Under-occupation clause in council's new fixed-term tenancies

Published by 24publishing for 24dash.com in Housing and also in Central Government, Communities, Local Government

The London borough of Barnet believes it is the first local authority to sign tenants up to new fixed-term tenancies - of between two and five years - but warns they will not normally be renewed where a tenant is under-occupying by one room or more.

The Government's Localism Act 2011 has given councils the power to use flexible fixed-term contracts for council tenancies and a requirement for them to produce a local tenancy strategy setting out the offer, length and any exemptions.

The Conservative-run authority - through its 15,000-home ALMO, Barnet Homes - plans to offer single people under the age of 25 (excluding care leavers), introductory tenancies of one year followed by tenancies which will be reviewed every two years.

This, despite the new regulatory framework for social housing in England - launched in April - stipulating that tenancies below five years should be offered in "exceptional circumstances". This condition covers both local authorities and housing associations.

Barnet's local tenancy strategy says: "Other single people over the age of 25 could be offered two year tenancies rather than five depending on their vulnerability and the outcome of the housing assessment."

The majority of new tenants, however, will be offered 12 month introductory tenancies followed by a flexible tenancy of five years from 9 July.

The council expects to sign the first tenancies this week.

Barnet says that around eight months before a flexible tenancy is due to end, it will be subject to review.

The strategy says tenancies will not normally be extended where the household income is above median earnings in the borough. For households with children this currently equates to £36,200; for households with no children, this equates to median earnings minus 15% [currently £30,800].

Other instances where they will not be renewed is where the tenant or member of the household is convicted of a criminal act, the property is under-occupied by one bedroom or more, or, where the tenant is on a two-year tenancy, has not worked or undertaken any training for a period of six months prior to the end of the tenancy.

Under-occupiers also face housing benefit cuts from next April. On average council tenants across the country face losing £14 a week.

The strategy does say, however, that there may be circumstances in which it would be
unreasonable to expect someone to move -  even if the above criteria applied. These include instances where the tenant or a household member is terminally ill, has a disability, has children attending a local school or is a foster carer.

Existing tenants, says Barnet, will still see all their current rights, including a secure lifetime tenancy, fully protected.

A spokesperson for the local authority said the Department for Communities and Local Government (DCLG) were not aware of any local authority having issued flexible tenancies yet, making Barnet the first council to offer the new tenancies.

Councillor Tom Davey, Cabinet Member for Housing, said the under 25s restriction was to discourage worklessness.

He said: "It is to stop somebody straight out of school getting a house for five years. If you know you're going to get that, the desire to further yourself isn't there. Two years time is enough time to get yourself into work or on a traiining course. If in two years time, somebody is still in need, that case will be taken on its merit."

Davey said it was more likely for the under 25s "to be able to help themselves".

As of 1 May Barnet had 256 secure council tenants aged 25 or under and a further 64 on introductory tenancies which would normally convert to a secure tenancy after one year.

Quizzed on whether being single and under 25 equated to "exceptional", Mr Davey said: "Looking at our housing stock, as far as we're concerned, someone given a house under 25 is exceptional. We think this group has a different criteria and should be able to better help themselves."