Joint Tenancy Strategy 2012 to 2015

The government has indicated that it regards social housing as a step towards other types of housing rather than a destination and has identified a number of perceived problems that it seeks to address, including:

• social housing as a scarce resource which needs to be used more effectively
• life-time tenancies take no account of how a households circumstances may change
• high levels of unemployment within the social rented sector with little incentive for tenants to gain employment
• poor public perception of social housing
• lack of public funding to increase the supply new social housing

Its programme of social housing reform has four main aims:

• to make the system fairer, striking a balance between the needs of new and existing tenants
• to enable decisions about who lives where and for how long to be taken on the basis of local need and circumstances
• to create a housing system which is better focussed on need; providing protection and support for those who need it most, for the period they are in need
• to shift the public perception of social housing to being a springboard into work and self sufficiency

In seeking to address these aims the government has:

• introduced fixed term tenancies for social housing
• placed a duty on local authorities to publish a tenancy strategy
• given local authorities greater control of their waiting list
• enabled authorities to discharge their homelessness duty though accommodating a household with a year-long tenancy in the private rented sector
• encouraged social landlords to improve existing tenants’ opportunities to move home

Each of the local authorities party to this Tenancy Strategy have their own Housing Strategy which evaluates housing needs in their areas and promotes a range of responses to address these needs. This strategy needs to be viewed in conjunction with these key local documents.

The regulatory framework for Social Housing in England from April 2012” requires that,

“registered providers let their homes in a fair, transparent and efficient way, taking into account the housing needs and aspirations of tenants and potential tenants. They also need to demonstrate how their lettings:

• make the best use of available housing
• are compatible with the purpose of the housing
• contribute to local authorities’ strategic housing function and sustainable communities

There should be clear application, decision-making and appeals processes.”

In addition, Registered Providers must publish clear and accessible policies which outline their approach to tenancy management, including interventions to sustain tenancies and prevent unnecessary evictions, and tackling tenancy fraud.

We also recognise that the wider programme of welfare reform will potentially have a major impact on affordability, particularly for low income households. While a number of changes have already come into force, many will not come into effect until April 2013.

Furthermore, October 2013 will see the gradual phasing in of Universal Credit through which housing benefit and a number of other means tested benefits will be made into a single payment paid directly to tenants.

Any views expressed in this strategy relating to affordable rent levels will therefore need to be reviewed in the light of the full impact of these changes. We will expect this to form a structured part of any annual review process.

Our aims through the development of this strategy is that in conjunction with the wider measures contained in local Housing Strategies, we will:

• ensure that affordable housing meets locally identifiable housing need
• provide guidance and direction to Registered Providers regarding their use of Affordable Rent properties, fixed term and disposals
• indicate to existing and prospective tenants what they can expect from an Affordable Rent tenancy
• sustain provision of new affordable housing at a time of limited public investment
• help Registered Providers increase revenue income for future investment and delivery of affordable housing

This strategy has been developed in consultation with the seven authorities and senior representatives of Poole Housing Partnership together with Registered Providers with the largest stock holdings in the area.

However, we recognise the need to further review some key aspects of our operations to reflect the content of the Localism Act. These include:

Dorset Home Choice

The allocations policy shared by Poole, North Dorset District Council, Purbeck District Council, West Dorset District Council; and Weymouth and Portland Borough Council.

This was implemented in April 2012 and will be reviewed during 2013 to take into account the changes associated with the Localism Act and the results of recent government guidance. 

Christchurch and East Dorset Council will also be reviewing their allocations policies during 2013 following the implementation and review of a shared service.

The Homelessness Strategy

This is shared by all the authorities except Poole and will be reviewed in 2013.

Poole is in the process of developing a new housing strategy which will include a homelessness chapter.

This will also be reviewed in 2013.

The Localism Act gives local authorities a new power to end the duty to homeless households to whom they owe a statutory duty through an offer of accommodation in the private sector.

Applicant consent will no longer be required. Our full response to the power will form part of the homelessness strategy reviews, however in the interim we propose to exercise the power when appropriate.

The final version of this strategy will be placed on Dorset For You, Dorset Home Choice and the Borough of Poole’s website. Hard copies will be available on request.

Although covering the period 2012 -2015 the strategy will be reviewed annually with registered provider input.

The Dorset Housing Services Group will work closely to continue to monitor the implementation of the Tenancy Strategy and ensure we address any unintended consequences promptly and effectively.

This strategy provides an overview of how we will address the issues of rent and tenure reform, the homelessness duty and the use of the private rented sector and changes to the housing register.

The strategy does not advise on rent setting. With the exception of issues relating to the termination of fixed term tenancies it does not consider tenancy management.

Dorset is an attractive but expensive place to live, with the result that open market residential accommodation is unaffordable for many households.

The 2011 Strategic Housing Market Analysis for Weymouth & Portland and West Dorset (WP/WD) indicated that around 25% of households cannot afford housing at current market prices/rents without the need for some form of subsidy.

This number rises to 26% in the Poole and Bournemouth HMA. In both HMAs, the opportunity for accessing affordable homes is extremely limited, with only 10% of homes in Bournemouth and Poole being affordable and 14% in WP/WD.

The net annual need for additional units of affordable housing per annum if all needs are to be met for each of the Dorset authorities over the next five years is indicated below.

Our current experience is that these levels of need are unlikely to be satisfied. For all the authorities involved in this strategy the provision of affordable housing is a top priority, but in recent years the total number of affordable homes built has fallen well below the number needed.

The development of new homes has dropped significantly and the erosion of social housing grant is likely to perpetuate this. In 2009/10 HCA funding provided 455 new homes in the local authorities covered by this strategy.

In 2011/12 the figure was 268 

The impact of this affordability gap is reflected in the number of households on our Housing Registers as at October 2012.

The main housing issues and challenges within the area are:

• the need for more affordable housing
• the high cost of owner occupation and private sector renting
• low wages in comparison to the national average

The 2010 Comprehensive Spending Review introduced Affordable Rent as an alternative to social rent. Before this all rented properties in the affordable housing sector were let at social rents, generally in the region of 50-60% of market rents.

Affordable rents are set at 80% of the market rent locally (inclusive of service charges) for a comparable property.

The tables below highlight the difference between average social rent, market rent and 80% of market rents. In view of the difference in private rental values between the west and east of the county, the tables are divided into east and west.

These figures are averages and in some areas, the difference is likely to be more significant.

For all property types the difference between social rent and affordable rents are considerable and unless supported by housing benefit will be unaffordable for many low income tenants.

Currently, tenants moving into Affordable Rent properties will be eligible for housing benefit. However as referred to earlier, from April 2013 benefits will be capped.

Within the area four Broad Market Rental areas operate – Bournemouth, Dorchester, Yeovil and Salisbury. The weekly Local Housing Allowance levels for these for the period 1 st April 2012 to 31st March 2013 are below.

These rates are the maximum which can be received and suggest that care will need to be taken to ensure 2 and 3 bedroom Affordable Rent properties within the Yeovil Broad Market Rental Area do not exceed the Local Housing Allowance.

Evidence exists that larger households on low incomes are increasingly dependent on affordable housing due to the additional costs of maintaining their family.

For existing social rent tenants the Affordable Rent model may act as a disincentive to move to a different home.

We are concerned that a wholesale movement to affordable rents rather than target rents, coupled with the impact of welfare reform will make access to appropriate housing even harder for many households on low incomes. 

We accept that the Affordable Rent model provides a means of securing new housing and that Registered Providers have already signed contracts with the HCA for the development of new affordable homes. However, there are a number of points we expect providers to consider when developing or updating their policies:

• each local authority expects to benefit from the development opportunities generated in their area from affordable rents and if not for the benefits to remain with the authorities involved in this strategy if development opportunities exist
• on open market sites developed without HCA funding we continue to expect the tenure split to be in accordance with each Council’s affordable planning policy in order to address the continuing need for social rent. If the provision of social rented housing is unviable, we will work with developers and Registered Providers on a site by site basis
• where a new build scheme is being delivered that will include affordable rented units we expect the proposed affordable units and the rent levels to be agreed with the relevant authority
• any social rented properties delivered though a section 106 agreement will require local authority permission to be converted to affordable rent. Under these circumstances the section 106 agreements will be reviewed on a case by case basis to establish if any conversion proposals remain compliant with the section 106 agreement, or if the tenure change is acceptable to the local authority whether a variation is necessary
• where a local authority has provided either land or capital to assist the provision of social rent properties, these will not be converted to affordable rent
• before potential tenants sign their tenancy agreement, Registered Providers should carry out financial assessments of affordability, particularly where rents are at or close to Local Housing Allowance levels
• any financial issues which arise during the tenancy must be addressed at an early stage
• as with social rented properties all affordable rent homes must be allocated through the appropriate allocations policy to ensure fairness and transparency
• Registered Providers are expected to explore with the HCA any Affordable Rent model exemptions as necessary, for example to enable provision of affordable housing in rural parishes where housing costs are high
• to avoid excessively high affordable rents in high value areas the rents charged for affordable rented properties should not exceed the relevant Local Housing Allowance (LHA) rate applicable for that property size at the time of rent setting
• the need to continue to ensure a reasonable supply of family –size accommodation available at social rents
• the need to ensure that properties in rural areas can be let to those working in the area on low wages
• the need to ensure that under-occupiers wishing to downsize are not put off by having to pay a higher rent

We also have particular concerns about access and affordability within:

• high value rural areas which have a limited supply of social housing and other affordable housing
• the future provision of supported housing for vulnerable households under the Affordable Rent model, where service charges can be high

For the main stock holding organisations in he area, details of affordable rent conversions and fixed term tenancies during the current affordable housing programme 2011-2015 are provided in Appendix 1.

The Localism Act allows Registered Providers to let affordable housing on assured shorthold tenancies for a fixed term. Fixed term tenancies are provided for specific periods and can be used for properties let at both social rent and affordable rent.

This is a move away from the current situation, whereby a tenancy with a social housing provider either Council or Housing Association was perceived as a tenancy for life, provided the tenancy conditions were complied with.

The introduction of fixed term tenancies is intended to give greater freedom to housing providers to:

• manage assets for the greatest financial return
• respond to local circumstances and the changing needs of individual households
• promote clarity and fairness
• ensure support focusses on those who need it for as long as they need it

Existing lifetime tenants whose tenancies started before the Localism Act came into force will retain their existing security of tenure if they choose to move to another social rented home, unless it is let at an Affordable Rent.

We recognise that Registered Providers may want to take advantage of the new provisions which enable them to provide fixed term tenancies.

We also acknowledge that the decision to use fixed term tenancies and the length of these tenancies lies with the Registered Provider.

Where Registered Providers issue fixed term tenancies we expect the adoption of the following basic principles as a minimum:

• the fixed term tenancies used should be set at a minimum of five years following a probationary tenancy period, typically six months, in all but exceptional cases
• where a period of less than five years is proposed, we expect providers to discuss this with us at the earliest opportunity
• any “probationary tenancy” period (including any extensions) will be regarded as being in addition to the minimum length of tenancy
• longer fixed term tenancies may be more appropriate for families with dependent school age children attending a local school
• fixed term tenancies should only be used for general needs stock, not sheltered, extra care or supported accommodation
• fixed term tenancies should not be used as an alternative to the usual remedies available to address a tenancy breach
• to help create sustainable communities and prevent areas becoming management problems it may be necessary to use longer fixed term tenancies. This approach may have implications for other providers in the area and we expect providers to discuss their proposals with us at the earliest opportunity
• clear and concise advice and information must be provided to tenants at all stages, with information on the review process - including how a tenant can register a complaint or appeal against tenancy decisions - provided in advance of sign up
• in addition to providing advice on the review process, Registered Providers should also signpost their tenants to independent sources of advice such as the Citizens Advice Bureau and Shelter

We want to ensure these changes do not restrict the mobility of existing tenants living in the social rented sector, particularly households under or over occupying their property.

To encourage mobility and stock turnover, all existing social tenants will retain their existing security of tenure if they choose to move to another property through a mutual exchange.

However, this protection will only apply to tenants who had an assured tenancy on 1 April 2012 and only applies to the type of tenancy – not the rent level.

Where tenants are required to move to a property on Affordable Rent terms, for example as a result of demolition, landlords will be required to provide a tenancy with no less security.

However, under the revised tenancy standard existing tenants who successfully bid for a property let on Affordable Rent terms can be offered a fixed term tenancy. Strategies to reduce under occupation will be looked at separately.

For tenancies entered into after 1 April 2012 the Localism Act has limited succession to spouses or civil partners of the deceased tenant. However, landlords are able to grant additional succession rights under the tenancy agreement.

We expect registered providers to make their policy on succession for all tenancy types and the granting of any additional rights clear and take account of the needs of vulnerable household members.

Within the Localism Act, four options are available to registered providers when granting a tenancy:

• full assured social rent
• full assured affordable
• fixed term social rent
• fixed term affordable rent

For some groups the type of tenancy issued will have more impact.

• we expect registered providers to have a published tenancy policy and for a copy to be available on request
• we expect Registered Providers to consider the specific needs of vulnerable tenants when deciding on the type of tenancy to provide
• in most circumstances we would wish to see tenants moving into sheltered and extra care accommodation given the most secure type of tenancy available
• we would expect tenants moving into general needs accommodation to be given more flexible types of tenancy unless there are exceptional circumstances
• there may be some circumstance where it is considered that, due to their individual circumstances, a tenant going into general needs property should be granted a more secure form of tenancy. These circumstances may include learning disability, chronic physical disability, and those with a severe and enduring mental health problem which would disadvantage them in securing alternative accommodation

We welcome the opportunity for registered providers to be able to review fixed term tenancies to make best use of housing stock and make it available to those who need it most. However, we anticipate that most fixed term tenancies will be renewed and that many tenants will need to stay in social housing either in their current home or another more suitable property.

When reviewing fixed term tenancies we expect Registered Providers to work in partnership with the relevant local authority and take the following into consideration:

• the current circumstances of the household and the need for a property of the type and size occupied
• the financial capacity (both earned income and benefit entitlement) of the tenant to secure alternative market accommodation or an affordable tenure on a different property. However, the assessment must not act as a disincentive to work
• the conduct of the tenant throughout the fixed term tenancy
• we are committed to ensuring that any decisions to terminate a fixed term tenancy do not lead to an increase in homelessness approaches
• where a joint decision is taken in conjunction with the local authority not to renew a fixed term tenancy we expect the Registered Provider to engage with the tenant at the earliest opportunity and ensure the tenant is clear about the Registered Provider’s intentions
• registered Providers should provide households affected by the termination of a tenancy with relevant advice and assistance that will enable them to successfully relocate to alternative suitable accommodation

• we expect registered providers to consult with the relevant authority about the disposal of any properties
• we will support the disposal of housing stock where registered providers can demonstrate they have:
  • a formally agreed strategy in relation to asset disposals
  • the proceeds can more productively be used to develop new affordable housing within the local authority area than maintaining the existing property
  • there will be no negative impacts on the balance and sustainability of the local neighbourhood
• we will support and encourage measures which make the most effective use of existing housing stock by:
  • encouraging under-occupying tenants to move to properties of a size more suited to their needs
  • or seek to address non-contractual sub-letting
• we will not support the disposal of the following types of housing without the support of a very strong business case which allows for future investment in more appropriate housing in the local authority:
  • larger homes for example three-bedroom homes with potential for use as four-bedroom houses, or homes able to accommodate six people or more
  • properties suitable for downsizing initiatives
  • homes in smaller rural settlements
  • supported or specialist housing
  • homes which have been extensively adapted

What we expect of registered providers in Dorset:

• registered providers must have clear and well communicated procedures for possession and eviction
• they must show that they have fully engaged with the tenant to try and prevent possession action, including the use of outside agencies for support
• we expect Registered Providers to develop and have in place eviction protocols which include:
  • policies designed to prevent homelessness
  • provide appropriate support for vulnerable people
  • work in partnership with Councils to prevent homelessness or provide practical housing options

A key aim of this strategy is to ensure equal access to our housing register, subject to need-specific determinants of priority and eligibility.

We wish to ensure that no household is disadvantaged either in registering or bidding for property because of personal characteristics or abilities.

Wherever possible, we will implement any actions or steps identified by the equality impact assessment (EqIA) as soon as it is practical to do so. We expect all Registered Providers to carry out EqIAs of their tenancy policies.

The group which developed this strategy will provide feedback on whether comments received via the consultation have been incorporated into the strategy and will provide reasons where it has not been feasible to take action. This will be placed on Dorset For You, Dorset HomeChoice and the Borough of Poole’s website.

Affordable housing

Housing options available to residents who cannot afford to rent or buy a home in the open market. Affordable housing includes social rented housing, affordable rent housing and intermediate housing solutions such as shared ownership.

Affordable Rent

Rents offered by Registered Providers of social housing at up to 80% of the rent that would be charged if the property were let in the open market.

Conversion

Aa former social rented property re-let at an affordable rent.

Comprehensive Spending Review

Government review of national public sector spending to plan expenditure over the medium term. Reviews take place every three years.

Equality impact assessment

An equality impact assessment assesses the likely or actual effects of strategies, policies or services on people in respect of disability, gender and racial equality. It helps ensure the needs of people are taken into account when we develop and implement a new strategy, policy or service or make a change to a current strategy, policy or service.

Extra care housing

Housing designed for frailer older people with varying levels of care and support available on site. People who live in Extra Care Housing have their own self contained homes. Extra Care Housing is also known as very sheltered housing, assisted living, or 'housing with care'.

Fixed term tenancy

A tenancy offered for a specified period of time.

General needs accommodation

Accommodation which will meet the needs of households without any specific support needs.

Homes and Communities Agency (HCA)

The national housing and regeneration agency for England, responsible for allocating funding for new affordable housing. A non departmental public body, sponsored by the Department of Communities and Local Government. In April 2012 the HCA took over the regulation of Registered Providers from the Tenant Service Authority.

Homelessness duty

A local authority owes the “main homelessness duty” when the authority is satisfied a homeless household is eligible for assistance, unintentionally homeless and falls within a specified priority need group. When this duty is owed, the authority must ensure suitable accommodation is available for the household.

Housing Register

A list of households who wish to be rehoused by a social landlord including tenants of social landlords who wish to transfer. Often referred to as a waiting list.

Local Housing Allowance

The current form of housing benefit paid to people with low incomes renting in the private sector.

Localism Act

Received royal assent on 15th November 2011.

Market rent

The rental income that at property would most probably command on the open market.

Probationary period

A probationary tenancy (also known as a starter tenancy) is an assured short hold tenancy. It is intended to last for an initial 12 month period.

Registered providers

Organisations that provide affordable housing to those in housing need. Often these providers are housing associations. They are registered with the HCA.

Section 106 Agreement

Section 106 of the Town and Country Planning Act 1990 allows a local planning authority to enter into a legally-binding agreement or planning obligation with a landowner in association with the granting of planning permission. The obligation is termed a Section 106 Agreement.

Sheltered housing

Housing designed to provide additional support to enable independent living, usually for people over 60. The accommodation is self contained.

Social housing

Housing that is let at low rents and on a secure basis to people in housing need. It is generally provided by councils and not-for-profit organisations such as housing associations.

Social rent

Housing for which guideline target rents are determined through the National Rent Regime. Rents are usually significantly lower than market levels.

Strategic Housing Market Assessment

An assessment of how housing markets operate in defined areas, used to identify housing needs within that area.

Tenancy fraud

There are many types of tenancy misuse, for example not using the property as the ‘sole or principal home’, obtaining a property through false statements and obtaining a property by using false documents.

Tenancy policy

Tenancy policies are a new requirement for Registered Providers and stock holding local authorities introduced by the Homes and Communities Agency.

The policies must outline the providers approach to tenancy management, including interventions to sustain tenancies, prevent unnecessary evictions and tackle tenancy fraud.

Universal Credit

Universal credit will bring together a number of working age benefits into a single payment. It will be implemented gradually from October 2013 to October 2017.

Source: Data provided by each Registered Provider

• Anchor Trust
• Borough of Poole
• Bournemouth Churches Housing Association
• Citizens Advice Bureaux - Bridport, Christchurch, Dorchester and District, East Dorset, North Dorset, Poole, Purbeck, Sherborne, Weymouth and Portland
• Broadway Park Housing Association
• Christchurch Borough Council
• Dorset County Council, Supporting People Team
• East Boro Housing Trust
• East Dorset District Council
• Hanover Housing Association
• Hastoe Housing Association
• Housing Register applicants
• Knightstone Housing Association
• Magna Housing Association
• North Dorset District Council
• Poole Housing Partnership
• Purbeck District Council
• Purbeck Town and Parish Councils
• Raglan Housing Association
• Radian
• Sanctuary Housing
• Shelter
• Sovereign Twynham
• Spectrum Housing Group
• Synergy Housing
• West Dorset District Council
• Weymouth and Portland Borough Council

Some associations placed details of the consultation on their websites

This strategy was last reviewed in 2015. 

The next expected review date is currently being established.