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POLICY DOCUMENT Group Member: Progress Housing Group Service Area: Housing Management Document Ref No: GRPOLHM14 SSubject Title: Tenancy Strategy Version: 2 Date of Issue: November 2012 Last Reviewed: April 2014 Hyperlink: April 2017 Document Owner: Operations Director for Housing, Communities and Support Date of Board Approval: 110th November 2014 ISO99001:2008 – Controlled Document Progress Group Housing Management Title: Tenancy Strategy Ref No: GRPOLHM14 Reviewed: April 2014 Version: 2 1. INTRODUCTION 1.1 This policy provides details of the different tenancies PHG offers across its subsidiaries, under what circumstances these tenancies will be offered and any additional criteria for their application (Appendix 1) together with more detailed information regarding the introduction of Affordable Rent Tenancies. 1.2 PHG will work with the local authorities where it owns stock so that this policy has regard for their tenancy strategies. 2. SCOPE OF THE POLICY 2.1 This policy defines all of the different tenancy agreements PHG may offer and in which situations they will be applied. 2.2 It is not the intention of this policy to define specific details of tenancy agreements- these will be provided on an agreement by agreement basis. 2.3 This policy applies to all tenancy agreements offered by PHG. 3. RESPONSIBILITY 3.1 It is the responsibility of PHG Boards of Management to ensure that the associations comply with current tenancy legislation. 3.2 PHG management teams must ensure that current tenancy legislation is acted upon and implemented within the practices of the associations. 3.3 It is the responsibility of the Operational Directors for Housing, Communities and Support to ensure that this policy is enforced. 3.4 It is the responsibility of housing management staff to follow the related procedures and deliver this policy operationally. 4. POLICY 4.1 Aims & Objectives 4.1.1 PHG will work in conjunction with the relevant local authorities in which it owns stock to provide tenancies that create sustainable communities. A list of all tenancies provided is presented in Appendix 1. ISO9001:2008 – Controlled Document Page 1 Policy Document Template V3- Created by Service Development Progress Group Housing Management Title: Tenancy Strategy Ref No: GRPOLHM14 Reviewed: April 2014 Version: 2 4.1.2 The Localism Act came into force in April 2012. A key element of the Act is the flexibility of tenure available to local authorities and housing associations. 4.1.3 Local authorities were required to publish Tenancy Strategies by January 2013. This strategic duty is placed upon every local authority (except County Councils) under Clause 149 of the Localism Act 2012. 4.1.4 Regulation of Social Housing is currently provided by the Homes & Communities Agency via a set of standards that must be adhered to and achieved. PHG issues tenancies in line with the Social Housing Regulatory Framework Tenancy Standard. 4.2 Working with Local Authorities 4.2.1 PHG will provide tenancies that take into account the housing strategies agreed by local authorities. We want to ensure that our tenancies deliver sustainable communities and develop the communities in which we serve. 4.3 Affordable Rent Tenancies 4.3.1 Following the Localism Act PHG now offers Affordable Rent Tenancies (rent levels different from normal assured tenancies ie up to 80% of market rent inclusive of service charges) where a property has been developed through the HCA as part of the affordable homes programme. 4.3.2 Affordable Rent Tenancies are let on a starter tenancy basis with automatic conversion subject to non-breach of the agreement and will therefore not normally be let on a fixed term basis. 4.3.3 Properties are also re-let on an affordable rent where determined in the affordable homes programme and will be chosen on the following criteria: Family houses will normally be selected first Property built within the last 15 years will normally be selected Properties without a service charge Wherever possible a geographical spread will be achieved Difficult to let properties will NOT normally be allocated affordable rent tenancies ISO9001:2008 – Controlled Document Page 2 Policy Document Template V3- Created by Service Development Progress Group Housing Management Title: Tenancy Strategy Ref No: GRPOLHM14 Reviewed: April 2014 Version: 2 Supported accommodation will not be made available for affordable rent tenancies. 4.3.4 Where an affordable rent tenancy is ended by the tenant, the property may or may not be retained as an affordable rent tenancy. If it is not, then an alternative property will be identified using the above criteria. 4.4 Ensuring Affordability 4.4.1 PHG wants to ensure that affordable rent levels remain affordable. Affordable rents are set to a maximum of 80 per cent of the market rent for a comparable property within the same locality. 4.4.2 We will ensure that rents charged for affordable rented properties do not exceed the relevant Local Housing Allowance (LHA) rate that is applicable for that property size at the time of the original let. It is recognised, however, that depending on the level of rent increases following the original let there may be circumstances in which the affordable rent exceeds the LHA in subsequent years. 4.5 Mortgage Rescue Scheme 4.5.1 Where a property is purchased under the Mortgage Rescue scheme, a fixed term tenancy will be granted on a term of 5 years. The renewal criteria at the end of the 5 year fixed term period will be: Satisfactory conduct of the tenancy with specific reference to payment of rent 4.5.2 Where a tenancy has been conducted satisfactorily a non- fixed term affordable rent tenancy will normally be offered. 4.5.3 Where a tenancy has NOT been conducted satisfactorily we may serve a notice to commence proceedings to bring the tenancy to an end and give appropriate help and assistance to find alternative accommodation or we may offer another fixed term tenancy. This will include helping to register on an appropriate housing register, assistance with bidding for properties, signposting to appropriate agencies and ensuring appropriate priority is given through our allocation policy. 4.6 Lettings Criteria ISO9001:2008 – Controlled Document Page 3 Policy Document Template V3- Created by Service Development Progress Group Housing Management Title: Tenancy Strategy Ref No: GRPOLHM14 Reviewed: April 2014 Version: 2 4.6.1 We will follow our existing lettings policies. Specifically, we will clearly advertise Affordable Rent Tenancies when using our Choice Based Lettings schemes. 4.7 Mutual Exchanges 4.7.1 Affordable Rent tenants will be able to mutually exchange their home. 4.7.2 Applications for a mutual exchange will be assessed through the Group’s Mutual Exchange Policy. 4.7.3 We will provide information to the Assignee of the implications of exchanging with a tenant who has or is an Affordable Rent Tenant. 4.8 Transfers 4.8.1 Transfers will be administered in line with the allocation policy of the relevant Choice Based Lettings scheme. Affordable Rent tenants will be able to apply for a transfer if they fulfil the criteria set out in the allocations policy. 4.8.2 Where the transfer property offered is not compatible with the affordable rent model the tenant will be offered an Assured Tenancy on a social rent. 4.8.3 Where the transfer property offered is compatible with the affordable rent model the tenant will be offered another Affordable Rent Tenancy. The review will be carried out within the same timescales from the start date of the original tenancy. 4.8.4 Assured or secure tenants transferring to a ring fenced affordable rent property will be offered an Assured Tenancy on an affordable rent. 4.8.5 In cases of a transfer the tenant will not be offered a tenancy with less security than the tenancy they currently hold. 4.9 Succession 4.9.1 We will not grant Affordable Rent Tenancies succession rights outside of statutory rights. 4.10 Abbreviations 4.10.1 HCA – Homes and Communities Agency 4.10.2 TSA – Tenant Services Authority 4.10.3 RTB – Right to Buy ISO9001:2008 – Controlled Document Page 4 Policy Document Template V3- Created by Service Development Progress Group Housing Management Title: Tenancy Strategy Ref No: GRPOLHM14 Reviewed: April 2014 Version: 2 4.10.4 RTA – Right to Acquire 4.10.5 PHG – Progress Housing Group 4.11 References 4.11.1 Localism and Decentralisation Bill 2011 4.11.2 Localism Act 2012 4.11.3 The Regulatory Framework for Social Housing in England from April 2012 4.11.4 DCLG - Local Decisions: a fairer future for social housing 4.12 Data Protection 4.12.1 All tenancies provided by PHG will require personal information of an individual which falls under the Data Protection Act 1998. 4.12.2 The handling of this information will be fully compliant with the Act, and handled following PHG’s Data Protection Policy. 5. IMPLEMENTATION 5.1 Training 5.1.1 Relevant PHG staff will be made aware of new tenure types, their purpose and their impacts procedurally. 5.1.2 All housing management staff will be provided with training. The training will cover; The different types of tenancy agreement offered by PHG subsidiaries Under what circumstances and criteria the different types of tenancy agreement will be offered What each type of tenancy agreement means in relation to tenants’ rights legally and how this may effect the service provided to the tenant 5.2 Procedure references 5.2.1 NPH01 Starter Tenancies - Formal Review against service of Section 21 Notice 5.2.2 NPHM03 Allocations Procedure ISO9001:2008