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More housing associations consider ditching fixed-term tenancies
Several large housing associations are considering following London giants L&Q in giving their residents lifetime tenancies, Inside Housing can reveal.
London’s largest housing association announced last week that it would offer lifetime tenancies to all its residents, scrapping fixed-term tenancies across its stock.
Housing associations were given the option to offer fixed-term tenancies under the Localism Act in 2012, replacing the previous position where all tenancies in the social housing sector had been for life. Most housing associations offer both life and fixed-term tenancies – typically of five years.
Brendan Sarsfield, chief executive of Peabody, told Inside Housing that his association was “looking at the issue”.
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He added: “I can’t give you the answer yet, because it’s not for me to do that but what we know is five years is not enough in the London environment, because the difference between the market and our rents is so huge.
“It’s impossible for anyone to move on within five years and so we’ve got to find a solution that works in the broken market it is. It probably would work if the market wasn’t broken, but it is. So, I think it’s unfair to impose five-year tenancies on the people that we house.”
Last month, the government U-turned on its proposal to scrap lifetime tenancies entirely and create rolling fixed-term tenancies for all new social housing tenants.
Explaining his decision to transfer all 8,500 fixed-term tenants to lifetime tenancy, David Montague, chief executive of L&Q, said the tenancies were a “crude tool” and cause “unnecessary worry” for residents.
Rod Cahill, chief executive of Catalyst said his organisation “would definitely consider” scrapping fixed-term tenancies.
He told Inside Housing: “A review of all that is overdue, so we will be looking at it at some point in terms of what we want to do. As far as I know, we haven’t ever enforced a fixed-term tenancy, so it’s really a question of what value there is.”
Meanwhile, Paul Hackett, chief executive of Optivo and chair of the G15 group of large London housing associations, said: “No doubt we’ll be having a conversation about it internally.
“There is some merit to having fixed-term tenancies in case circumstances do change significantly. But equally, I do see the advantages to lifetime tenancies.”
Sinead Butters, chair of Placeshapers, said that in her own housing association, Aspire, the flexibility of fixed-term tenancies had been important, but she nevertheless praised L&Q’s “bold move”.
She added: “We are all about supporting people to sustain their tenancies, but the flexibility of the starter tenancies is helpful to us. But the point has been made and maybe we’ll rethink, I don’t know.”
Some in the sector, though, remained fully committed to fixed-term tenancies. Kate Davies, chief executive of Notting Hill Genesis and Mark Henderson, chief executive of Home Group, told Inside Housing they would not be scrapping fixed-term tenancies.
“I don’t think it does make people feel unsettled. You have to give that good quality housing management a caring and compassionate approach. I don’t think the idea that we’re going and telling people they’ll be out in five years has ever been our way of using it,” said Ms Davies.
“It’s just to have an opportunity in those situations where you want to change a block or something, in a fundamental way, to have the opportunity to conclude a tenancy.”
Mr Henderson added that the system was under “constant evaluation” but said: “We haven’t, to be honest, picked up concerns from our customers because we’ve been very clear that if you pay your rent, don’t commit ASB [anti-social behaviour], there’s no issue with renewing your tenancy. It works pretty well for Home Group at the moment.”
Update: at 14.36 on 27.9.18 This story was updated to correct Brendan Sarsfield’s quote.
