Local Services Scrutiny Committee

4 December 2012

Draft Tenancy Strategy

Statutory duty under Localism Act 2011 Section 150

• Tenancy Strategy should be in place by 14 January 2013

• It should set out the Council’s position on Flexible Tenancies and Affordable Rent

Flexible Tenancies

• Council currently issues secure tenancies – a tenancy for life which can only be ended by the tenant giving notice or by a court order.

• A flexible tenancy is a tenancy set for a fixed period and as the period draws to a close the tenant’s circumstances are reviewed.

Affordable Rents

• Rents are currently set according to the rent restructuring formula introduced in 2001. They are approximately 40-45% of market rents.

• Affordable rents will be set on designated (not all) properties at up to 80% of market rent.

• The difference should be allocated to supporting the development of new housing

Current Demand for Housing

Significant local demand for affordable housing i.e.

• November 2012 – 1186 households on waiting list

• 882 homeseekers (not currently a Council or HA tenant in the district)

• 304 are tenants waiting for a transfer

Aims of Tenancy Strategy

1. Clearly set out our expectations of our housing management service and that of registered providers who supply and manage social housing

2. Make best use of social housing stock

3. Prevent homelessness and make sure housing is affordable to those in greatest housing need

4. Improve choice and provide clearer information to the community

5. Support the corporate vision in contributing to a high quality of life and protecting the vulnerable

6. Offer tenancies which meet our aims and deal with the needs of individual households

7. Fulfil our duties under the Localism Act 2011

Flexible Tenancies

• These only apply to new tenants (not existing Council or HA tenants) except if they transfer to a property let at an affordable rent.

• They are for a fixed term – minimum 2 years, the initial tenancy will also have a 1 year introductory period.

• The tenant’s circumstances will be reviewed in the final year and a decision made as to whether the tenancy will be reviewed.

Locally the decision will be based on the Allocations Policy

Types of tenancy and qualifying criteria

• Lifetime tenancy

– All existing tenants who transfer except if they transfer to a property let at an affordable rent.

– All new tenants moving into sheltered housing or elderly designated bungalows

Types of tenancy and qualifying criteria

• 2 year tenancy

– A tenant who is to be housed having been evicted by the Council or a registered provider in the last 10 years.

– Renewal of an existing 5 year flexible tenancy where the terms have been breached by the tenant is taking consistent action to remedy the breach

– Where a property is earmarked for demolition or disposal

Types of tenancy and qualifying criteria

• 5 year tenancy

– The default tenancy for all tenants who do not hold a current Council or HA tenancy

– An existing lifetime tenant on transfer to a property let at an affordable rent

What happens when a flexible tenancy comes to an end?

• The tenant will be told 12 months before their tenancy is due for review

• If we decide not to renew their existing tenancy they must be given 6 months notice

• If they met the criteria to have their tenancy renewed then they will be offered:-– a new flexible tenancy for 2 or 5 years depending upon the

criteria in the previous slide– a tenancy at an alternative property if they are

underoccupying

Criteria for consideration when reviewing a tenancy

• Is the tenant underoccupying by 1 bedroom or more?

• Is the income of the named tenant(s) above the level at which we would accept them on the housing register?

• Is there a current breach of the terms of the tenancy or a valid court order against the tenancy?

Income criteria 2012-2013

• One bedroom property - £31,700• Two bedroom property - £36,700• Three bedroom property - £46,000• Four bedroom property - £59,500This will be based on earned and unearned income and will be increased each year in line with the increase in CPI in the preceding September (2.2% September 2012)

Affordable Rent

• At present the Council has no plans to let properties at affordable rent levels

• Local providers who have a development programme do plan to use affordable rents

• Properties may be let up to 80% of market rents

Considerations by landlords planning to use affordable rents

• Take into consideration the introduction of Universal Credit and the impact of the benefit cap

• In respect of new development on current council owned land, priority will be given to those planning to use existing social rents or rent at up to 60% of market rents

• Properties with extensive adaptations should not be let at affordable rents

• Properties of 4 bedrooms should be let at a rent no more than 15% higher than the affordable rent for a 3 bedroom property

• Where affordable rents are used the funds should be prioritised for new development within the district

Review

• The tenancy strategy will be reviewed after 12 months taking into account feedback on the existing strategy and corporate practices