Tenure Reform

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The Case for Housing Reform

Waiting Lists• 1.8m Households on waiting lists• Approx. 50,000 households in temporary accommodation

Overcrowding• 250,000 social homes are overcrowded• 400,000 social homes are underoccupied

Mobility• Fewer than 5% of social sector households move within the social sector each year compared to almost 25% of private renters

Employment• Fewer than half of social tenants of working age are in employment

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Housing Reform – the Guiding Principles

• “LOCALISM, LOCALISM, LOCALISM”

• FLEXIBILITY

• FOCUSING SUPPORT WHERE IT’S NEEDED MOST

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From Principles to PolicyThe Headlines

FIXED-TERM TENANCIES

TENANCY STRATEGIES

TENANCY STANDARD

SUCCESSION

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The Changes Fixed-term tenancies

TERMINOLOGY• LA FIXED-TERM = FLEXIBLE

• PRP FIXED-TERM = ASSURED SHORTHOLD TENANCY

• REISSUE, NOT RENEWAL

MINIMUM LENGTH• WHAT DOES ‘2 YEAR MINIMUM TERM’ ACTUALLY MEAN?

• OPTIONAL EXTRA - CAN USE FIXED TERMS FOR ALL, SOME OR NO NEW TENANCIES

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The Changes Tenancy Strategies

What?• High-level document• Set out broad housing objectives, not the detail• No specified format

Who?• Every Local Housing Authority• LAs must consult PRPs

Why?1. Transparency2. Encourage a coherent approach within an area

When?Up to 12 months from commencement

Relationship between LAs and PRPs• What does “Have regard to” actually mean?

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The Changes Tenancy Standard

SoS can already direct the regulator on:• Rent;• Quality of Accommodation; and• Tenant Involvement

Localism Bill will give new powers to direct on:• Mutual exchange; and• Tenure – will start consultation in late Spring/early Summer

• Direction to take effect in April 2012 (subject to parliamentary approval)

• Result will be reduced regulation and increased flexibility

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The Changes Succession

1. Equalisation of rights Secure/Assured (all future tenants)

2. Removal of ‘one succession only’ constraint

3. Express term in the tenancy agreement

4. Flexibility for landlord – additional review point

5. Certainty for those living with tenant before they move in

6. Individual agreements to cater for individual requirements

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Consultation responses

Consultation:http://www.communities.gov.uk/publications/housing/socialhousingreform

Summary of Responses to Consultation:http://www.communities.gov.uk/publications/housing/localdecisionsresponse

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Myths

• End of lifetime tenancies

• Every fixed-term tenancy will have to be 2 years

• Tenants finding work must be evicted

• LAs can prevent housing associations from using fixed-term tenancies

• Changes will affect existing tenants