Fixed term tenancies and succession Schedules 7 and 8 to the Housing and Planning Act 2016
Background and aims Budget July 2015 announced would review use of lifetime tenancies with view to limiting their use Aims of the policy: o o o To get best use out of social housing by focusing it on those who need it the most for as long as they need it To ensure those who need long term support are provided with more appropriate tenancies as their needs change over time To support households to make the transition into home ownership where they can Legislation in the Housing and Planning Act 2016
Council tenancies - current position Most council tenancies offered on a lifetime basis. Tenants right to live in their home for rest of life if keep to conditions of tenancy. Localism Act introduced flexible tenancies. But local authorities not making effective use. 2015/16, 9% of council GN tenancies offered on a fixed term basis up from 8% previous year. Compare 18% of PRP GN lettings.
Restricting lifetime tenancies Schedule 7 introduced at Commons Committee stage Prevents councils from offering new tenants lifetime tenancies. Instead, councils must grant tenancies with a fixed term of 2 to 10 years or, if notify that child under 9 - up to time child turns 19 Power to issue statutory guidance on length of tenancies to which councils must have regard 4
Statutory guidance Working with small group of local authorities to develop statutory guidance Guidance likely to say: 5 year tenancies the norm Less than 5 years in exceptional circumstances Longer than 5 years for tenants with longer term needs (eg older people and those with disabilities)
Existing lifetime tenants If remain in home or required to move home will retain security of tenure If choose to move, may be given a further lifetime tenancy in circumstances to be prescribed in affirmative regulations expect it will include, eg, tenants downsizing or moving for work, and those escaping violence or abuse If apply to swap with fixed term tenant, may be given a further lifetime tenancy Housing associations have discretion for councils will be set out in the regulations
Review 6/9 months before end of tenancy Decide whether to grant new tenancy in same or different dwelling, or to terminate tenancy If decide to terminate, must provide advice on buying a home or other housing options Safeguards: must notify decision in writing right to ask council to reconsider if decide to terminate If decision is to offer another tenancy, provided tenant accepts in writing, landlord must grant the tenancy
FTTs other provisions A 5 year fixed term tenancy arises by default Rights of fixed term tenants similar to those of flexible tenants Right to review decision on length of tenancy Right to terminate with four weeks notice No right to improve or be compensated Councils continue to use introductory tenancies, demoted tenancies and family intervention tenancies 8
Schedule 8 amends the Housing Act 1985 to: Bring the position before and after April 2012 into line Ensure that only spouses, civil partners and common law partners can succeed - automatically - to a lifetime tenancy Other family members cannot inherit a lifetime tenancy If they qualify to succeed, they get a 5 year fixed term tenancy. Succession
Housing associations and existing flexible tenants Provisions on reviewing, renewing and terminating tenancies will apply to existing flexible tenancies unless less than 9 months left to run Most of the provisions do not apply to housing associations to avoid exerting control
Secure tenancies and succession Next Steps Regulations to determine whether existing lifetime tenants may get further lifetime tenancy Guidance on length of tenancies, end of tenancy review, and succession Working group of local authorities to assist develop the regulations and guidance Commencement by order 11
Flexible Tenancies To ensure tenants have the right home for as long as they need it Martin Whitelegg Senior Neighbourhood Officer Shropshire Towns and Rural Housing
Shropshire Towns and Rural Housing ALMO created April 2013 10 year management agreement Manage the retained housing stock of Shropshire Council Large geographic area 3197 sq km (1234 sq miles) Population 306,000 (2011 census) Bridgnorth (South East) and Oswestry (North West) 4200 tenants and leaseholders Houses, Bungalows, Flats, Sheltered schemes 2 x Neighbourhood Offices (40 miles apart) Head Office Shrewsbury
Background Grant Shapps Housing minister report 2010 For far too long in this country there has been a lazy consensus about the use of social housing, which has left one of our most valuable resources trapped in a system that helps far fewer people than it should. This out-of-date approach has seen waiting lists rocket and is unfair to people who genuinely need social homes. They trap existing tenants in poverty, often in homes that aren t suitable for them.
Drivers for change flexible tenancies, fairer allocations greater mobility fairer provision for homeless affordable rents tenants powers of scrutiny Localism Act 2011
Drivers for change New Regulator Homes & Communities Agency April 2012 New regulatory standards Encouraged providers to reconsider tenancy for life Encouragement for fixed term tenancies Introduction of Affordable rents Slow progress on roll out of fixed term tenancies by landlords
Drivers for change Dec 2015 Proposed amendment to Housing and Planning Bill Local government minister Marcus Jones Only 8% of social housing in 2014-15 fixed term tenancies 236,000 social tenants are forced to live in overcrowded conditions due to the lack of suitably sized properties 380,000 households occupy social housing with two or more spare bedrooms continuing to offer social tenancies on a lifetime basis is not an efficient use of scarce social housing The new clauses will significantly improve landlords ability to get the best use out of social housing
The STAR position Participation in Direct payment pilot identified large number of properties under occupied Occupants elderly secure tenancies unaffected by changes in benefits Secure tenancies not allowing us to make best use of stock Position unchanged in future if we continued Central government wind of change Political will from council to support provided in line with their Shropshire affordable housing and allocations policy
STAR aims and principles To ensure tenants have the right home for as long as they need it. Making best use of the available social housing stock Reducing overcrowding Tackling under-occupation Making the best use of adapted housing Supporting the development of sustainable communities Increasing tenant mobility
The Star Approach Consultation with Council to ensure meeting tenancy strategy of Council Need to flex their strategy Consultation and presentations to tenants and tenant groups Consultation with Homeless team and other stakeholders Considerations of effect if tenancies ended after 5 years Consultation and feedback with staff Logic for approach explained to gain support Limited to 50% of stock Only to apply to new lettings from 1 st April 2015 Exclusions from Flexible tenancies agreed
The STAR approach Scoping of work in house Realisation of need for expert advice Engagement of consultants (HQN) In house drafting of Policy, Procedure, tenancy agreement Review paperwork, offer letters and associated templates Reviewed / amended and checked for legality, E & D compliance etc. by HQN Tenancy agreement an evolution of our existing secure tenancy agreement
The Tenancy 5 year flexible tenancy 1 year introductory period 6 years in total 9 month new tenant visit Desk top review before end of year 1 If all in order Move to 5 year flexible tenancy Review 8 months before end of tenancy Decision to serve notice to end or offer further flexible tenancy
Exclusions tenants aged 55 or over, who will be living in appropriate accommodation (Bungalow not under occupied) Living in specialist supported accommodation sheltered, supported or extra care homes Tenants with an unrecoverable illness, disability, severe learning disability or severe and enduring mental health problems, which means that their circumstances are unlikely to change during the length of the tenancy. All existing tenants who have a secure tenancy not affected.
The nuts and bolts Comprehensive set of policies and procedures Adverts include type of tenancy offered rent being offered (affordable or social) conditions of the offer letters include details (secure or fixed term) Type of tenure also explained at viewings, pre-tenancy checks and sign up implications of the type of tenure being offered made clear.
I.T. issues Capita Open Housing In house support team Consultation to ensure correct set up of tenancies Date alerts built into system (12 & 8 months before end) Templates uploaded to test system Staff training on new system
Lettings considerations Properties advertised on choice based lettings system as Flexible 5 year fixed tenancy Properties still receiving a similar number of bids No negative perception by applicants of tenancy type No increase in void times / turnaround times Increase in staff time for administration Establishment of specialist lettings team to administer (using existing staff) Increase in time spent pre-tenancy and at sign up explaining process
So far, so good Since 1 st April 2015 over 200 flexible tenancies commenced 80 have become fixed term secure 41 terminations (including internal transfers) 0 evictions 12 month review undertaken 2016 First 5 year review dates due 2020 Alerts for end of tenancy reviews built into IT system Tenants circumstances unchanged offer a further 5 year fixed term or end the tenancy
When tenancy will be ended Property is no longer appropriate due to size etc. and an alternative property is being offered Tenant will not accept the terms of the new tenancy offered. Tenancy agreement requirement/s no longer being met The law / planning conditions require the tenancy to be terminated Serious or persistent breaches of the tenancy agreement and a valid ground for possession The tenant s household income is now above 63,000* per annum and we consider is sufficient to enable the tenant to find alternative accommodation
Is this the end Issue a 6 month notice to leave More than 6 months but no longer than 12 months before end Offer advice and assistance to look for alternative accommodation Involvement of the councils housing options team Advice tailored to needs of customer Support and vulnerability considerations taken into account Appeal process built in for tenants Independent panel of Shropshire Council members to hear appeals not involved in any prior decision making
This is the end, any Questions? Martin Whitelegg 01746 335308 Martin.whitelegg@starhousing.org.uk
Approaches to fixed term tenancies David Pipe, Policy & Practice Officer
What I m going to cover Quick recap? Why did government introduce fixed terms? Current levels of take up Why and how are fixed terms actually being used? Some options Some examples What next? Key decisions and how to approach them 32
Recap (i) Fixed terms introduced on a voluntary basis from April 2012 Government s objectives: Make best use of stock Improve mobility Encourage move-on to home ownership Promote localism But landlords given freedom to decide on their own approach 33
Recap (ii) Current take up relatively low Majority of new tenants are still given secure/assured tenancies Some in principle opposition and for councils, often a political decision Fixed terms more commonly used in conjunction with affordable rent 34
How are fixed terms being used? Different landlords are using fixed term tenancies for different purposes Objective Reduce under-occupation Encourage move-on to other tenures Encourage take-up of support services Tackle breaches of tenancy Maximise rental income (in conjunction with affordable rent) Example renewal criteria Property still appropriate size? Income test Willingness to engage with support on offer Ongoing ASB or rent arrears? Presumption in favour of renewal, but rebase rent against the market 35
Some examples Barnsley Council use fixed terms specifically for those with support needs, and for high demand properties Dartford Borough Council review savings and income at the end of a tenancy. Don t renew where household is able to access other tenures Yarlington Housing Group develop personalised housing ambition plans with individual tenants 36
What next some decisions You have considerable freedom to shape your own approach Will need to make strategic decisions first What do you want to achieve? Then make operational decisions How long should terms be? What are your renewal criteria? Any exceptions 37
Thanks for listening David Pipe Policy and Practice Officer, CIH Email: David.pipe@cih.org Twitter: @DavidPipeCIH 38
Promoting Mobility in Social Housing Ann Bennett Head of Neighbourhood Services Put our customers first, be forward thinking and pursue opportunities for growth
What I am going to cover Background information about Solihull Community Housing How did we develop our Tenancy Policy Lessons learned from implementing the Tenancy Policy Has the Tenancy Policy been a success Some unexpected outcomes Put our customers first, be forward thinking and pursue opportunities for growth
A bit of background Solihull Community Housing was established in 2004 Solihull is a Borough of contrasting needs We manage 10,054 properties on behalf of the Council & we have 1163 leaseholders We have 37 high rise blocks all located within a 3 mile radius of each other & 750 low rise blocks 65% of our stock are flats, maisonettes & bungalows We have 8,656 people on the housing register We do have an increasing number of difficult to let properties Put our customers first, be forward thinking and pursue opportunities for growth
A bit more background We provide a full range of housing management services including a cross tenure ASB service We also manage the housing register & CBL on behalf of the Council We provide the homelessness service on behalf of the Council We have our own DLO for day to day repairs & voids We currently have 285 members of staff We are a Conservative controlled Local Authority Put our customers first, be forward thinking and pursue opportunities for growth
Developing our Tenancy Policy (1) Following extensive consultation with social landlords (including SCH) and other stakeholders, the Council published its first Tenancy Strategy (2013-2018) in December 2012. The objectives of this strategy were to:- Make best use of social housing in Solihull Support tenancy sustainment, maintaining and promoting sustainable communities Promote mobility in social housing Help people into sustainable home ownership or other tenure arrangements Put our customers first, be forward thinking and pursue opportunities for growth
Developing our Tenancy Policy (2) The Tenancy Strategy also outlined how the Council intended to use Fixed Term Flexible' Tenancies to:- Make best use of the available social rented housing, including reducing under-occupation Engaging with people to help them to get advice and assistance in accessing employment and/or education and training Facilitate increased mobility in social housing Help people to periodically review their housing options The Strategy was updated in July 2013 to confirm the Council s intention to start using Introductory Tenancies Put our customers first, be forward thinking and pursue opportunities for growth
Developing our Tenancy Policy (3) SCH worked very closely with the Council to develop the Tenancy Policy Extensive consultation with the Council s Scrutiny Board, the SCH Board and other internal and external stakeholders before the Tenancy Policy was agreed by the Cabinet Member on 27 March 2014 - changes were implemented on 7 April 2014 Main implications were:- All new tenants to have an Introductory Tenancy Most new tenants no longer have a tenancy for life (with some exceptions) All new tenants are given additional support to maintain their tenancy Different succession rights for new tenants Put our customers first, be forward thinking and pursue opportunities for growth
Implementing the Tenancy Policy lessons learned (1) Don t underestimate the time it will take to get your Tenancy Policy agreed and implemented we did! Make sure you spend sufficient time on training staff & train them at the right time Take time to train your Board & Elected members & involved tenants it will save time later on Take time to review your staffing resources we established a Tenancy Sustainment Team Put our customers first, be forward thinking and pursue opportunities for growth
Implementing the Tenancy Policy lessons learned (2) Is your IT able to cope with these changes & will it help your staff to manage FTT s effectively Policies and procedures are important but so is good legal advice Don t make your Tenancy Policy over complicated this may not be an issue if the statutory guidance is very prescriptive Put our customers first, be forward thinking and pursue opportunities for growth
Has the Tenancy Policy been a success? In terms of Tenancy Sustainment yes, since we went live we have created 1599 new tenancies and of these 93% have been sustained this is the major benefit for us In terms of helping people to access employment and/or training difficult to say as welfare reforms have also impacted Making best use of social rented housing & reducing under occupation bedroom tax has had more of an impact Increasing social mobility & reviewing housing options too soon to assess as first tranche of 2 year FTT s don t end until April 2017 & what choices do our tenants really have? Put our customers first, be forward thinking and pursue opportunities for growth
Some unexpected outcomes We expected lots of review requests we haven t received any The Council did still want to offer lifetime tenancies to some new tenants Creating a Tenancy Sustainment Team has had a positive impact on other parts of our business Anecdotal feedback that Introductory & FTT s has improved the behaviour of some tenants Put our customers first, be forward thinking and pursue opportunities for growth
Any Questions? ann.bennett@solihullcommunityhousing.org.uk Put our customers first, be forward thinking and pursue opportunities for growth
Making best use of housing resources Sacha Jevans Executive Director of Operations. Kensington and Chelsea TMO Rob Shaw Special Projects Lead Royal Borough of Kensington and Chelsea
History Localism Act 2012 enabled LA s to grant Flexible tenancies from April 12 Requirement to publish a tenancy strategy by 15 Jan 2013 RBKC went live with flexible tenancies from 15 Jan 2013 KCTMO fixed-term tenancy procedure Jan 13 linked to RBKC tenancy policy 2 or 5 year fixed-term tenancies offered
Kensington and Chelsea: housing context Population 158,649 (2011 Census) Tenure mix owner-occupation 37% private rent 38% social housing 24% KCTMO 37% of social housing stock in K&C average tenancy length was 17 years annual stock turn-over around 2.4%
Housing Need January 2013 over 8000 on the housing register 1300 households in t/a Now 2754 on the housing register 1900 households in t/a 8 th largest homeless applications 4 th largest number in t/a 243 rd largest homelessness prevention or relief
Demand and Supply Demand Supply 2011/12 2306 556 2012/13 2574 470 Year 2013/14 2568 434 2014/15 2461 502 2015/16 2601 460 Average 2011 to 2016 2502 484
Under-supply of homes Last five years 23% over-supply studio and 1 beds 18% under-supply 2 beds 5% under-supply 3 beds 3% under-supply 4 beds
Why is this important? Given: extremely high costs of market sale and market rents lack of opportunity to build (and restrictions on doing so) impact of welfare reform Existing social housing stock plays a crucial role in meeting housing need in Kensington and Chelsea
Why was it implemented? Tenancy Strategy: 1. Tackling local housing need 2. Ensuring appropriate use of tenancies and tenancy options 3. Promoting affordable housing options 4. Promoting mobility and reducing under-occupation and overcrowding 5. Supporting and incentivising work and training
Flexible Tenancy Terms Grant 5 year tenancies unless: existing secure tenant or assured social housing tenant whose tenancy was issued before 05 January 2014 property is covered by an existing contractual requirement to be let on a particular type of tenancy (eg planning obligation). temporary accommodation (non-secure tenancy issued)
Exceptional circs: 2 year tenancy at start tenants leaving temporary accommodation in arrears but a) less than 8 weeks b) payment plan tenants with arrears from a previous tenancy where a) less than 8 weeks b) payment plan Exceptional circs: 2 year tenancy at the end of the fixed term tenants with arrears on their existing Flexible Tenancy where a) less than 8 weeks b) payment plan tenants granted a renewal of their tenancy under the exceptional circumstances (otherwise the tenancy would not be renewed)
Tenancies will not be reissued where: A) Income and savings gross total income of the tenant and spouse/ partner is above: 50,000 studio, one or two bedroom property 65,000 three or more bedrooms. tenant or partner/ spouse have a legal interest in another property (including property abroad) tenant or partner /spouse have savings / investments which exceed 25,000
B) Conduct of tenancy serious breach of the tenancy which includes: arrears 8 weeks or more and there is no payment plan in place or the payment plan is not being kept to; ASB resulting in an Order or criminal conviction at / in / near locality of property or RBKC 12 months has not passed without further breach possession order, including a suspended order in force property has been used for illegal purposes, benefit fraud or unlawful subletting, or the tenancy was induced by a false statement made by or on behalf of the tenant
C) Suitability of property Tenancies will be reissued where the property remains suitable for the household s needs Tenancies will be reissued to: Overcrowded households by one bedroom (MX) Overcrowded households by two or more bedrooms (HR, MX) Households living in an inaccessible or medically unsuitable property (HR) Tenancies may not be reissued to: Under-occupiers (HR including direct offer, MX) Tenants in an accessible property but do not require it (HR including direct offer, MX)
Appeals Flexible Tenancies (Review Procedures) Regulations 2012. Two types of review: 1) Appeals about the length of the fixed term tenancy That the decision is not in line with the LA s Tenancy Policy 2) Appeal about the decision not to reissue a tenancy That the decision is not in line with the Tenancy Policy
Impact on Allocations No impact on number of lettings (CBL or direct) Impact on administration identifying the right tenancy (and introductory?) `what will happen at the end of the tenancy? lifetime to fixed term Affordable Rent Improved verification process Benefits of training!
The detail A good time to review your tenancy agreement flooring, pets Communication Board, Councillors, current tenants and RA s Sign-up issuing relevant notices Introductory then fixed term (Section 137A HA 96) Straight fixed term (Section 107A HA 85) Amending IT systems and relevant processes (Notices for arrears, ASB ensure you are stating the right acts) Building processes for annual reviews and end of fixed-term review
Lessons learnt so far Really important to get the timescales right Better review of Intro tenants at 9 months. Easier to obtain possession for any breaches at this stage. Demoting or extending the intro period for a further 6 months? Ensure annual reviews are completed. Build in reminders for staff and reporting for Managers. New checks around income and savings which haven t been asked before. Start the review process early beginning of the 4 th year for a 5 year tenancy (see document for criteria)
Lessons learnt so far Fraud checks useful to review SLA s with any fraud investigators to ensure timescales are met and FTT checks are covered. Non-access during review. Assume non-renewal but documentation really important if challenged. If not renewed, notices need to be served 6 months before the tenancy is due to end. Get your timings right! If renewed, sign-up should also take place for the new tenancy 6 months before tenancy end. Why if the tenant delays/refuses signing the new tenancy, timescales for serving a notice has passed and they may become a secure periodic!
Are Flexible Tenancies Working? The original objectives: better focus on un-met housing need stepping stone to ownership or shared ownership better use of existing stock protecting the most vulnerable promoting work and training Too early to say sorry!
How have FTT s helped Gives us more bite when dealing with breaches of tenancy increase risk of tenants loosing their home More structured way to manage tenancies Opens up discussions with tenants around their housing choices mutual exchange, downsizing Note review your mutual exchange processes also. Type of tenancy is retained so watch length of tenancy remaining for exchanging tenants
Maybe not all positive Does introduce a further complexity and Officers really need to understand which notices need to be served and closely monitor timescales Generally haven t seen much mobility currently going through some reviews and likelihood is majority of tenancy will be renewed Increased risk to create secure periodic tenancy if any of the process goes wrong Risk of granting the wrong tenancy at the start
Plans for the future Very uncertain and worrying policy context: Higher Value Voids (delayed) extension of Right to Buy (delayed) Pay to Stay (might be delayed) Limits on delivery HRA borrowing cap, RTB receipts Increased focus on Intermediate Rent Market sale, not market rent?