Peabody to scrap fixed-term tenancies

Peabody said it decided to move away from fixed-term tenancies after a review found “no difference in the level of rent arrears or terminations between fixed-term and lifetime tenancies and no increase in mobility due to change in circumstances including downsizing”.

It said some fixed-term residents reported being anxious about tenancy renewals and felt less engaged with their neighbourhoods.

Ashling Fox, chief operating officer at Peabody, said: “While they were introduced with the best of intentions, there is no evidence that fixed-term tenancies enable the allocation of our homes to be managed more effectively.

“They cause uncertainty for residents and are unnecessarily onerous to administer for landlords.

“Residents are front and centre of our operations and listening to their concerns has enabled us to rethink our approach.

“I am delighted we have taken the step to stop issuing fixed-term tenancies and will continue to work with residents to develop a more secure, affordable and effective way of meeting housing need.”

Around 6,000 of Peabody’s tenants are currently on fixed-term tenancies.

It said a further review will examine the best way of “increasing security of tenure” for existing tenants.

Fixed-term tenancies were introduced by the coalition government as part of the 2011 Localism Act, with the stated aim of utilising limited social housing stock more flexibly.