Shapps to extend length of probationary tenancies

Published by Ross Macmillan for 24dash.com in Housing and also in Communities, Local Government

Communities and Local Government (CLG) plans to extend the length registered providers can offer probationary tenancies for.

A draft direction was issued this morning from housing minister Grant Shapps in a consultation on tenure, rents, tenant involvement and mutual exchange.

The document clarifies that private registered providers will be able to extend probationary tenancies up to 18 months (as local authority landlords can already) which can precede new fixed-term tenancies, minimum of which can be just two years.

Currently, providers offer 12-month probationary tenancies as the norm; with them being seen as an important tool to identify and deal with anti-social behaviour at an early stage.

The move is expected to anger tenants who have already seen their security compromised under Government plans.

Today's consultation makes clear that existing social renters moving to a home let on an Affordable Rent will lose their existing security and it will be up to the provider to offer the same level of security.

Government policy to cap welfare payments from 2013 and introduce higher rents on new and some existing social homes - via its Affordable Rent product - has seen some providers emphasise the importance of probationary tenancies in recent months.

Last month at the Chartered Institute of Housing's (CIH) annual conference, Family Mosaic announced it was looking to, for the first time, roll-out probationary tenancies for fear of taking on tenants that wouldn't be able to afford their rent.

Family Mosaic chief executive Brendan Sarsfield said it was a "reluctant" move. He said: "We've always been committed to giving security from day one. It's a hard decision to make but it is part of our risk management strategy."

A Tenant Services Authority (TSA) spokesperson said: "Housing associations can currently extend a probationary tenancy beyond its initial 12 month duration, though this is generally only done in exceptional circumstances.  The regulator would expect the Board to be aware of and approve the association's policies in this area as in all others.  

"The purpose of the proposed new tenancy direction in relation to probationary tenancies is to make it clear that housing associations can grant probationary tenancies where they see fit, and extend these up to 18 months, in line with local authority providers."

Under the new flexible tenancy arrangements - outlined today in the consultation - providers are required to publish and maintain a clear and accessible tenancy policy.

The Government believes that the minimum guarantee should be a two-year tenancy. However, it says it expects that the vast majority of tenancies will be provided on longer terms – particularly for vulnerable households or those with children.

It says: "We are proposing that registered providers’ tenancy policies should explain how they will take account of the needs of vulnerable households, including through the provision of tenancies which provide a reasonable degree of stability for those households."

The directions are set to apply to registered providers from 1 April 2012.