Flexible tenure plan draws fire

Homelessness charity Shelter and the National Housing Federation distanced themselves from the Chartered Institute of Housing’s proposals.

In a paper published last week, the CIH says it wants to see a system of flexible tenure introduced ‘in which all new lets can be reviewed after a set period of time’.

Tenants whose circumstances had not changed or worsened since they moved in would be given support. Those whose situation had improved would be presented with four alternative options, but ‘the existing terms and conditions [of their tenancy] are not an option’, the report states.

Instead, they would be helped into low-cost homeownership, the private rented sector or full ownership. The fourth option would see their rent increased close to market levels.

Shelter chief executive Adam Sampson said the plans would create ‘perverse disincentives for tenants’.

John Bryant, policy leader at the National Housing Federation, said the CIH’s overall report contained a lot of good ideas. But he added: ‘I think the risk of a work disincentive, while it may not be intended, it is hard to see why it wouldn’t be the result of a scheme like this.’

The CIH’s proposals attracted an unprecedented number of comments on Inside Housing’s website. One asked if housing was ‘the only industry that openly resents its customers doing well’.

Richard Capie, director of policy and practice at the CIH, said: ‘We need to be clear that we don’t want to create a disincentive to do well and we are clear it shouldn’t be the only option – people who wish to own should be able to have support to save. But let’s not be afraid to have that debate.’

Have your say

You must sign in to make a comment