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Housing associations have been moving away from fixed-term tenancies in the past three years, but in an era of low social housing supply this is not the right move, writes Jo Barrett
The stark state of the UK’s housing crisis has been widely reported this year: thousands of homeless children growing up in converted shipping containers, families crammed into rooms in former office blocks, and a further 130,000 families in England forced into one-bedroom flats. It’s a clear reminder, if needed, that social housing is a scarce and very valuable resource.
In 2012 the Localism Act came into force, giving housing associations and local authorities in England the opportunity to offer fixed-term tenancies to social housing tenants for the first time.
The policy aimed to give housing associations and local authorities the freedom and flexibility to manage their own housing stock effectively – ensuring that social housing was allocated to those in society who need it most.
Since its introduction, the take up of fixed-term tenancies has been low and in the past 12 months we’ve seen some housing associations move back to the lifetime model. A government report in 2016 found that in 2014/15, just 15% of tenancies were let on a fixed-term basis.
But fixed-term tenancies, if used sensitively and selectively, can allow housing associations greater control and management of assets, while also providing residents with the right home, in the right place, to meet their current needs.
When Thrive Homes introduced fixed-term tenancies, we undertook research to find out the optimum length of tenancy for our customers and found that this was seven years.
“Our decision to introduce fixe-term tenancies was not just to make best use of our housing stock, but it gave us a regular and natural opportunity to communicate with our tenants about what would be most suitable to meet their needs”
Offering our tenants seven-year tenancies provides them the opportunity to create solid roots in their communities and build support networks.
Our decision to introduce fixed-term tenancies was not just to make best use of our housing stock, but it gave us a regular and natural opportunity to communicate with our tenants about what would be most suitable to meet their needs and identify any future housing need, including exploring other tenures that might better suit their housing aspiration – such as shared ownership for those with the ambition to join the housing ladder.
Since introducing fixed-terms tenancies in 2012, our thinking has moved forward and seen us introduce the ‘Thrive Deal’ for our affordable and social rent customers. It outlines our responsibility as a landlord, but also the responsibilities of our tenants.
The deal has helped to implement a cultural shift in our organisation, evolving our relationship with residents to a more modern, ‘customer-provider’ relationship and moving away from the old ‘tenant-council’ relationship.
This cultural shift brought about by fixed-term tenancies has helped residents to recognise that they are custodians of the property for a period of time, rather than a lifetime.
We want our tenants to value and treasure a Thrive Homes tenancy – not consider it as an option of last resort but something that they can be proud of.
This cultural shift brought about by fixed-term tenancies has helped residents to recognise that they are custodians of the property for a period of time, rather than a lifetime
Lifetime tenancies are of a bygone era, developed in a time when social housing was plentiful in post-war Britain, but through successive government policies we’ve seen a massive reduction in the number of social homes.
We need a new approach to allocate this scarce resource and moving back to lifetime tenancies is a backwards step.
We need to come together as a sector and address how we can make best use of our stock for those who need it most.
Jo Barrett, operations director, Thrive Homes
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