1. Geoff Clark Neighbourhood Services Manager
Fixed Term Tenancies
Geoff Clark
Neighbourhood Services Manager

2. Background
The Localism Act 2011 gave both local authorities and housing associations the legislative and regulatory freedom to offer fixed term tenancies.
The term ‘fixed term tenancies‘ refers to both flexible tenancies (a time-limited form of secure tenancy which has most of the rights of a secure tenancy) and assured shorthold tenancies granted for a fixed term.

3. The Government envisaged that fixed term tenancies would allow housing providers to:
Increase mobility By encouraging tenants to move between properties and sectors as their housing need changed.
Ensure that social housing is used only for those in genuine need Assessing income and other factors at the end of the fixed term.
Target social housing so it meets the needs of the community Helping to address under occupation.
The Government said the changes were intended to give local authorities and housing associations greater freedom to manage their housing stock and ensure the social housing is allocated to those who need it most.

4. What we've done Generally been a landlord that is risk adverse
Wanted to pursue the idea of fixed term tenancies but decided to take a cautious approach
Our Tenancy Policy was approved in October 2012 and we introduced 10 year fixed term tenancies from 1st April 2013

5. What we did
All new tenants from that date are granted introductory tenancies for a 12 month period ( except for existing tenants with a secure or assured tenancy held before 1st April 2012 )
Every tenancy is reviewed at around 6 weeks and 36 weeks which includes a home visit.
Tenants that breach their tenancy during the introductory period are given an extension up to a further six months. This decision is subject to review by a review panel.
In cases of serious breaches (rent arrears, ASB ) legal action is taken to end the tenancy.

6. What we did
The majority of introductory tenancies will then go on to be fixed term tenancies for a further 10 years.
However to protect older people (aged over 65) and applicants with long term disability that requires a specially adapted property a secure lifetime tenancy is offered following the introductory period
In the 9th year of a 10 year flexible fixed term there will be a review where a households circumstances will be considered, advice given, and a decision made regarding the family continuing occupation of their current home. 

7. Why did we take this route?
The majority of our stock is 3BH and we were aware that many of these properties we occupied by elderly persons – often single pensioners.
So we wanted to introduce a system that made the best use of our stock by ensuring the right person is in the right home at the right time.

8. By creating 10 year fixed term tenancies we aimed to balance community stability whilst making best use of our stock.
It also helps us tackle future under occupation.
The introductory period has allowed us to target those residents within the first year that are poor rent payers or have been responsible for instances of ASB. 

9. Around 1/3 of our stock is sheltered accommodation and members wanted to offer an increased level of security for elderly and disabled persons. We therefore retained lifetime tenancies for these groups.
We also gave consideration to what we would do at the end of the 10 year fixed term period.

10. The story so far...
Since 1st April 2013 we have let 859 introductory tenancies (current stock 5,232)
Of these 484 have gone onto fixed term tenancies and 70 secure tenancies. So just over 9% of our stock is already let on fixed term tenancies.
During the same period we have let 265 secure lifetime tenancies that didn’t have an introductory tenancy.
On our two latest new build sites which have a mix of 1,2 and 3 Bed Houses we have a mix of 21 Introductory tenancies and 14 secure lifetime tenancies.

11. 49 of the fixed term tenancies that we have let since April have subsequently terminated their tenancy.
37 Introductory tenancies have been extended following rent arrears or ASB.
No change in void turnover ( roughly static at 310 a year ) or levels of anti- social behaviour.
The picture is complex especially when assessing mutual exchanges and transfers and successions which involve tenancies let after 1st April 2012.

12. What we have experienced
There is a general understanding amongst applicants as to why fixed term tenancies have been introduced.
Some questions are asked about what will happen at the end of the fixed term period and residents are happy when we explain a review will take place.
Some are keen to understand whether a fixed term tenancy will effect their ability to exercise the RTB.

13. Most applicants appear to be concerned about the ‘here and now’ and are not interested in focussing on 10 years ahead.
Younger generations have more awareness and appreciate why fixed term tenancies have been introduced. Many have waited several years to secure a home and realise there are a lot of older people (in their eyes) that are occupying homes they no longer need.

14. Older generations are often surprised that we are not offering a lifetime home so it appears in some respects that a cultural change is taking place.
Some residents understand that if their circumstances have changed at the end of the 10 year fixed term they maybe offered an alternative property.

15. The future
We are still just over 6 years away from starting to review the circumstances of the first tenants that signed a fixed term contract.
How many will still be tenants by March 2024?
Changes in Government and the policies they seek to introduce could influence what we do as landlords and the attitudes and behaviours of our tenants.

16. Cambridgeshire is one of the largest growth areas in the Country
Cambridgeshire is one of the largest growth areas in the Country. Construction is just commencing on a new town Northstowe just outside Cambridge which has plans for 10,000 homes.
We have a devolution deal in our local area which will introduce a new regional layer of Government. Money has been set aside for new affordable homes.

17. These will undoubtedly have an impact on local business, labour, transport and housing markets.
Talk of Government introducing 5 year fixed term tenancies. SCDC have been part of a working group of local authorities working with the DCLG to help shape new guidance and legislation on this topic. We understand that draft regulations  will be produced in a few months time.

18. Please feel free to ask any questions :)
Thank you
Please feel free to ask any questions :)