Shapps standing by two-year tenancy option

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

Housing minister Grant Shapps has ruled out removing all reference to two-year tenancies in the Localism Bill, following calls from Labour's shadow housing minister to do so. 

Ms Seabeck wrote to Grant Shapps last week after he was forced to reissue a draft direction for the social hosuing regulator explicitly stating that tenancies of two years should be used as an "exception".

Previously, the Government said a minimum tenancy term of two years should be available to registered providers, but it "expected the vast majority of tenancies to be provided on longer terms".

The new direction - which accompanies a consultation on directions to the regulator - now states that where "registered providers grant general needs tenancies these are for a minimum fixed term of five years, or exceptionally for a minimum term of no less than two years, in addition to any probationary tenancy period."

Following the reissued draft, prompted by pressure from the House of Lords, Ms Seabeck called on Shapps to "remove all reference to social tenancies of as little as two years from the Localism Bill when it is debated again in the autumn".

In reply, Mr Shapps rejected the calls.

He said: "I have  consistently stated that we expect landlords to use tenancies with terms of two years only exceptionally; our propsoed change to the text of the tenure direction simply makes that expectation a requirement on social landlords."

Housing associations have been able to offer flexible tenancies - a minimum of which can be just two years - since April 2011 as part of the Government's Affordable Rent programme. The Localism Bill, however, will give councils the power to offer them to new tenants.

Mr Shapps added..."the Tenure Standard is of course the right place to set out that social landlords may only grant tenancies of less than five years in exceptional circumstances, not least because putting such provisions on the face of the Bill would cover only local authority, not association landlords."

He added that he intended to provide landlords and councils with the "necessary flexibility" to help those who are in most need into social housing rather than "ignoring the problem".

He also asked Ms Seabeck to clarify whether Labour would reverse flexible tenancies and affordable rent in office?

Labour has opposed flexible tenancies and affordable rent throughout the debates on social housing reform.

In an article for 24housing magazine, Ms Seabeck said that allowing housing associations to put rents at up to 80% of the market level and loading up on debt would see them "sweat their assets". She questioned where future development would come from post-2015."

A spokesperson said "Labour would continue to oppose flexible tenancies in the Bill when Parliament returns in the autumn".