Government increases fixed-term tenancy limit to 10 years

Ahead of the bill’s third reading in the House of Lords this afternoon, Baroness Susan Williams of Trafford, a junior minister at the Department for Communities and Local Government, has tabled an amendment to allow new fixed-term tenancies of up to 10 years.

The government had intended to limit new tenancies to five years in order to “ensure better use” of social housing stock. However, this move had been criticised by peers and campaign groups.

Ministers had already agreed to allow tenancies of up to 10 years for people with disabilities. A separate amendment to the bill would allow families with children under nine years old to have a tenancy that lasts until the child’s 19th birthday.

The compromise on fixed-term tenancy lengths was welcomed by the Chartered Institute of Housing (CIH) which had lobbied for tenancies of between two and 10 years. Debbie Larner, head of policy and practice at the CIH, said: “Ten years seems to be the optimum – it gives some security but it also recognises that housing is a scarce resource and family circumstances do change.”

The government has also put forward an amendment to ensure the one-for-one replacement of high-value council homes sold to fund the Right to Buy extension, following concerns raised by peers. The amendment requires councils outside London to replace homes sold with “at least one new affordable home”. The bill already requires Greater London councils to provide two homes for every one sold.

Baroness Williams had also indicated a willingness to allow councils to provide “like-for-like” replacements – meaning homes replaced are of the same tenure as those sold in some circumstances.

However, there is no mention of this in the amendments tabled for the Third Reading.

Councils will have to send the Treasury a levy based on the value of their higher-value vacant homes. The government has not yet announced specifically how it will define “higher value”.

Crossbench peer Lord Bob Kerslake has tabled an amendment to require the government to allow councils to keep some of its higher-value void levy to build new homes if they can prove more social housing is required in their area.

UPDATE at 1.25pm 27.4.16

The piece has been updated with reaction from the Chartered Institute of Housing.