Local Services Scrutiny Committee

1. Local Services Scrutiny Committee 4 December 2012

2. Draft Tenancy Strategy

3. 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

4. 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.

5. 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

6. 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

7. Aims of Tenancy Strategy • Clearly set out our expectations of our housing management service and that of registered providers who supply and manage social housing • Make best use of social housing stock • Prevent homelessness and make sure housing is affordable to those in greatest housing need

8. Improve choice and provide clearer information to the community • Support the corporate vision in contributing to a high quality of life and protecting the vulnerable • Offer tenancies which meet our aims and deal with the needs of individual households • Fulfil our duties under the Localism Act 2011

9. 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.

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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?

16. Income criteria 2012-2013 • One bedroom property - £31,700 • Two bedroom property - £36,700 • Three bedroom property - £46,000 • Four bedroom property - £59,500 This 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)

17. 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

18. 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

19. 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

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