Friday, 25 May 2012

Mutual excahnge and new tenancies

Posted in: Need to Know | Ask the Experts

10/01/2011 1:17 pm

Paul Jones

Paul Jones

Posts: 49

Hello. I have not posted here before and am looking for expert opinion.  Please don't just post what you fear may happen. I'm really looking for informed expert opinion on this. I am a social housing tenant and wish to exchange. I don't beleive a swap worht doing unless I retain my social rent and lifetime tenancy (I am both unwell and fonancially poor). What will happen to people like me who aren't able to complete their exchanges before April 2011 when I'm told the government is bringing in higher rents (which are in no way "affordable" to people who are vulnerable in social housing).  I can't be expected to give up my fair rent social tenancy for somethnig near market rent.  I am terribly worried and the situation has made me more unwell.

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Cinnamon

Cinnamon

Posts: 24

10/01/2011 2:01 pm

My understanding is that market rents will only apply to new tenancies.  Mutual Exchanges are not new tenancies.  The ingoing/outoging tenant 'assigns' the tenancy to the other person, with the date of the assignment noted.  A new tenancy is not created, as you will be taking over someone else's tenancy.

The only issue is if you are a secure tenant moving to an assured tenancy, as you lose your security of tenure.

In any event, I would suggest that you speak to your housing provider for furthe clarification.

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Paul Jones

Paul Jones

Posts: 49

10/01/2011 2:11 pm

The housing provider (the one I want to go to) keeps saying "we don't know yet" which is no help.  I am aware that Mutual Exchanges are "assigned" tenancies, but are there any plans to change that and allow HAs to consider swappers to be new tenants? If there are the mutual exchange sytem will dwindle away as people won't feel safe moving to downgraded or more expensive tenancies.  Mobility within social housing will pretty much end for social tenants. I will be trapped.

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Paul Jones

Paul Jones

Posts: 49

10/01/2011 9:11 pm

Could any other housing insiders respond please? This is a very threatening time for social housing tenants, especially those considering a move.

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Anonymous

Anonymous

10/01/2011 11:07 pm

You can download the proposals for yourself from the DCLG website.

http://www.communities.gov.uk/documents/housing/pdf/1775577.pdf

It says: 

"Existing tenants with secure and assured tenancies, and people who are already owed the homelessness duty, will be protected from any changes to their security or other rights, but we will give social landlords, including housing associations, the freedom to offer more flexible tenancy arrangements to new tenants, and new homelessness applicants, in the future."

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JamesD

JamesD

Posts: 20

11/01/2011 9:21 am

Hi Paul,

Please try not to let this make you more unwell. You have no need to panic. If you carry out a mutual exchange your tenancy is protected - there are no plans to change this. The exchange is done by Deed of Assignment and you get the tenancy held by the person you are "swapping" with - please make sure you know what sort of tenancy this is before signing anything.

Please do not focus on April 2011 - the legislation will not be in place by then. The period of consultation is still underway and one of the questions contained in that asks how long landlords think it will take to implement changes. A long time is the answer because there is a requirement to consult with customers.

Mobility will not end for social tenants as a result of the changes, if anything it will improve.

I appreciate your concerns as a tenant but believe me those who try and provide the best service we can are worried too!

Take care and keep well.

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Paul Jones

Paul Jones

Posts: 49

11/01/2011 12:37 pm

That is very kind and helpful James. The whole thing has caused me panic and made my ill health worse.  I understand some HAs (L&Q for example) actually went to the government and suggested "near-market" rents. It worries me that HAs have fogotten that they were set up to provide secure homes for the vulnerable, disadvantaged and minimum waged. Could an HA consider a mutual exchanger a "new tenant" under any circumstances? 

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The Democratic Dictator

The Democratic Dictator

Location: Somewhere in a Democracy
Posts: 22

11/01/2011 3:56 pm

Landlords who build a lot more frequently and on a larger scale will push the Govt for intermediate rents, because it is these higher rents (80% of market rent) that will fund there development activity in the future due to the Govt scrapping the Affordable Development Programme (ADP) in the near future. However, a mutual exchange will eventually become classed as a new tenancy once they have set the blueprint for social mobility and new tenancies in general. But you are probably looking at 2015 onwards.

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JamesD

JamesD

Posts: 20

12/01/2011 1:27 pm

Hello again Paul,

A mutual exchange never creates a new tenancy. The deed, under which the assignment by way of exchange take place, grants you the rights to the tenancy you are swapping into.

Please just make sure you know what you are getting and that you will be no worse off by carrying out the assignment.

Please also ensure that the assignment is actually done by way of a deed.

If in doubt speak to a specialist housing advisor or the CAB.

All the best.

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Paul Jones

Paul Jones

Posts: 49

19/01/2011 10:00 pm

Are you sure it is not changing in April?  People on homeswap sites are now saying thnigs like this:

"The secure tenancy is being changed by the government and ends by April this year then its renewable contracts BUT if you swap before the deadline you retain your secure tenancy so as time is ticking fast we are looking for a nice 2 bed property".

If this is true, the swap system will die.

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Morse

Morse

Location: London
Posts: 12

20/01/2011 9:16 am

Paul

You'll only retain your secure rights if your exchange into another property with a secure tenancy.  If you "trade down" in tenancy terms, you will lose your security.  There is a proposal to change the swapping sites, but this seems to me to an adminstrative change, that should open up other counties/areas to swappers.

If you mutually exchange, you will be a new tenant, on an old tenancy (with all the rights and responsibilities that attach to the old tenancy).  Don't worry about it. 

Morse

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JamesD

JamesD

Posts: 20

20/01/2011 2:09 pm

Paul

In answer tio your questions,

 Yes, I am sure - the new flexible tenancies will not be in place by April this year.

People posting on swap sites are clearly wanting to swap quickly and perhaps they feel that a bit of scare mongering will help.

As I have posted before, you do not get a new tenancy when you carry out a mutual exchange - you get the tenancy of the person you are exchanging with. If that is secure, you will have a secure tenancy. Simple as that.

Far from killing off the home swap one of the ideas within the Localism Bill is to create a national home swap scheme.

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marty21

marty21

Posts: 15

22/01/2011 12:55 pm

I do think that the proposed changes to social housing rents will have an effect on Mutual Exchanges. What tenant will want to swap with a new tenant who is paying the 80% market rent proposed? You take over the tenancy of the person you are swapping with. So will a tenant paying say £100 a week for a one bed flat, really want to swap with someone paying £160 for the same sized property.

It will create a two tier mutual exchange system - tenants on old rents will only swap with tenants on the old rent system. Tenants on the new rents will only be able to swap with tenants on the new rent system.

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Laurence Nasskau

Laurence Nasskau

Posts: 1

06/02/2012 5:53 pm

Of course the changes will have an impact on Mutual Exchanges. Most of the posts here refer to security of tenure although Paul's question was about mutual exchanges.  I am redrafting our Mutual Exchange Policy and asking our Exec to consider the impact that affordable rents will have - i.e.  If you have a social rent and exchange into an affordable rent tenancy, you take on that tenancy including its rent.

I consider that this logic will disadvantage those who are both in need and on low incomes, and is thereofre contrary to the intention of the equality bill passed in 2010.  I can't recall when the duty to consider disadvantage to this group was to become law for local authorities but don't thim such ocnsideration will have an impact.

A  note to Paul;  if you do not exchange and do not transfer, you will retain your current conditions.  Stay Put and all will be well.  If you DO want to exchange then you just need to be sure about whether the tenancy you will be taking on is at a rent you can afford.  Your current landlord will inform and help you.

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