dwelling-house. Ground 10 The dwelling-house is the subject of a management agreement under which the manager is a housing association of which at least half the members are tenants of dwelling-houses subject to the agreement, at least half the tenants of the dwellinghouses are members of the association and the proposed assignee is not, and is not willing to become, a member of the association. Page 7 of 7