Agenda item

Wendy Foster (Social Housing Officer), Sarah Watts (Housing Intelligence Officer) and Sandra Tolley (Housing Options Manager) gave the following powerpoint presentation:-

 

Fixed Term Tenancies

 

Localism Act 2011	Housing and Planning Act 2016
Landlord’s discretion	Compulsory for local authorities
2 years in exceptional circumstances	Discretionary for Housing Associations
5 years the ‘norm’	2-5 years unless:- Tenants forced to move Someone with disability or long term illness Families with children under
No upper limit

 

Benefits

For landlords	For tenants
Make better use of social housing stock	Greater independence
More flexibility with properties	Support tenants to achieve aspirations
Support housing management	Minimise under-occupancy/fuel poverty
	Receive increased support

 

Affects for existing tenants

Existing tenants who move through choice are likely to be issued a fixed term tenancy:	Existing tenants are likely to keep their periodic tenancies if they are:
Mutual exchanges Non-statutory successions Transfers	Fleeing domestic abuse Forced to move through regeneration Full-time carers Severely disabled or have mobility/care needs

 

Concerns raised throughout the consultation programme

-          Residents, Elected Members and Officers all expressed concerns around the blanket issuing of Fixed Term Tenancies (FTT) undermining the long term sustainability of communities

 

The Council’s Approach

-          The Council aims to balance the need to support settled, sustainable communities with the need to make best use of its stock and house residents in the greatest housing need by:-

Issuing tenancies for the maximum ‘usual’ term of 5 years

Ensuring tenants are aware of how their behaviour could impact on the renewal of the tenancy on sign-up

-          All tenancies will be reviewed and the Council will seek to offer a further 5 year tenancy in the same property for the vast majority of tenants

 

Tenancies will not be renewed where

-          The Council will allow fixed term tenancies to come to an end where there have been serious breaches of the Tenancy Agreement leading to a Notice Seeking Possession (NSP) being active at the point of review:

NSPs are usually served for rent arrears or anti-social behaviour

Notices are active for a period of 12 months

Currently 1,149 (5.7%) RMBC tenants with an active Notice Seeking Possession

 

A tenancy for a different property will be issued where:-

-          A further 5 year fixed term tenancy for another, more suitable property will be offered where:-

The property is adapted, the adaptations are no longer needed but are likely to be helpful to another family

The household is overcrowded

The household is under-occupying a 4+ bedroomed house

 

Discussion and Feedback

-          Is issuing fixed term tenancies for the highest (normal) 5 year term the right approach for RMBC?

-          Is the proposed approach to renewals right?

(a)  Allowing tenancies to expire where there is an active Notice Seeking Possession

(b)  Offering alternative properties where tenants are significantly under-occupying, are over-crowded or no longer need an adapted property

(c)  Issuing a further 5 year tenancy if (a) and (b) do not apply

 

Fixed Term Tenancies in Rotherham

-          RMBC opted to introduce fixed term tenancies in 2013 to tackle under-occupancy and fuel poverty and make better use of its larger (4+ bedroomed) homes

 

	2013	2015
Number of properties with just 1 occupancy (262 properties)	117	82
% of 4+ homes under-occupied	45%	38%
Number of/% of fixed term tenancies issued		34 10%

 

Discussion ensued with the following issues raised/clarified:-

 

-          The Housing Bill had received Royal Assent in May 2016.

 

-          Issuing FTT was not the right approach but the Local Authority had no choice. 

 

-          Is issuing fixed term tenancies for the highest (normal) 5 year term the right approach for RMBC?

·           The maximum FTT should be for 5 years - any less and tenants would feel it was not worth decorating, create a community etc.

·           It was not thought that automatic renewal would be allowed.

·           Tenants feeling it was not worth investing in their property would have a knock-on cost to the Authority

 

-          Is the proposed approach to renewals right

·           If a tenant had an active Notice Seeking Possession (NSP) they had contravened their Tenancy Agreement.  However, if a tenant received a NSP mid-way through their tenancy but there was nothing further for a year it would be removed; if it was received in the last 6 months of the 5 years tenancy they would be penalised. 

·           It would increase the number of people in private tenancies.

·           NSPs should continue to be used as it gave an opportunity to manage the behaviour of tenants in a less resource intensive way. 

·           It was hoped that a full explanation on sign up of the implications of non-compliance with the Tenancy Agreement would help with sustainability

·           Consideration was required as to what point a NSP broke a 5 year tenancy and clear criteria for officers. 

·           Tenants should not be moved from their property due to under occupancy, particularly elderly tenants.  Work should take place on persuading them to move into more suitable accommodation.

 

-          The Authority did not tend to use Demoted tenancies.  An application had to be made to Court and it was almost a first step to seeking possession but giving the tenant a chance to pull the tenancy back.

 

-          A detailed Tenancy Policy would be written once the Regulations were published. Current tenants would not receive a copy of the Tenancy Policy as existing tenants would not be affected by the changes unless they applied for a mutual exchange/transfer.  There would be 1 Tenancy Agreement even though it would not apply in full to all tenants.

 

-          Currently it could only be assumed that the appeal process would be the same as it was for flexible tenancies for 4+ bedroom properties i.e. tenants could appeal when they were first offered a tenancy, the term of tenancy but not the kind of tenancy and if it did not accord with Policy.  They could appeal when the review was carried out and had the outcome thereof.  It was envisaged that the Area Housing Officers would visit look at the tenancy and make a decision; it would then be passed to their Senior Officer.  If there was an appeal it would be considered by Housing and Estates Manager or equivalent who had the knowledge but not directly involved in making the decision.  Customers had been given the information upfront and knew how long their tenancy was for.   There had been no appeals as yet as the tenancies were not due to end until 2027.

 

-          Under the Localism Act the Authority had tightened up on statutory successions and within the Policy there was the discretion to manage successions.  However, it was not known whether there would be that discretion within the new Regulations.  The new Tenancy Agreement had also included successions and additional family members to succeed but had been put on hold pending the Regulations. 

 

-          It was important that the Council tried to get the balance with regard to under occupancy and was difficult for both the tenant and for the Department to approach the subject.  Through fixed term tenancies it opened up communication between the Department and tenants so it could be addressed sensitively. 

 

-          The mandatory FTT was for new tenants and not existing tenants.  Downsizing was being addressed with existing tenants in a sensitive manner.  FTT tenants would be made aware from the start that the tenancy was issued for a fixed period and work with them through the reviews and verification period to identify at what point in their lives they would need more suitable housing.  At the end of the 5 year period a review would take place and, if the property was still deemed as suitable and there had been no tenancy issues, they would stay.  If a property was no longer suitable there was the Choice Based Letting process and they would be helped to find a property through the Allocations Policy.  The proposals included anyone who had mobility needs who would retain a life time tenancy upon moving in.   

 

-          The Government had mooted that families with children under the age of 9 would get a tenancy for up to 10 years so that the child(ren) could stay in secondary education.  They had also mooted carers and pensioners may be given life time tenancies. 

 

-          Proposal that it be mandatory for all new tenants to attend a tenancy workshop and have a housing options interview before they joined the housing register to emphasise the expectations around a FTT.

 

-          There was to be a Financial Inclusion Team and Tenancy Support team with the emphasis on supporting tenants rather than the enforcement role.

 

-          It was important to balance the time cost implications as well as reviewing a tenancy.  A number of new tenancies were issued that required a review before the 5 year period ended which was resource intensive.  2 years was a short period tenancy and would translate into higher number of voids and associated costs of re-letting properties.   The Service would not wait until the end of the 5 years to take action against anyone undertaking anti-social behaviour or not paying rent. 

 

-          Letting and sub-letting were addressed through the tenancy verification process.

 

-          A new tenant would be issued with an Introductory Tenancy, usually for 12 months, and then a 4 years MFTT – a total tenancy term of 5 years so giving parity with existing tenants. 

 

-          Clear links with Key Choices and the Choice Based Lettings Policy would be ensured so that tenants did not feel they were being forced into particular areas.  It was hoped that implementation of the Policies would make better use of the existing stock. 

 

-          There was a likelihood that the introduction of MFTT might lead to an increase in the number of Right to Buys given that the qualification period had reduced from 5 years to 3.  

 

Resolved:-  (1)  That the report be noted.

 

(2)  That once issued, the Regulations and the Tenancy Policy be submitted to the Select Commission.